By Joyce Morse for SafeCashTransfer.com
Online money transfer is a modern way of wiring money, but it uses electronic funds transaction or EFT through a bank. You might use EFT to pay bills such as a credit card or utility payment when you authorize a payment through your bank or at the payment website.
Transferring money online works the same way, but it is for money to be sent to a business or individual instead of paying a bill.
Why the growth in money transfers and more importantly, why you should you care about them? It is becoming more likely that you will at some point either need to send money or receive money from someone. The easiest way to do that is by using an online money transfer service.
One of the primary reasons for growth in the online money transfer business is due to the fact that more employers are hiring employees outside of their city or state. They may even work with employees or contractors from another country. These employees need to get paid and sending a check in the mail has many negatives. The check takes too long to reach the destination and it takes too long to clear to make funds available for people that need the money for living expenses.
To solve this problem, introduce the money transfer. While it’s convenient for the sender to initiate payment after services are rendered, it’s even more convenient for the recipient to get within hours or days. Instead of waiting weeks, they can use their money right away.
Another reason that money transfer services are growing is due to increased online purchasing. People no longer are limited to shopping in their own city or state; they can buy from anyone anywhere. One of the safest ways to send and receive payment without providing sensitive information is through PayPal or other online payment services. The money is then transferred from the buyer’s account to the seller’s without giving out any bank account or credit card information.
The security provided by these services has helped the online shopping community to grow. People feel safer to buy over the internet when their information is kept secret by payment agencies. This is especially true when you are dealing with a business or individual that you have never heard of before. Sites such as Ebay use this payment method for many of the transactions between buyers and sellers.
It is expected that this method of payment for goods and services will continue to grow at a fast pace both because of international employment and online purchases. The newest trend is with mobile applications that allow money transfers. Many companies are adding this into their services to attract and retain customers that spend more time on their smart phones than on their computers.
As the growth continues, online money transfers will become more common. If you haven’t already used this service, it is likely that you will in the future.