How Does an Online Global Money Transfer App Work?
14 February, 2022

How Does an Online Global Money Transfer App Work?

You may be wondering how your TangoPay app works. If you have questions about how online global money transfer works and the difference between your regular banking service, you're in the right place. This article will walk you through everything you need to know. So you can make the best decisions for your money.

What's Money Remittance?

To start with, you may have seen the term money remittance used to talk about money transfer.

In essence, money remittance services are businesses that transfer money electronically for customers who need to transfer money abroad. Still, not all global money transfer services are built the same. For example, when you need to send money to family, friends or banks in another country, you want safe and reliable services to protect your interests.

What You Need to Know About New Transfers Work

The way money is transferred on the service you use. First, let's cover the difference between a traditional bank transfer and an online money transfer:

Traditional Transfer

With a traditional transfer using your bank directly, the money is transferred using a series of intermediary banks. This is why it can take several days for your money to arrive if you take this route. In addition, while your bank may offer a lower exchange rate for changing from one currency to another, the price for the transfer can be much higher than if you used a money transfer app specialising in global money transfer. In fact, some banks even charge you for electronic transfer (wire transfer), which can be up to 5% of the money you have sent.

Online Global Money Transfer

In comparison, money transfer apps can offer a cheaper and faster way to send money abroad. This is because they use a web-based or online platform to send money instantly. However, as mentioned, banks often use intermediary services to send money. Consequently, the transfer time for traditional banks is longer than money transfer apps that can send money abroad instantaneously using their online network. An online network means the money goes straight from one account to another electronically.

Often, that money is sent directly to someone's online wallet. TangoPay also offers a broader range of transfer options. Such as:

TangoPay Cash pick-up
Cash pick-up
TangoPay Mobile wallet
Mobile wallet
TangoPay Direct to bank
Direct to bank
TangoPay Account credit
Account credit

You might wonder if it is safe to use an online money service. Or whether it is as safe as a bank. While traditional banking is a safe way to send money, money transfer apps are also a safe option for international money transfers. The FCA (financial conduct authority) regulates payment service providers, ensuring financial service providers operate fairly and money transfers are conducted safely.

Conclusion

To recap:

  1. Money remittance is when you transfer money electronically using a traditional or online banking service and is expensive.
  2. Traditional banking, though safe, can be a long and is also an expensive process
  3. Online global money transfer is cheap, secure, fast and convenient way to send money abroad.

To find out more about what TangoPay can offer, take a look at our services.