When it comes to transferring money online, people are usually guarded. I do not blame you! Exercising caution is always acceptable. There are some security and reliability issues to be taken cared of. However, you must filter out the myths from the facts.
On that note, here are four misconceptions about online remittance services:
Myth #1: Bank Transfer Is Cheaper Than Online Remittance Services.
Consumers who are not aware of the convenience that online remittance services can bring may have a preconceived notion that it is more expensive than bank services. This was recently disproved by none other than the World Bank. According to the prestige institution, it is typically less costly to send funds thru remittance companies than thru banks. Banks are not only limited to wire transfers, but they also have higher operating expenses.
While, remittance services were made to send small yet frequent amounts of money to overseas families. This is why they charge a cheaper service fee. Let me provide you with an example to put things into perspective.
Say you are planning to send AUD50 from Australia to the Philippines. The exchange rate AUD 1: PHP34.94 on the MoneyGram website. This equates to about PHP1,747. You would then be charged with AUD11.25 (i.e., about PHP393.08) for the transfer.
If you will send this money via online remittance service like iRemit, the exchange rate used by the company is AUD 1: PHP36.60, so that translates to about PHP1,830. This is subject to the service fee of AUD7 (i.e., about PHP256.20). Can you see the difference now?
Note: These rates and fees are accurate during the time of writing.
Myth #2: Creating an Online Account Takes Time.
There is nothing more tedious than completing a service form with a length of more than two pages. You may think that this process applies to online accounts as well. Well, think again! Modern technology paved way for quick forms.
For instance, creating an iRemit account is as easy as registering to Facebook. Start by providing a few details via the website or the mobile app. Returning customers can log-in to the website and select from an existing list of recipients. It is that simple!
Myth #3: Online Remittance Industry Represents a Limited Scope.
Online remittance services became the issue of heated debates in its earlier years. Since 2000, the industry has grown so much with the help of the advances in technology. The World Bank estimates the migrant remittances’ annual growth of 4% for the period of 2016-2017.
Consumers are relatively price-sensitive as they are willing to pay more as long as the sending method is easier and more convenient. The user-friendly processes of the online remittance services draw more Overseas Filipino Workers.
Myth #4: Customer Service Is Non-existent.
Not everyone is a digerati or a tech-wiz. This is why most users are reliant on the team of customer service. Online remittance services may eliminate the need to walk down a physical office, but it does not disconnect you from reaching a company representative. There is a wide array of tools that can help interact with a reliable customer service representative. These tools include a hotline and a live chat.
iRemit, for example, has a chat box at the lower right-hand corner of the screen. This ensures that your concerns are addressed with a few clicks.
We debunked some of the outdated perceptions on online remittance services. Do not let these misconceptions stop you from exploring quicker, safer, and cheaper ways to transfer funds. Your loved ones are counting on you!