Technology has made things more convenient and faster. One no longer has to visit a bank to send money to loved ones abroad, make a purchase, etc. Using money transfer apps, one can send funds locally and internationally within minutes or hours. Transfers are processed quickly, fees are nominal, and there is no heavy paperwork. However, the process has its disadvantages. Read on to learn about the money transfer types and the pros and cons of online money transfers.

Money transfer types
Here is a list of common money transfer types:

Internal transfers
Under this, one sends money to a US bank savings or checking account you own.

External transfers
In these, one sends money to a savings or checking account owned by one at another financial institution.

International wire, domestic, or digital money transfers
These services transfer the money to a savings or a checking account one does not own. The senders can process the digital wire through online or mobile banking.

Send money via third-party apps
It helps send money via one’s account to the recipient’s registered email address or phone number. The app sets up the recipient’s account to receive funds.

Online money transfer pros
Some pros associated with local or international money transfers are as follows:

Extensive use
Online money transfers cover everything from payments for taxes, school fees, and utility bills to international transfers from friends and family. So, the money transfer apps let one transfer funds, pay bills, review recent transactions, check account balances, and block ATM cards., all via one’s smartphone. Thus, everything one can do through the bank is at one’s fingertips with mobile payments.

Cheap
Online money transfers can help avoid high exchange and interest rates of banks, which are typically steep in some remote areas of Canada or the USA. This service is offered to customers at an exceptionally low or even zero cost, ensuring affordability for mobile transfers.

Safe
Online transfers are just as secure as bank transfers. Consumer Financial Protection Bureau (CFPB) guards the local and international money transfers. Every transaction is PIN-protected, and the mobile money maintains a record of every transaction.

Availability
One can perform a mobile transfer at any time of the day. It is a 24/7 service, and one can make multiple transactions or payments in a day. Moreover, mobile transfers eliminate the worry of red letter days and bank holidays.

Ease of access
For an offline transfer, one needs to visit a bank and update one’s passbook to track the balance in one’s account. However, online transfer apps let individuals view the account balance anytime and anywhere.

Simple interface
Most money transfer apps have a straightforward and easy-to-use interface. So, in a few clicks, one can transfer money to someone in need in any part of the globe. Typically, these apps are linked to the sender’s personal bank account.

Easy to open accounts
These days, it is easy to open an online banking account with most government, private, and international banks. They offer several straightforward options to cater to customer’s needs. Consequently, online money transfer is much easier than handing over money in person.

View live transactions
One no longer has to keep dozens of bills and receipts, as all online mobile transactions are saved in the app’s memory. Hence, one can view them at any time.

Benefits through credit
Several online money transfer apps offer benefits for completing some credit goals. One can earn points and be notified about the loan prospects if one is a regular user.

Online money transfer cons
Some cons associated with local or international money transfers are as follows:

Security
Though sending money online is safe, some users can receive fake messages called smishing asking for bank details. Consequently, the users may fall prey to theft and scams.

Availability
One may need to download several bulky apps on the phone for online money transfers . Some of these apps may be available only in high-end smartphones.

Difficult user interface
Without experience, a user may encounter difficulties conducting a successful online money transfer due to a complicated money transfer app. Thus, a user must possess basic knowledge of smartphones and their functionalities to make a payment.

Nonavailability without the internet
Finally, one cannot complete an online money transfer if one does not have a stable internet connection. In rural and remote areas, the internet accessibility may be unstable.

Bottom line
These days, in contrast to traditional banking, mobile transfers are increasingly popular globally, as they are more accessible, secure, rapid, and cost-effective. However, they require a high-end smartphone, and the potential long-term costs may be off-putting. Moreover, customers must be cautious against scams. Despite all these drawbacks, money transfer agencies still look at mobile payments as the future for international money transfers.