About XARE
March 3, 2023

Low-Cost Ways to Transfer Money

Here are some quickest and easiest ways to send money to friends and family without leaving the house

International money transfer is a huge industry. Whether it is businesses transferring money to their suppliers or individuals sending money to their families, international money transfer caters to diverse user groups. Specifically, remittances or money transferred by a foreign worker to their family in their home country forms a large chunk of international money transfers. In this blog, we discuss the different ways of transferring money abroad and the challenges associated with these methods.


There are three parties involved in an international money transfer:

· The sender of funds

· The receiver of funds

· The provider of money transfer services

The sender of funds could be an ex-pat or a migrant worker who is working away from their home country. The receivers of funds are the family/friends of the sender. There are several money transfer service providers, such as banks, online services, post offices, and money transfer apps.

Ways to Transfer Money Abroad

ways to transfer money abroad

Here are some of the common ways of transferring funds internationally.

Bank Transfer

All major banks provide international funds transfer services. The sender can instruct the bank either by visiting the branch physically or through a phone/mobile app. Banks charge a fixed fee for transfer irrespective of the amount being transferred. For example, some banks may charge a flat fee of $50 for money transfers. Those sending remittances of small amounts may find such a flat fee unaffordable.

Online Money Transfer Services

Several online money transfer services facilitate international money transfers. All such service providers charge a fixed fee. Additionally, they may charge hidden fees for currency conversion, which can go up to 3%.

Money Transfer Apps

Apps like PayPal allow users to transfer money abroad. A drawback of PayPal is that the receiver of funds should also have a PayPal account. PayPal is also an expensive method for international money transfers.

Bank Drafts and Money Orders

These are traditional modes of transferring money abroad involving physical transfers. Senders can purchase money orders or bank drafts for the amount being transferred. If they want to transfer small amounts, they can purchase money orders through post offices. The money order is delivered to the doorstep of the recipient.

Challenges associated with International Money Transfer

challenges associated with international money transfer

Here are some of the challenges associated with conventional methods of international money transfer.

Lack of Bank Accounts

A key requirement of bank transfers is that the recipient should have a bank account for the fund transfer. Currently, more than a billion people in the world do not have bank accounts. Even in India, nearly 20% of people do not have bank accounts.

Time Taken to Transfer Funds

The time taken for international fund transfer can vary by the mode of transfer used. International bank transfers can take up to 7 days. Such delays can be a challenge for senders, especially if they are sending money for an emergency need.

Documentation and Paperwork

In the case of bank transfer, the sender needs to fill in a form to transfer funds. The form includes details such as the recipient’s account number, the purpose of remittance, the recipient’s phone number and address, etc. For transferring money via agents, documents needed include the passport and identity proof of the sender. The sender may also have to provide the passport copy of the beneficiary and the proof of relationship between borrower and sender.

Transfer Fees

All modes of international funds transfer have some fees involved. As mentioned earlier, the transfer fees of banks are higher than other modes of international money transfer. Some providers may also have hidden fees and cancellation charges. There could also be fees related to conversion into foreign currency. There is also an issue with transparency as the senders cannot know the transfer fees in advance.


Whether the amount being transferred is big or small, you want the funds to reach the recipient safely and securely. If senders rely on unregulated fund transfer modes, they face the risk of losing their entire amount.

No Control Over Spending

In traditional modes of international money transfer, once the sender transfers a sum, they do not control how the receiver spends it. Senders can find it frustrating if the other family members are not using their hard-earned money wisely.

Xare: A Revolutionary Method of Transferring Funds Abroad

Xare is an innovative method of international funds transfer that comes without the challenges of conventional methods. Unlike other methods, which come with a fee, Xare allows free transfer of funds. Xare facilitates the instant transfer of access as opposed to some methods, which can take up to 7 days.

Xare removes the challenges of documentation and registration. Anyone with a valid phone number can register on Xare in under 30 seconds. Once the registration process is over, they can share the Xare card with any contact on their phone.

Beneficiaries get a virtual Xare card, which they can use for purchases in thousands of stores. Xare also gives control to the money sender on how the money is being spent. They can set daily or monthly limits and even an expiry date for spending the money. The daily/monthly limit feature can also help develop financial discipline among family members, especially younger members.

Xare can be used to transfer funds not only to families but also to friends, and even the community. Unlike some other modes of fund transfer, senders do not have to worry about sending proof of relationship when transferring funds abroad.

Users can issue multiple Xare cards to different members of the family. This approach can empower dependents such as children or older, non-earning members who no longer must ask for cash for their day-to-day needs. A sender can even issue cards for short-term needs, such as a family member traveling abroad. Once the short-term need is met, they can then revoke the card.

Xare can also be considered as a free global remittance alternative that aims to make funds transfer easy for ex-pats/migrants. Get Xare to instantly share funds with your loved ones without incurring transfer costs.

Get in touch with us for your service related query

Contact Us
Start Xaring today

Download the app

Join over 1 Million people worldwide who've changed the way they use money.