How You Can Use Peer-to-Peer Money Transfer Services to Your Advantage

Save money and enjoy fast processing times when you send money overseas using a peer-to-peer money transfer service.

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Although international money transfers were traditionally conducted via banks, it’s now possible to take advantage of peer-to-peer banking services for money transfers. These services provide networks where people can share access to currencies without the need of a central server, allowing you to cut out the middleman.

As a result, the money transfer process is simplified, and you can save more. You can use the table below to compare peer-to-peer money transfer services based on fees, minimum transfer amounts and transfer speed. If you’re interested in finding out more about a transfer service click ‘More’, or if you’d like to open an account click ‘Go to Site’.

Compare peer to peer money transfer services

Rates last updated February 18th, 2020
Name Product Min. Transfer Amount Transfer Speed Services Description Online Transfer Fee Rate Amount Received
TransferWise International Money Transfers
SGD 1
1 - 2 days
Online
Make online transfers with transparent exchange rates, low fees and low minimum amounts.
WorldFirst International Money Transfers
SGD 2,000
1 - 2 days
Online, Phone
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.
The ‘Rate’ and ‘Amount Received’ displayed are indicative rates that have been supplied by each brand or gathered by Finder.

Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention “Finder” before you commit to a brand.

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How do peer-to-peer money transfers work?

The process of a peer-to-peer money transfers (also known as a P2P money transfer) is simple. First, you need to select how much money you wish to transfer and where you’re sending it. You can then upload your funds to your money transfer provider, which will then convert your money at the mid-market rate and match you up with a person sending funds in the opposite direction.

So if you’re sending money from Singapore to the United States, you’ll be matched with someone sending funds from the United States to Singapore. This allows customers to cut out the middlemen in the exchange—the banks—and enjoy better exchange rates plus lower transaction fees.

Peer-to-Peer vs Bank

Lauren wants to send $1000 to her mother in the UK. In order to find the best possible money transfer deal, she compares the services offered by major Singapore banks with a peer-to-peer money transfer service like TransferWise or CurrencyFair. The results can be seen in the table below.

BankPeer-to-peer money transfer service
Amount transferred$1000$1000
Exchange rate£0.55£0.56
Fee charged$25$6
Amount received£536.25£553.03

As can be seen in the example above, if Lauren sent her funds using a peer-to-peer service she would be sending an extra £16.78.

How do I compare peer to peer-to-peer money transfer services?

You’ll need to take the following features into account when comparing peer-to-peer money transfer services.

  • Exchange rates. The exchange rate is a very important factor when determining how much money you can save, so look for the company that offers the best rates. However, keep an eye out for companies that entice you with great rates but then slug you with exorbitant fees.
  • Fees. Make sure you’re aware of all the fees attached to your transaction. Does the company charge a flat fee or is it a percentage based on the amount you’re transferring? Is the fee waived entirely if you transfer more than a certain amount?
  • Minimum and maximum transfer amounts. You’ll need to check how much a company will allow you to transfer, as minimum limits might be too high for some and maximum limits may be too little for others.
  • Transfer methods. Compare whether your transfer can only be lodged online, or whether there are phone and in-person options available as well.
  • Other extras. Compare whether providers allow you to lodge forward contracts—where you lock in an exchange rate for a transaction that will occur at a later date— or limit orders, which is where you lock in a minimum exchange rate and the transaction is not complete until the market fluctuates to your chosen rate.
  • Customer service. Is the company known for providing excellent customer assistance? Is there an online help centre and live chat available? Can you email or phone for support, and what are the operational hours for each provider’s support centre?
  • What are the currencies available? You’ll need to compare which currencies each provider offers and what destinations you can send money to.

What are the pros and cons of using a peer-to-peer money transfer service over a regular service?

Pros

  • Better rates. Peer-to-peer money transfer services usually offer better exchange rates than banks.
  • Lower fees. You’ll typically pay less to transfer money via one of these providers than you would through a bank.
  • Fast. Peer-to-peer money transfer services regularly offer faster processing times than banks, with transfers often completed within one business day.

Cons

  • Supported currencies. While more supported currencies are added all the time, peer-to-peer money transfer providers are relatively new, so they have yet to offer the same number of exotic currencies and transfer destinations as major money transfer services.

Are there any risks?

When you’re making an international money transfer, it’s important to keep an eye out for exchange rates and fees. Poor exchange rates can eat up a big chunk of your money if you’re careless, while hidden fees can be a nasty surprise if you don’t read the fine print before lodging a transfer. It’s also essential that you ensure you are dealing with a reputable company. Do your research before committing yourself so that you don’t end up as the victim of a dishonest provider.

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