There are several methods of sending money home and involve traditional companies and a new era of innovative remittance solutions.
The traditional solutions include:
Western Union- a very popular solution for cash to cash remittances. WU have enormous presence around the world with over 500,000 locations worldwide. They are notorious for immediate transactions but are also known to be a costly solution for forex.
MoneyGram- a popular solution for cash to cash remittances. MoneyGram is a popular money transferring solution at independent franchises who convert currencies and provide remittance solutions.
Bank Transfers- transferring funds directly from your bank account in one country to another can be costly if you are sending a relatively low amount ($500). Banks tend to offer bad exchange rates and the service fee is unproportioned to the amount sent. The overall fee using SWIFT bank transfers would be highest out of this category.
Brick and Mortar shops- many of these shops use independent franchises and usually only have about one or two stores around a region. This group will usually offer a good deal for remittances but are sometimes hard to reach and far from the customer's living area.
But, in the Philippines where local pawnshop and jewellery stores like Palawan Pawnshop, M.Lhuillier, Cebuana Lhuillier, etc. ventured into remittance business, it significantly enticed Filipino remitters from all over the world because of fast, reliable and secure remit transaction. These pawnshop and jewellery stores started as brick and mortar shops until their remittance business flourished into something that people, especially OFWs patronizes. The end result is, you can find these shops in every street or corner of every city and municipality all over the country. Note: There are millions of Overseas Filipino Workers all over the world. No wonder these kind of businesses are very successful in the Philippines.
Innovative remittance solutions refer to companies who chose to operate an online business. These companies need to be licensed exactly the way traditional suppliers are. They offer several benefits opposed to traditional suppliers as they tend to be cheaper, easier to use, higher availability and payment solutions that do not exist within traditional suppliers. This could be financial history tracking, remote bill paying, mobile top ups and more.Innovative remittance solutions:
Xoom.com - The most popular online remittance provider. Xoom has been operating in the US for over a decade and supply customers with a fast, low cost remittance solution.
WorldRemit.com – The Company has been operating for several years and is a popular solution for senders in Europe and destinations in Africa. They have recently expanded their products and offer solutions such as mobile top ups and other payment options.
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