What are the ways to send money abroad?
- Traditional money transfer companies (WU, MoneyGram), which charge an average of 7.3% of the amount sent, and sometimes up to 12.4%.
- Players that operate only online (Transferwise, WorldRemit), which on average charge slightly less.
- Traditional banks, with an average fee of 6.9% of the amount sent.
- Finally, La Poste, with an average fee of 5% of the amount sent. Traditional money transfer operators (MTOs) as a whole would hold 60% of the market.
Sending money: pricing that is opaque most of the time
110 million euros: that is the amount of hidden exchange fees taken on individuals’ money transfers in 2017 by money transfer companies. Where do these fees come from?
Take a concrete example: you want to send money to Morocco. If you use Western Union, for 100 euros sent:
- The beneficiary receives 1,029.57 MAD
- Real exchange rate: 100 euros = 1,067.27 MAD
- Fee taken on the exchange rate: 37.7 MAD, or 3.53 euros
Sending money: a cost that varies by destination country
The average cost of sending money can vary a great deal depending on the destination. For example, sending 170 euros to Morocco costs 8.30 euros, or 4.9% of the sum sent. For the same amount sent to Algeria, the transfer is charged at 16.20 euros, or 9.5% of the amount.*
The price of a bank transfer from France to another country is thus more than 10% higher than the average price in other European countries.
Make it simpler to send money to loved ones abroad with PayTrip
Do you regularly send money to loved ones abroad? Do you want a solution that is simple, clear and free of hidden costs? PayTrip connects family members financially with a payment account and Visa cards. Depending on the destination, you can send to an IBAN, a PayTrip account or an external bank card, or give your loved one a Visa card. The PayTrip app lets you load your card and your beneficiaries’ cards with the amount you choose. When the transfer is between PayTrip accounts or onto a Connect card, the money can be available immediately.
Want to know more? See our offer.
*UFC-QUE CHOISIR. International money transfers: a lawless zone with prices of “immoral cost”. November 2018.