- Use promo code 3FREE to get three free transfers
- Easy to use with round-the-clock help
- Get cash to family and friends in minutes
Peer-to-peer technology offers a safe and affordable money transfer option and an attractive alternative to sending money overseas via your bank. Peer-to-peer transfers, also referred to as P2P transfers, allow people to effectively trade currencies with one another, leading to better exchange rates and lower fees when you need to send money overseas.
Once you’ve decided how much money you want to transfer overseas and where you would like the funds to go, you can transfer the funds to a peer-to-peer money transfer company such as CurrencyFair or Transferwise. The transfer provider will then look to match you up with someone sending money in the opposite direction — for example, if you’re sending £1,000 to France, you’ll be matched with someone looking to send an equivalent amount of Euros to the UK. This usually results in better exchange rates for consumers by cutting out the middle man.
Caroline wants to send £1,000 to her boyfriend in Germany to help him get through a rough patch financially. But when she approaches her bank about sending the transfer, she’s disappointed to learn that their exchange rate is well below the current mid-market rate and their fee is surprisingly high for a simple overseas transfer. She decides to compare her bank’s prices with those offered by a specialist peer-to-peer money transfer company to see whether she can find a more affordable way to help out her boyfriend.
|Bank (NatWest)||Peer-to-peer transfer company (Transferwise)|
|Exchange rate||1 GBP = 1.09 EUR||1 GBP = 1.149|
|Transfer method||International wire transfer||Online peer-to-peer transfer|
|Processing time||1 working day||1 working day|
|Amount received (in EUR)||1,085 EUR||1,143 EUR|
As you can see, Caroline can send an extra €58 to her boyfriend using the P2P transfer service instead of her bank, while she can also save £0.50 in transfer fees.
You’ll need to take the following features and questions into consideration when shopping around to find a trusted and reputable peer-to-peer transfer provider:
Opt for a service that is trustworthy. For example, Transferwise is fully authorised by the UK Financial Conduct Authority. It’s investors also include Sir Richard Branson. Since you’re exchange money with a community, you need to ensure your funds are guaranteed and that you’ll get your converted currency back.
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