Financial transfers from rich countries to low- and middle-income countries increased by 3.8% in 2023 to reach $669 billion, and the United States remained the first country in sending money home by people working abroad, according to what Forbes magazine reported.
In our Arab world, the Gulf Cooperation Council countries in general, and Qatar, Saudi Arabia and the UAE in particular, stand out as the most prominent countries in sending money abroad by Arab and foreign workers and employees working in them.
In Saudi Arabia, for example, the outward remittance flow market rose by 2.3% in 2023 to reach $41.07 billion, and the market size is expected to register a compound annual growth rate of 1.6% to reach $43.69 billion by 2028, according to the American platform Market Watch recently.
Globally, the total value of remittances by foreign workers reached $857 billion, up from $843 billion in 2022, with expectations of reaching $883 billion by the end of this year.
The World Bank reports that the average cost of sending money internationally is just over 6%, so sending $1,000 to a friend or family back home could cost about $60, Forbes reported.
In this report, Al Jazeera Net presents to you the top 5 ways to transfer money easily and safely online and the best companies used, with the advantages and disadvantages of each, according to a number of specialized websites and platforms such as Forbes, NerdWallet, Bankrate, Market Watch, and others.
1- Wise
If you travel a lot due to work, wanderlust, or any other reason, this is the best way to send or receive money.
Wise focuses on “borderless banking” and makes managing money in multiple currencies easy.
Creating an account with Wise is free, and each section of the bank account can be customized for a specific currency.
For example, if you add a balance in Euros, the bank account comes with a SWIFT number, just like in Europe, and if you add a balance in Sterling, that balance will have its own sort code, and the bank account can hold and manage more than 50 currencies.
Wise offers its own debit card, the “Wise Card,” for a one-time fee of $9, and the account has the ability to convert currencies between balances (for a small fee).
Currency conversion using your card is subject to a minimum fee of 0.41%, ATM withdrawals of up to $100 per month are free, while anything over that is subject to a 2% fee.
The time it takes to receive funds depends on the debit card and how you add the funds, some are available within seconds.
- Transaction limits
There is no limit to the amount you can receive and hold in all currencies other than USD. For sending, most US states have a daily limit of $50,000, and a maximum of $1 million for domestic transfers.
- Areas of operation
Most countries of the world, including many Arab countries such as Morocco, the Emirates and Egypt.
2- Paypal
PayPal outperforms other money transfer apps because of its accessibility and choice of payment methods. Money may be received instantly into the recipient’s account and can then be transferred to a bank account as soon as possible.
Another major advantage of PayPal is that if the recipient does not want to link to a bank account, they can use their PayPal balance to spend the money because the platform is widely accepted as a payment method.
PayPal account holders can send money to friends and family through the app or online via a web browser. Account holders can send money through a variety of payment methods, and recipients must also have PayPal accounts.
Sending money internationally to family and friends via a PayPal balance, linked bank account, credit card, or debit card is subject to a fee of 5% of the amount sent, with a minimum fee of 99 cents, and a maximum of $4.99.
The funds may be received immediately in the recipient’s PayPal balance, and can be transferred to their bank account as soon as possible.
- Transaction limits
There is no cap on the total amount of money that can be sent to verified accounts, but it is limited to $60,000 in a single transaction.
- The areas in which he works
Most countries of the world, including many Arab countries such as Jordan, Morocco, Egypt, Tunisia, Somalia, the Arab Gulf countries, and others.
3- WorldRemit
When sending cash internationally, it is important to pay attention to exchange rates and fees. Not every service charges the same amount, and some exchange rates vary from service to service.
WorldRemit has some of the lowest money transfer fees out there, and users can send money to people in over 130 countries around the world.
You must have an account to use WordRemit, and registration is free.
Transfer fees vary and depend on where you are sending the money. For example, it costs $2.99 to ship $50 from the US to a Walmart store in Mexico.
Most pick-ups and deliveries are instant.
- Transaction limits
Depends on the country you are sending money from. If you’re sending from the US using a debit, credit, or prepaid card, you can send $5,000 per transaction up to a maximum of $9,000 per 24 hours.
- Areas of operation
It operates in more than 150 countries around the world, including many Arab countries such as Egypt, Morocco and Tunisia.
4- Apple Pay
If you have an iPhone or Apple Watch, this is a great option for sending and receiving money to and from other Apple users via a quick text message.
To use this method, you must set up Apple Pay in your Apple Wallet, a process that requires linking a debit card to fund the transfer.
Next, tap the Apple Pay icon in the Messages app on your device to send money via text message to one of your contacts, and the transferred funds will appear in the recipient’s wallet.
There are free ways to send and receive money, but Apple will charge you a 1.5% fee for instant transfers. The minimum fee for instant transfers is 25 cents, and the maximum fee is $15.
Instant for some fees, as described in the previous point.
- Transaction limits
A maximum of $10,000 can be sent or received within a 7-day period.
- Areas of operation
It works in a large number of countries around the world, including many Arab countries such as Morocco, Jordan, Palestine, and the Arab Gulf countries.
Google Pay
The Google Pay app is available in the Google Play Store and on iOS devices for those with a Google account, and can be used to send and receive money between friends and family, as well as make contactless purchases in stores. Or online.
Like other options, money coming in and out of Google Pay comes from a linked debit card or bank account you’ve entered into the app.
- Transaction limits
Within a 7-day period, Google lets you send up to $5,000 if your identity is verified (or $500 if your identity is not verified).
The application does not support credit cards as a means of sending money.
- Areas of operation
It works in most countries, including many Arab countries such as Egypt, Jordan, Lebanon, Tunisia, Morocco and the Gulf States.
