The world of work has certainly seen some changes in recent times. As technology has progressed and developed, it has become more and more common for companies to allow employees to work remotely. The growth in remote working has been accelerated during the Covid pandemic where home working became a requirement. Many got a taste for this and have no desire to return to offices.
People have realised that if you are able to work from home in the UK, there is no reason why you can’t be based anywhere in the world. This has seen an increase in businesses employing people who live abroad. While the technology makes this working setup easy, a major consideration for businesses is just how they are going to pay these employees.
At MoneyTransfers.com you can compare the different money transfer providers to find the one that best suits your needs and here we are going to give you the information that you’ll need to make an informed decision.
How can I send money abroad?
Every single day transactions are made that see trillions of pounds being sent around the world. These transactions see funds being sent from businesses to businesses as well as being sent to individuals. Of course, these also include businesses who are looking to pay employees who are based in another country.
To send money in any of these circumstances, you will need to use either a bank or a money transfer service. Regardless of the option you go for, these organisations will need the details of the person you are sending the money to and will need to know how much you are going to send.
When the money is sent, the bank or transfer service that you are using will convert your funds into the currency that the recipient needs. These transfers can be made through mobile apps, online, in person or on phones. The method used will depend upon the service that you use.
How will my employee receive the money?
How your recipient will receive the funds will depend upon the service that has been used. There are differences between using a bank and money transfer services and there are also differences between the different companies that offer money transfer services. Generally, your employee will be able to receive their money in one of the following ways:
- Into their bank account
- Using a mobile wallet
- Cash pick up
- An airtime top-up
When you are considering how you are going to pay your employees, you need to consider the way in which they can receive their funds. Do the options work for them? Do the options provided allow your employee to access their money quickly? Once you have taken on a talented employee, it is important to do all that you can to retain them.
As a business, another key consideration about how you will send funds, and how your employee will receive them, is the cost. There are substantial differences in the costs involved depending on how you choose to send money and you need to be ensuring that you are paying as little as possible.
Should I use a bank or an online money transfer service?
How you choose to send money to your employees will be a matter for you as a business owner to decide. However, it makes sense that you will be looking to minimise costs as well as ensure that the service is reliable and safe. While many people will automatically opt for a bank because it is familiar, they may be missing out on what a money transfer service can offer.
Some points to be aware of when looking at online money transfer services are:
They are secure
While banks may be known for their security, the reality is that online money transfer services will match this. They follow what are industry-standard measures to keep your money, and your details, safe. This means that encryption will be used, there will be SSL certificates, and you can expect two-factor authentication.
Regulation
Money transfer services are regulated by the Financial Conduct Authority. This means that they are obliged to follow a host of rules and regulations that all benefit you, the user.
You can save on costs
Banks are known as being a more expensive option when it comes to sending money abroad. If you choose the right money transfer service, you will find that you save on costs and fees. You will also usually find that the exchange rate is more favourable.
The costs that you will typically come across are:
- Transfer fee – this may be a flat fee or it could be a percentage of the money that you send. With the latter option, the more you send then the more you will pay
- Exchange rate markup – this is a fee that is added to the exchange rate and is how financial organisations make their money. The mark-up charged by banks will usually be higher than that charged by money transfer services.
Speed
While banks may have moved along slowly in terms of technology, money transfer companies tend to be at the cutting edge. What this means for you is that your money gets to where it needs to be as fast as possible. This is usually much quicker than it would be by using a traditional bank transfer.
Ease
If you want to be able to send money abroad in a way that is easy and convenient then money transfer services are the answer. These will usually allow you to do all that you need directly from a mobile app.
Final thoughts
Banks were once the go-to organisations when it came to transferring money abroad. This makes sense given their role and the fact that they carry names that we are all familiar with. However, if you are looking at sending money overseas on a regular basis, such as when paying employees, it is important to realise that banks are not your only option.
By exploring the various money transfer services that are available you can ensure that your employees receive their pay quickly and securely while you save your business money.