In the era of globalization, there is ample reason why we are engaged in the transfer of money internationally. There are lots of people who work outside their country and cannot move on the monthly or short term basis to their home. For that concern, they need to move their money to their families. Another concern why people need to send money internationally is the international purchase; globalization has brought the whole world so close that we can only by sitting in India purchase any product or service from the USA and for that purchase, we need to pay to a seller. Another reason why people are engaged in international money transfer is the global transaction between the governments of two countries. Along with the above said, there are numerous reasons for engaging in international money transfer.
With the increasing demand for international money transfer, one thing which has to be up to the mark is the security of the payment and regulation of the international money transfer process and transaction. Unlike the domestic money transfer, international money transfer is regulated by the different rules and regulation in the various countries.
Money transfer service facilitator has to follow the rules of the country in which it is operating its business.
Let’s talk about the two giant players in international money transfer which are Western Union money transfer and the new but very strong baby in the battle field, PayPal. When it comes to transferring the money from one country to another country, the very first name come into mind is Western union Money Transfer which we are familiar with very long time. With the changing market scenario and technology, a new money transfer method emerged is PayPal. These two players are kings of the market. But along with these two, there are latest gateways through which people can send their money efficiently and with hassle free processes such as M Pesa, Instarem, and many others. They have made transfer money internationally a matter of left hand. There are many such remittance companies in Singapore, Australia, USA etc which helps in transferring money and play a major role in the international money transfer.
Being a customer we think that front line players are the ultimate engaging organization in transferring money internationally, but the truth is that these are only the front line and there is a well-defined process and controlling body for tackle the international money transaction.
With different country, there are different agreements and business terms of this service facilitator all around the world. In one country, the service provider is working as a bank, but it might not be providing the banking service but the money transfer services.
In the back scene of the picture, there are different controlling and operating organization for you international money transfer so that there will be no harm to your money and it can reach safely and fast to your loved once. One of the leading organizations which support these front liners is SWIFT (Society for Worldwide Interbank Financial Telecommunication. These organizations facilitate the communication between the banks all over the world and facilitate the safe transfer of your money.
The reason why these organizations are in between you and your bank in case of international money transfer is cyber fraud. By using the services of these organization and method, you do not need to provide your bank account to for any international transaction; you just need to provide your SWIFT ID for transferring money internationally. These methods keep your banking safe and secure.
SWIFT does not facilitate the transfer of money from one country to another country, but play the role of transmission. It transmits the request of money transfer to the receiver bank. It maintains the communication between both banking institutions. The Western Union and Paypal and other international remittance money transfer service providers such as Instarem transfer the money on their ground on the request of the money sender.