Money is the medium of transacting. Cash, checks, and drafts were the most common tools used to affect money transfers, both for personal as well as business purposes. Of course, this was a lengthy, cumbersome and time-consuming process.

Technology has changed the face of the world, including the way how money transfers work. Electronic money transfers have drastically changed the money transfer norms and procedures. It is easy, convenient and most importantly, safe. In electronic money transfers, there is no physical transfer of cash, but money moves from one bank to another.

The Internet and smartphone technology have brought about a paradigm shift in the way money transfers are happening in today’s world.

Benefits of online money transfers 

Safety

Money transfer service providers ensure the highest level of security while conducting transactions. Multi-layered security measures are put in place to ensure that all your confidential information is encrypted.

Easy-to-use

Easy-to-navigate user interfaces make online money transfers easy for the elderly as well. Whether you’re making use of your smartphone or laptop to send or receive money, it can be accomplished by going through a systematic series of 5 to 6 simple steps.

Speedy

Physical cash transfers entailed a long period of time. But when you opt for electronic money transfers, the transaction takes place very fast. In case you’re making an international money transfer, it will probably take an extra couple of minutes.

Exchange rate fluctuations

If you’re making an international money transfer, exchange rates come into play. These rates are constantly fluctuating. When you choose the electronic mode of money transfers, you will be aware of real-time exchange rates.

Comparatively low fees

Money transfer entails a service charge. Companies that offer money transfer services charge a standard processing fee. Plus, an intermediary bank can also levy a fee. After summing up the above fees, what you pay will be less, compared to the costs you would incur through any other mode of money transfers.

Mobile money transfers

Mobile money transfers are even more sought after. This is because of the privacy and mobility. With a smartphone in hand, you can carry about your money transfer transactions just about anywhere, even from the safe confines of your home. There is utmost privacy, with no one in public having any inkling of your financial transaction.

Risks associated with mobile money transfer 

Handset compatibility

Each mobile device is compatible with a separate operating system. To execute a financial transaction, the handset and the service must be compatible. It is best to check beforehand the compatibility.

Network coverage

Executing financial transactions via the mobile phone, calls for a reliable network, offering high-speed data transmission. When you’re making international money transfer and the network coverage in the receiving country is not too good, the transfer cannot be affected.

Hackers

Despite fool-proof security measures in place, hackers outwit those and successfully access all the information that is contained in your mobile devices, thereby, exposing the high risk of misusing your confidential information.

Frauds

Fraudsters linger about everywhere and are devising new schemes in a bid to cheat you of your hard-earned money. They could just call you faking a raffle win and ask you to make an immediate money transfer to credit your winnings. If you’re not careful, you can walk into the trap.

Losing your mobile phone

The chance of your mobile phone being pickpocketed or misplaced is quite high. If the device is lost and falls into wrong hands, all your personal and financial information stored on the phone is likely to be misused. The risk of losing the device can be countered by being extra careful. But to protect the information on your phone, you can install mobile-monitoring software. If the device is lost, no one can gain unauthorized access to your confidential information.

Mobile money transfers are here to stay. Installing additional security features on the phone will help you carry out financial transactions in a secure manner. Companies like Paypal, E-Gold, and Xoom, offer the service of online money transfers. A good number are poised to come up in the future years as mobile money transfers become the norm.