Money is a highly important component of people's lives in this era. People are always searching for ways to solidify their financial stability. Remittances are sent by people from abroad to their home nation for enhancing their financial condition. Remittances have become an intrinsic part of the economies of several nations like Mexico, Philippines, China and India. Indians, who reside and work in different nations of the globe, have the habit of remitting money to their bank accounts in India. They do this also for aiding their loved relatives in India so that they can look after themselves and pay their home maintenance bills. The economies of the abovementioned countries are dependent on remittances in differing degrees. Remitters have, in the last few years, been increasingly relying on online remittance service for despatching money to their homelands.
Online remittance service has gained copious popularity primarily because of its speediness, efficiency, safety, reliability and transparency. Its state-of-the-art encrypted technological systems safeguard well the confidentiality of the transactional details of the customers. Remitters greatly appreciate this. Senders are regularly updated by the online remittance service providers about the status of their money transfers. Updates are given either by emails or by SMSes, which makes the customers feel that they are in control of their money transfer. The customer support executives of these online remittance service providers are quite proficient and provide useful data to the customers to resolve their doubts regarding the online money transfer process. Online remittance service providers offer competitive exchange rates and levy minimal/zero transfer fees. Thus, the transaction is cost-effective, which matters a lot for the remitter. More money of his reaches his recipient in India or reaches his bank account in India.
Demerits of traditional remittance methods
Traditional remittance methods like money transfer agents, money orders, demand drafts and bank cheque transfers take a few weeks to reach the beneficiary. This is the case most of the time. Thus, when the option of instant money transfer through the online platform is available, most remitters prefer to opt for that instead of the conventional methods. All you need is access to the Internet. Then, a remittance can be initiated by you sitting at home. You have to register yourself with an online remittance service provider though and provide your personal/bank account information to initiate a transaction. Also, the personal/bank account data of your recipient needs to be given by you. Then, the transaction can be launched.
If one uses a conventional remittance method like bank cheque transfer, your money transfer may be placed on hold by the financial institution for two-three weeks, after which the transfer will occur. Different financial institutions have varied sets of regulations, which they have to follow for initiating remittances. Money transfer agents are not available round-the-clock and throughout the week. Also, there is the possibility of your money being lost in transit or being misplaced by such money transfer agents. You will not be able to always track the status of your money transfer via money transfer agents. It depends on the availability of the agent. The agent tends to charge a higher transfer fees/service fees and the exchange rate offered tends to not be competitive. Thus, the transaction is not a cost-effective one for the remitter. You will have to pay a visit to the financial institution and do tiresome paperwork, after which your money transfer will be launched.
As opposed to all this, online money transfers are user-friendly, with no paperwork at all. It is a paperless money transfer.