The Best Ways To Send Money Abroad in 2022
Using Cryptocurrency to Send Money Abroad
The modern cryptocurrency revolution has been revolutionary in changing the ways that people can transfer money abroad. In the past, people relied on slow and expensive wire-transfer services that would cost an arm and a leg in currency conversion and transfer fees. You can now send money anywhere, almost instantly, with very little fees and with no possibility of charge-backs or failed transfers. Today you can send crypto gifts to anyone, even non-Binance users, just by using the Binance app.
The revolutionary blockchain has disrupted traditional international payment systems. Instead of relying on slow and expensive, traditional financial systems to send money, you now have the choice to use peer-to-peer platform services to transfer crypto to anyone, anytime, and anywhere on the planet. Binance is my personal preferred platform, as it has been around for many years and it is one of the most trusted centralized exchanges in the world today. They offer a great user experience for both beginner and experienced crypto users. Binance Pay is a feature in the Binance ecosystem that allows people to send secure user-to-user crypto payments on the Binance app anywhere in the world.
Benefits of Using Binance Pay to Send Crypto
1. It’s Borderless
Binance Pay allows you to instantly send and receive crypto across the globe. As long as you and your recipient have access to the Binance app, you can send crypto anywhere around the world. International money transfers that normally require access to financial institutions, can be done with the touch of a button on the Binance app.
2. It Doesn’t Require a Bank Account to Use
Anyone with ties to the Southern Hemisphere knows very well that the number of unbanked individuals in some countries in South and Central America can reach up to 70% of the population. This was one of the reasons given by the president of El Salvador before they introduced Bitcoin as a national currency in 2021. This makes sending international money transfers to loved ones very complicated. Using Binance to send Cryptocurrency remittances does not require a bank account, and
3. Instant Payment
Unlike traditional money transfer systems that require some time to process and send, you can send crypto online instantly with Binance Pay. International money transfers are very often delayed because of bank holidays, multiple intermediaries, missing paperwork, wrong account information, and other factors. Binance operates on a user-to-user basis to avoid these types of delays allowing speedier transfers for you to get your crypto to who it needs to go to at lightning speed.
4. Zero Fees
Sending Cryptocurrency via Binance Pay allows you to send and receive crypto without incurring any additional fees or charges, no matter how little or how much money you send. Traditional money transfer fees can add up because of steep handling charges, foreign exchange fees, and bank fees. The more intermediaries there are between you and your recipient, the higher the fees. Binance facilitates user-to-user transfers, which eliminates the intermediaries and along with them the various fees that come with them.
5. Send to non-Binance users instantly
You can also transfer crypto to non-Binance users as long as they have access to the internet and a smartphone with the Binance app. This allows you to invite others who are not using the Binance app to start doing so, allowing for a breezy crypto transfer between you and your friend in the future.
How to Send Crypto to Non-Binance Users
Step 2: Enter your recipient’s email address, phone number, or Pay ID and click ‘Continue’.
Step 3: You will be notified if your recipient is not a Binance user. Click ‘Continue’ to move on to the next step.
Step 4: Choose your preferred currency and amount you want to send and click ‘Continue. You can also choose to include an optional note with your transfer.
Step 5: Check that all details are correct and click ‘Confirm’.
Step 6: Once you see a payment success screen, click ‘Done’.
Once you have completed the steps, your sendee will receive a notification in their email inbox or phone, depending on which information you provided in Step 2. In order to receive your crypto, they will have to create a Binance account and activate Binance Pay with the same email address or phone number that you have provided.
How do I get Cash (FIAT) for my Cryptocurrency?
Now that your recipient has received the Crypto at lightning speed, they may be confused on how to convert their digital currency into their respective local hard currency. Localbitcoins is the longest-running and most trusted P2P (Peer-to-peer) local Cryptocurrency exchange in the world. Founded way back in 2012, millions of people around the world have been using Localbitcoins to buy, sell, and exchange Cryptocurrency safely and securely for a decade. I have been personally using Localbitcoins since around 2014, back then it was literally the only way for me to exchange my Bitcoin for cash by meeting up with fellow users around town.
On LocalBitcoins, you are dealing directly with local cryptocurrency users in your region. Think of it as the Craigslist or Facebook Marketplace of Cryptocurrency. Unlike Centralized Cryptocurrency trading platforms, LocalBitcoins allows you to trade directly with another human. You can buy, sell, or trade your bitcoins instantly. LocalBitcoins offers every local payment option depending on what country you are in. For every transaction you make on Localbitcoins, you have the protection of a sophisticated escrow service to ensure the Cryptocurrency and both traders are safe.
Getting started with LocalBitcoins
Step 1: Register with LocalBitcoins
First, you will have to Register an account with LocalBitcoins. You get a free and secure online bitcoin wallet. No additional apps are needed. To sell Bitcoin you need to first send them to your LocalBitcoins wallet. Identity varification may be needed depending on the amount of Bitcoin you wish to transfer.
Step 2: Search for advertisements
Go to the main page and in the search box select the option QUICK SELL. Fill in the form with the amount you want to sell in your currency and choose a payment method. If you’re unsure how you want to be paid, choose All online offers as your payment method. The site will then list all Bitcoin offers available.
Note about payment methods: Some payment methods are considered high risk. Bitcoin transactions are completely irreversible. Once you sell your Bitcoins it’s not possible for you to recover them, even if the buyers payment is reversed. That’s why we recommend you sell with a low risk payment method to experienced users with a large amount of previous trades and 100% feedback.
