26 February 2020

How to transfer money to someone else’s bank account

Want to transfer money online from your bank account to another? These days, you’re spoilt for choice.

There are loads of reasons you might need to transfer money to someone else’s account. You could be sending money as a gift, transferring cash to dependent relatives, or simply sharing utility bills with your housemates.

Sending money directly to a bank account has many advantages over traditional ways to pay someone, such as cash or cheques, because these electronic transfers are fast and secure, and require less time and effort from both the sender and the recipient.


Different ways of sending money to another bank account


Bank-to-bank money transfers come at varying costs and levels of simplicity. Here are the top three methods explained so you can decide what’s right for you:


Peer-to-peer transfers


You can send money from your bank account directly to another by using online platforms accessible through mobile apps or your web browser. These transfers are usually cheap to make, and all you’ll need to know is some basic account information from your recipient. It may cost extra with some services if you want to send money abroad rather than domestically.

The major advantage of this type of transfer is that you can do it from home, so you don’t need to go to a bank or post office to send your money.

Paysend is an international peer-to-peer money transfer service which lets you send money directly to a bank account in over 80 countries worldwide for free. The clear and simple Paysend Global Transfers app makes it easy to send money to the bank accounts of your friends and family quickly (usually within a few minutes) and with minimal fuss.


Wire transfers


If you find the world of mobile apps confusing and want to stick with traditional money transfer methods, you can send money from your bank, or the local post office or remittance shop. This is known as a wire transfer. Believe it or not, wire transfers have been around for nearly 150 years!

If you want to send a wire transfer you’ll need to pay the cashier at your chosen branch and give them bank details for both you and your recipient. They’ll do the rest for you, and your money will arrive within a few days.

You should take care with wire transfers, because you may end up spending more than you expect on inflated and hidden fees, and poor exchange rates.


E-wallet transfers


The third main method of electronically transferring money to someone else’s bank account is by using e-wallets. This involves signing up to an e-wallet service - such as PayPal - and sending money to someone else’s e-wallet within the wallet’s mobile app or on its website. Your recipient can then withdraw that money to their bank account.

One of the issues with choosing this method is that it adds a few extra steps into the process - signing up for an e-wallet, having to deposit funds into your account, and your recipient taking the money out of theirs. This can make money transfers using e-wallets longer and more complicated. Having said that, when you’re all set up you’ll only need your recipient’s mobile number or email address to send the funds.

Sending money overseas can be expensive with e-wallets, so make sure you check the fees beforehand, or you may end up spending much more than you expected.


How to get started with Paysend


If you want to send money to another bank account quickly and cheaply, you can do so with Paysend. It’s free to sign up, and there are no transfer fees to send money to another bank account, no matter how much you want to send.

Money sent with Paysend normally arrives after just a few minutes, but if your recipient’s bank has slow processing times it can take up to 3 days.

To get started, head to the App Store or Google Play and download the Paysend app!