The world is a big place that’s growing smaller with each passing day. It’s getting easier to do business with people all around the world—whether you’re a company valued in the billions or an at-home maker with a few dozen customers. The great catalyst bringing the world together? Money. Specifically, it’s getting easier and easier to transfer money around the world to pay for goods and services.
There are several ways to move money across borders, from one country to another. But what’s the best way to transfer money internationally? More and more, the answer is digital payments. Here’s why.
An introduction to digital wallets
The primary reason digital payments are the best way to transfer money internationally has to do with digital wallets. These wallets exist outside of the traditional banking network, which allows users much more flexibility and control over how they send and receive money—especially when transacting across borders. Funds move from wallet to wallet using established payment rails, but wallet owners maintain full control over the transaction.
Whether you’re transferring money to a contractor in France or sending a payment to a partner in Brazil, digital wallets offer much-needed transparency and optionality when dealing with international funds transfer. These wallets are the reason digital payments are the best way to transfer money internationally.
The benefits of digital payments for international transfers
Keeping in mind that digital wallets are the foundation of digital funds transfer, here’s a look at the reasons digital payments are so widely utilized in cross-border transactions.
- Ease of execution. So long as you have the wallet ID number of the recipient, sending funds is as simple as pressing a button. Where wire transfers and ACH transfers require a host of payee information, digital wallets simplify the transfer as a wallet-to-wallet transaction with a single, simple ID number.
- Transparency in transit. Your bank won’t tell you where your money is in the middle of a transaction. Instead, the account will likely just say “pending” until the funds land. When transferring money abroad, you need the certainty that comes with in-transit payment tracking. Digital payments offer step-by-step tracking for supreme transparency.
- Simple currency conversion. Sending money abroad means taking currency conversion into consideration. Banks aren’t always upfront about their exchange rates and many currency conversion services offer rates that are far from prime. Digital payment providers like Veem offer upfront exchange rates for simpler currency conversion.
- Multi-currency wallets. Don’t want to convert currency? Does your recipient prefer different landed currencies? Unlike a bank account that’s held in a single currency, digital wallets have the power to hold funds in multiple currencies. For those doing business around the world, it’s a convenient way to keep specific currencies on-hand.
- Broad integrations. Despite operating outside the scope of traditional financial services, digital wallets and payment systems are very much compatible with traditional networks. Broad integrations make it easy to sync a wallet up to a banking institution, accounting software, payment apps and much more, to keep funds accessible at all times.
- Automation capabilities. When transferring money through a bank, you’re limited to the capabilities of that bank’s digital ecosystem. In the case of digital payments, there’s a wealth of automation that makes sending global payments simpler. Program automated payments, validate incoming funds and more—all without any manual effort.
- Low-cost transfers. Global funds transfers and payments can get to be expensive—wire transfers especially. Digital payments keep costs low, charging rock-bottom fees for moving money because they don’t need to worry about the massive overhead that traditional financial institutions deal with. The result is a low-cost transfer, every time.
Digital payments via digital wallets make a strong case for being the best way to transfer money internationally—and they’re only getting more robust. The sheer functionality and compatibility of these systems make it easy for businesses and individuals to leverage digital payments in whatever way works best for them.
A digital solution for a digital age
Digital wallets and payment platforms are a perfect fit for the growing shift to digital commerce. A small startup in the United States can easily do business with offshore contractors or get materials from a vendor in China. Everything happens digitally—including the payment. And while traditional banks and international payment methods have their place in the global payments ecosystem, digital payments are unrivaled in their swiftness, simplicity and security.
If you need to send money across borders and around the world, digital payments offer an undeniable benefit. Fire up your own digital wallet with Veem and experience the best way to transfer money internationally.