Step 3. Select an advertisement
From the list of offers, choose one where the trader has a good reputation score and a high amount of completed trades. The response time indicator shows if a trader replies within five minutes (green), within 30 minutes (yellow) or slower than 30 minutes (grey). You can click the sell button to view more information about an offer.
Step 4. Open a trade
After you press the Sell button you’ll see more information about the offer, including the terms of the trade. Read through them before submitting the trade request and if you don’t agree with them you can go back to the previous page and choose another offer.
To start the trade, type in the blue box how much you want to sell, enter a message for the buyer and click the Accept terms and send trade request button to the start the trade.
Once you start the trade your Bitcoins will be moved from your wallet to the trade escrow.
Step 5. Wait for the buyer to pay
After you’ve sent the trade request the buyer will ask you for your payment details (e.g. if you want to sell for a bank transfer the buyer will ask for your bank account information). After you have given the seller the payment information the buyer will pay for the Bitcoins and confirm it to you.
Please make sure that you have received the money into your account before releasing the bitcoins. NEVER EVER release Bitcoins before you have received payment. Bitcoin transactions are irreversible, once you send the Bitcoins to the buyer there NO WAY to get them back, even if the buyers payment doesn’t show up.
Once you have confirmed that the payment has been made you can scroll down the page and select Release Bitcoins. This will send the Bitcoins from the trade escrow to the buyer and complete the trade.
Another method, without using Cryptocurrency
What is Remitly?
Remitly is an online money transfer iPhone and Android app that lets its users send money fast to over 130 countries from 17 countries. They currently have over 5 million users worldwide and have partnered with over 3400 banks. They also offer over 380,000 cash pickup locations in cities and towns all around the world. Remitly specializes in sending cross-border remittances to facilitate the transfer of money between immigrant workers, and their families back home, but there are many other use cases for the app as well.
Remitly charges a low flat rate for quickly sending money abroad compared to its competitors in the banking industry. International money transfers are usually done within minutes, and the cash is available almost imminently to the receiver, as they work directly with banks abroad to facilitate the money transfers.
Remitly’s Competitors that have options for delivery within minutes tend to have higher fees, but Remitly has the best balance between speedy transfers and affordable prices. I find that Remitly most often charges fixed fees of $3.99 for sending money, depending on the country, amount sent, and payment method. This is always cheaper than the fees charged by major financial institutions in my experience.
I find Remitly’s exchange rates do generally have a small markup from just under 1% to just below 3%, but that largely depends on the currency and payment method being used. They’re roughly on par with their competitors, if not a little cheaper in most cases.
Remitly is Best For:
- People who want affordable options for sending money abroad fast and securely, straight from their Android or iPhone.
- People that are hesitant about diving into the world of Cryptocurrency and Bitcoin and using it to send money abroad, which is totally understandable. I normally use Remitly myself due to it being by far, the most convenient option.
Pros of Using Remitly
- Fast delivery: Remitly can deliver money to recipients in most supported countries within minutes if you use their debit card to fund the transfer.
- Cheap delivery options: The Remitly Economy option allows you to send money abroad for fees as low as $3.99 or send over $1,000 for $0 to some countries.
- Promotional rates: First-time users of Remitly will get a significantly cheaper promotional rate for a limited amount of money if they sign up using my referral link. They also get $20 free for their first transfer of $100 or more.
- Excellent customer service: Phone service is available 24/7 in English and Spanish, and live chat is also available 24/7 in English, Spanish and French. Remitly’s FAQ section of its website has a clear list of common questions sorted by category and is available in 11 languages.
- Great App Experience: Remitly’s mobile apps are available for IOS and Android and offer a highly secure and easy-to-use platform for sending money abroad. Everything can be done from within one app, and you can have your money sent abroad within minutes.
Cons of Using Remitly
- Low sending limits: Remitly uses a tiered limit system, with new users starting at Tier 1, which only allows you to send $999 a day, up to $18,000 every 180 days. Users have the option of upgrading to Tier 2 & Tier 3 which offer much higher sending limits. These limits are set in place due to regulatory laws, and you are able to provide additional verification documents to increase your sending limits if necessary.
- Credit card fees: Funding transfers with certain credit cards can cost up to an extra 3% of the transaction amount, which is similar to what some competitors charge and less than others. This credit card fee can be avoided by funding your transfer using a Koho Prepaid Visa
- Long delivery times for the Economy option: Choosing the cheaper transfers that Remitly offers, which use your bank account, can take up to three to five business days for delivery.
- Transfer fees: Compared to using Cryptocurrency, you will end up paying more in fees to send money abroad using Remitly, but the safety and peace of mind will be worth it for those not adventurous enough to get into the world of Cryptocurrency.
Koho + Remitly = No Credit Card Transfer Fees
As a Canadian Digital Nomad, I use Remitly quite often to avoid paying expensive banking fees in South America. I have found that if I use my Virtual KOHO Card to fund my Remitly transfers, it does not charge a credit card fee for some reason. This is just one reason why I love using my Koho Card and app to do 90% of my financial transactions while traveling abroad. Compared to using a typical Visa, AMEX, or Mastercard — using a Koho Card to fund your transfer will save you 1–3% in additional fees.
If you are Canadian, you can read more about why I believe Koho is the best financial tool I have when I am traveling and living abroad.
I hope reading my article was able to clear some things up for you in regards to sending money abroad and sending remittance payments to loved ones. I truly believe these are some of the best options in 2022 for sending money abroad while avoiding expensive and slow international wire transfer services, which have been made redundant by the advent of Cryptocurrency and modern smartphone Applications.
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Thanks for reading,