Let’s review some of the alternatives available in the Electronic Money transfer niche in UK – Transfermate and Tranzfers. Not many people know them, but usually they are much better option than well-known giants like PayPal. Yes, they have some similarities, but they also have a lot of differences.
How they work?
All three are in some way user-friendly – the steps of sending money abroad are explained clearly and simply; they have an instructional videos, showing the clients the steps of sending money so even if you have no experience with payment systems it’s a piece of cake to understand them.
Here comes the differences. The Tranzfers and Transfermate videos start with the registration or log in process and then moving on to how exactly to send money. The videos explain and show at the same time the steps wich, I find, is extremely user-friendly. The main difference is that these two give you the opportunity either to let them convert your amount of money in the currency they offer at the moment of your transaction or let you choose the moment of converting the money by giving you the chance of seeing the exchange rates going up and down. This is a great opportunity for choosing the best rate, but you should also keep in mind that they give you a certain time to think, you can not prolong it for days, which is normal. You will have about 2 min. time to think and select the best rate for you. PayPal doesn’t give you the option to do this. If we must be honest PayPal doesn’t show you even the exchange rate they are working with. Well, they show it, but you must dig a little bit to find it, and even then they don’t specify their currency conversion fee there, you must dig more to find it.
Let’s have a deeper look about the charges for sending money with these three companies. For better visualization let’s say we want to send 1000GBP in USA.
The Exchange Rates
At given point we checked the exchange rates of all three services:
- PayPal – GBP/USD – 1.5205
- Tranzfers – GBP/USD – 1.5633
- Transfermate – GBP/USD – 1.5624
Tranzfers and Transfermate are with much better rate, giving you 42-43$ more than you’ll receive from PayPal. That’s not all – PayPal is loading extra 2.5% the rate which mean that at the end you will get 1482.49$ for your £1000 ~ 80$ less than Tranzfers and Transfermate.
When you want to send larger sums, it’s important to remember that the smallest differences in the exchange rates are from big significance . Think it that way – even 1% rate improvement on £100,000 is a £1,000 gain. And here we have 2.8% exchange rate difference plus 2.5% more loading.
If you have PayPal balance or connected bank account PayPal don’t charge you with fees for sending money. It’s free. However if you send with Credit or Debit card – there is a fee up to 3.9% + 20p (in our case about 47USD) and you can decide if you or the receiver pays for it.
Tranzfers charges a much smaller fee than your local bank would. They charge 15 USD or 7 GBP for each transfer and furthermore, there is no receiving bank fee. They have only this flat fee without the unpleasant surprises.
The fee Transfermate is not specified on their site but they guarantee that their fees are normally less than half the cost of transferring money through high street banks.
To sum up, if you are about to send less than 100 GBP, than better do it with PayPal, because even with the exchange rate differences and the PayPal’s credit/debit cars fee it is cheaper option. In all other situations the specialized companies like Transfermate and Tranzfers take the cake if you want to send money from the UK to foreign country.
Sending money with PayPal takes minutes actually. In these days the speed of sending money is one of the greatest impediments. That is why PayPal appreciates your time. In this manner they are flawless. Actually using PayPal is much faster than for example using your credit card, because all you need to do is to enter your email address and password instead of filling out the number, expiration date, and security code every time.
Once they have cleared funds and the necessary documentation for the money transfer, the amount you want to send will reach the recipient within 24 hours and no longer than 3 business days.
They claim they operate a super-efficient service with automated systems that ensure you a fast money transfer. The exact time is not mentioned, but we are talking about the same time limit as with Transfermate.
We don’t want to say that PayPal is robbing you. They still have one of the best exchange rates, comparable to the banks, they are fast, reliable, and they are good option for payments. But when it comes to sending money – there are just better money transfer options available. Tranzfers and Transmate are two of them.