Looking through the last article in our Newsvine section about how wire transfers overseas beat the conventional cash transfers, I could not resist writing a defensive-to-offensive article about what better sides cash transfers DO have and why there could not be a competition between the two types of transaction services. First, let us not think of the different money transfer services like just two equal opportunities, one should choose between when needing to send money overseas. There are actually very stable purposes for each of the types one can transfer funds to exist and serve along with any other.
1. I would say that there are different money senders with different needs. Here is a simple example. You are abroad, let us say China, you have no access to your bank account, you have no internet connection available, but you are in a desperate need to send 1500eu to the UK. So what do you do? You cannot give up, and you cannot ask for a bank branch to be opened immediately, SO here comes the abstract company "EasternUnited" with their Bureau right in front of you offering cash transfer services internationally. And that makes them the perfect and the only choice you have to get those 1500eu sent to your.. spouse in the UK. So through this first point of view "EU" gives you the freedom to make a money transfer without any formalities, which usually occur when doing a bank transfer. I guess I don't need to repeat that even you wanted to go through those formalities for a wire transaction, you cannot, just because in many cases you cannot (e.g. lack of bank branch, lack of internet, lack of terminals supporting your CC or the services you need, etc). So in this first case we have no competition too, we just have only one alternative and we use it, and we should be thankful it exists.
2. Not only regarding clients sending money, but also concerned in this whole process of money transfer are people receiving money abroad. After all those funds must arrive somewhere? They cannot be just magically thrown in one's pocket. And okay, you will say receivers have Bank accounts and there is no problem for them to get money received there. Yes, but No. Think of you in the same situation as I described it above. Same location (China), same conditions, but this time you have to receive your 1500eu from the UK. And what do you do? Open a bank account immediately? I think not. Even if you would like to, you cannot, because opening a bank account overseas has its requirements and, in the most cases when a person is on a business trip, believe me, he does not cover them. So what you should do is go the same Bureau of the "EeasternUnited" you went in the previous section and take your money send from the UK just 5 minutes ago. Isn't it great?
I have a few more points to discuss about this, but I would rather save them if there are/is another/more Rounds of this blog/news fight about what type of money transfers one should use.
Regards to all the "wirers",
Ivo
1. I would say that there are different money senders with different needs. Here is a simple example. You are abroad, let us say China, you have no access to your bank account, you have no internet connection available, but you are in a desperate need to send 1500eu to the UK. So what do you do? You cannot give up, and you cannot ask for a bank branch to be opened immediately, SO here comes the abstract company "EasternUnited" with their Bureau right in front of you offering cash transfer services internationally. And that makes them the perfect and the only choice you have to get those 1500eu sent to your.. spouse in the UK. So through this first point of view "EU" gives you the freedom to make a money transfer without any formalities, which usually occur when doing a bank transfer. I guess I don't need to repeat that even you wanted to go through those formalities for a wire transaction, you cannot, just because in many cases you cannot (e.g. lack of bank branch, lack of internet, lack of terminals supporting your CC or the services you need, etc). So in this first case we have no competition too, we just have only one alternative and we use it, and we should be thankful it exists.
2. Not only regarding clients sending money, but also concerned in this whole process of money transfer are people receiving money abroad. After all those funds must arrive somewhere? They cannot be just magically thrown in one's pocket. And okay, you will say receivers have Bank accounts and there is no problem for them to get money received there. Yes, but No. Think of you in the same situation as I described it above. Same location (China), same conditions, but this time you have to receive your 1500eu from the UK. And what do you do? Open a bank account immediately? I think not. Even if you would like to, you cannot, because opening a bank account overseas has its requirements and, in the most cases when a person is on a business trip, believe me, he does not cover them. So what you should do is go the same Bureau of the "EeasternUnited" you went in the previous section and take your money send from the UK just 5 minutes ago. Isn't it great?
I have a few more points to discuss about this, but I would rather save them if there are/is another/more Rounds of this blog/news fight about what type of money transfers one should use.
Regards to all the "wirers",
Ivo
1 comment:
If you can please link me here http://www.speak4money.blogspot.com I also have a question. Right now we are using Moneybookers as means of transfering money from mylot. Do you have any similar service? Tell me more about it.
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