Sending money to friends, family, or businesses is now more simple than ever.
Cash and checks both have benefits, especially since most people are accustomed to using them. However, there are other methods of transferring money that are more secure, quick, and manageable.
Person-to-person payment apps are some of the fastest and cheapest ways to send money if price and speed are your top priorities.
Venmo
PayPal-owned Venmo free withdrawals from your bank account or debit card. You can also make a payment for nothing using any Venmo balance that you have. However, there is a 3 percent fee if you use a credit card to fund the payment.
The app is made to make it simple to divide costs for things like meals, rent, and entertainment. Additionally, you can direct deposit money from your paychecks into your Venmo account.
Venmo offers a social component along with its payment capabilities. You can comment on your friends’ payments and include a message describing what each one is for.
Venmo is best used with people you know and trust because of this social component. You can modify who can and cannot see your transactions using Venmo’s privacy settings.
Money App
Another instantaneous money transfer service that utilizes a mobile app is Cash App, which is owned by sq\. Inc. The service is free to use.
Each party must create a Cash App account in order to use the service. You can link it to your own checking account, debit card, or have money like a paycheck directly deposited into your Cash App account.
Note
Additionally, you can request that government payments, like tax refunds, be deposited into your Cash App account.
Additionally, you can get a Cash Card, a Visa debit card that is linked to the funds in your Cash App account. Then you can use it anywhere that takes debit cards to make purchases.
With features like stock purchases, Bitcoin purchases, and cash withdrawals from ATMs, Cash App has made an effort to stand out from its rivals.
PayPal
PayPal is widely used for online purchases, but you can also use it to send money to an individual. To transfer money, a PayPal account is required for both parties.
PayPal is free when you use your linked checking account or your PayPal balance to make personal payments. If you send using a debit or credit card, you will be charged a fee. You will also need to pay a fee if you receive a business payment via PayPal.
You can send money internationally using PayPal. Each international transfer will incur a fee, which varies depending on the nation.
Xoom
A separate PayPal app called Xoom is available only for sending money abroad. It is especially helpful if you frequently send money or provide financial support to family members who live abroad.
Using Xoom, you can:
- Pay your foreign debts.
- Transfer funds between accounts at banks in various countries.
- Send cash to specific nations for pickup or delivery.
- mobile phone reloading abroad.
Receivers of Xoom payments are not required to have a PayPal account.
Chat on Facebook
Messenger payments are a practical and cost-free way to send money to friends if you frequent Facebook. Payments can be made using your browser or the Messenger app, but you must both be friends on Facebook in order to send or request one.
Add the details of your debit card, prepaid card, or PayPal account to set up your payment account. Start a conversation when you’re ready to send something and click the dollar sign (“$”) icon.
Only within the U.S. is it possible to send money via Facebook Messenger.
Pay with a mobile device
Your phone probably has a built-in app for transferring money, whether you have an iPhone or an Android.
PayPal through Google
For personal payments, Google Pay is a free option. It costs nothing to send money using your linked checking account, debit card, or Google Pay account balance.
Sending money is especially simple for Gmail users. Once the money has been deposited into your Google Pay account, you can send it to someone else, transfer it to your bank, or use a Google Pay Mastercard to make purchases and withdraw cash from ATMs.
iOS Pay
Similar to that, Apple Pay operates directly on your phone and enables you to use the credit or debit card you’ve already added to your Apple account to make payments in apps like Messenger.
Apple accounts are required for each party. You can use Apple Pay by selecting the “App” icon in messenger and then selecting it from the list of available apps.
When you choose the amount and then select “Request” or “Pay,” the app will display a toggle where you can make your selection. The payment is instantly sent through your Apple Wallet app.
Your Apple Pay Cash card in your wallet app is updated with any payments you receive. This balance can be used to make payments or deposited into your checking account.
Online bill payment
You can frequently make payments for nothing if your bank accepts online bill payments.
Put the name and address of the person you want to send money to in the payee field of your online bank portal. It does not have to be a business. The majority of banks will print and mail your checks for you, saving you the cost of postage and reducing your check supply.
This is only cost-free if you can avoid having to pay monthly fees for your checking account and if your bank actually sends those payments for free. To find out what features your bank or credit union offers, inquire with them.
P2P payments through banks
Most likely, your bank provides a P2P payment service. A lot of customers already have access to Zelle through their bank accounts, but you should double-check with your bank or credit union.
Once you’re up and running, those payments are frequently free, and money is usually readily available. If your bank does not offer Zelle, you can use the service independently or check your bank’s offerings.
A “send money to a friend” or comparable option should be available. Popmoney, which also provides cheap transfers, is used by some institutions.
TransferWise
TransferWise is among the cheapest options available for sending money abroad. Fees are typically 1% or less of the payment, and it tries to match the best exchange rate possible. 10.
With a debit or credit card, payments are typically sent instantly. Transfers between bank accounts could take one or two business days.
Note
As your payment amount increases, fees also do. Larger payments will also take longer because before transferring money, TransferWise will confirm your identity.
Important Things
Most P2P services demand an account from both the sender and the recipient. It is usually simpler if both people do, even if they don’t. Saving $1 might not be worthwhile if the recipient has to figure out how to set up an account and link everything for a single payment.
Such services frequently have initial sending volume restrictions. Find out what it takes to raise any daily or monthly caps that you are aware of. Some services let you send more after you ask for an increase and give more personal information.
Note
You can always write a check if you are unsure about using an app for a specific transaction. There’s no need to fuss with a new online service because the cost of the stamp and envelope together is probably less than $1. A check could be a simple one-time solution if you don’t intend to send money frequently.
Make sure to do your research to determine whether it is possible and how much it will cost to send money abroad. Money orders or wire transfers, which are more expensive options, are also available if you are hesitant to use an app for international transfers.
Watch out for scams regardless of how you send money. Only send money to people or organizations that you know and trust.
Questions and Answers (FAQs)
Without having a bank account, can you send money to someone?
Without a bank account, you can send and receive money in a number of ways. There are a couple of simple ways, including Western Union and bank money orders. To store and transfer funds, you can also use digital wallets like Apple Pay and Google Pay. An additional choice is prepaid debit cards.
How do I transfer money online?
Some of the simplest and least expensive ways to send money online are via apps, like those covered in this article. Any service you decide to use will require you to set up an account and, in some cases, link a bank account, debit card, or credit card. To send a payment to your recipient, you’ll next need their account information or user name.