In today’s world, finding cheap ways to send money to Africa is key. Many people send money to support their families. But, old ways can cost a lot. The World Bank says sending money through banks can cost up to 13.40% of the amount sent, with fees around $45.
Looking for cheaper options is now a must. Services like Wise, Remitly, and Western Union are becoming popular. They offer lower fees and better exchange rates. Wise, for example, has fees under 1% for bank transfers, cutting down costs a lot. Knowing about these services helps you save money on your transfers.
Understanding International Money Transfers
International money transfers send money across borders. People and businesses use banks, online services, and remittance companies for this. They help support family members abroad, pay for services, or conduct international business.
There are many ways to send money. Bank wire transfers are common and use the SWIFT network for global transactions. Online services like Wise and Remitly offer quick and cheap transfers. Western Union allows you to pick up cash at local agents.
It’s important to know how international money transfers work. Fees and costs can affect how much money you get. Banks often charge high fees, from 5 USD to 75 USD. They also apply exchange rate markups, making costs higher. But, services like Wise charge between 0.25% and 1.75% per transfer.
When comparing fees, look at both transaction costs and exchange rates. Banks charge a processing fee of $30 to $50 for outgoing transfers. PayPal charges a 2.9% transaction fee plus a fixed cost. OFX offers fees between 0.4% and 1%, which is lower than many banks.
To make smart choices, use comparison platforms like Monito. They compare over seven providers, showing average fees around ±0.59%. This can save a lot, mainly for those who send money often. Here’s a look at fees from different providers:
| Provider | Total Fees | Transfer Speed | Transfer Limits |
|---|---|---|---|
| Wise | 0.25% – 1.75% | 1 – 2 business days | $1 to $2 billion |
| Remitly | 0.5% – 2% | 1 – 5 business days | $1 to $2 billion |
| WorldRemit | 1% – 2.5% | Instant – 3 business days | $1 to $2 billion |
| Western Union | Varies | 1 – 5 business days | $1 to $2 billion |
| Revolut | 0.2% – 2% | Instant | $1 to $2 billion |
| XE | 0.9% or more | 1 business day | $1 to $2 billion |
| OFX | 0.4% – 1% | 1 – 5 business days | $1 to $2 billion |
Guide to Cheapest Way to Send Money to Africa
When looking for the best apps to send money to Africa, fees and service quality matter a lot. Remitly and WorldRemit are top choices because they offer low rates and reliable service. Remitly is known for being very affordable, making it a great option for sending money to Africa.
Wise and Xoom also offer good features for users. Wise is known for clear fees and real exchange rates, so you know what you’ll pay. Xoom, a PayPal service, is fast, often sending money in minutes.
OFX is another good choice, with no fees for sending USD internationally. It uses 115 local bank accounts to avoid international fees. Most transfers with OFX happen quickly, the same day or in 1-2 business days.
M-PESA is a digital payment platform in East Africa, launched in 2007. It supports everyday transactions in countries like Kenya, Tanzania, and Ghana. You can get global payments through Western Union and WorldRemit. Wise makes sending money to M-PESA accounts in Kenya easy from the US.
Using Remitly, WorldRemit, OFX, or M-PESA, it’s important to know the average cost of sending money abroad. It’s usually around 6% of the total amount sent. By checking out these money transfer options to Africa, you can choose wisely.
Tips for Saving on Money Transfers
Looking for ways to save on money transfer savings can make a big difference. Start by comparing exchange rates online. Many online services offer better rates than banks. This way, you can find cost-effective money transfers that fit your budget.
Choosing local bank transfers over credit cards can save you money. Credit cards usually come with extra fees. But, direct bank transfers are often cheaper. Knowing about different transfer options and their costs is key to saving.
Don’t forget about referral programs. Services like Afriex let you earn up to $20 for each referral. These programs not only help you save but also grow your network. By taking these steps, you can find more affordable ways to send money.
