Money remittance is not a new concept, the process of has always been used for sending money around the world. Online remittance is a service that is currently being more favored as it is more convenient and faster. The dramatic rise of e-commerce created a heavy demand for money transfer solutions in the online world. Remittances services are usually utilized in times of shortage in cash, in an emergency, sending money to loved ones, holiday trip or other circumstances. As technology continue to progress, there will also be some cons to this change. This article examines the possible advantages and drawbacks of online remittances as it becomes more common everywhere in the world.
Benefits of Online remittance
1. Speed
Money can be received within 1 or 2 days, easily resolving the financial necessities. It can be approved easier, faster and conveniently.
2. Pervasive
Money remittance covers a wide range including utility bills, fees, taxes and international transfers.
3. Security and Privacy
Verification and proof of cash being remitted are recorded, providing security to the sender and receiver.
4. Accessible, flexible and convenient
Sending of money can be done anywhere and anytime as long as there is access to the internet, providing flexibility and convenience to the sender.
5. Exchange rate
Users can see the current exchange rate and decide accordingly when to send money.
6. Profile record system
Users can track the record system to be able to examine past transactions and review recent transactions.
7. Less fiat money
E-payments reduce fiat money and cheques, as credit/debit cards can be utilized for payment. This discourages people to carry more cash with them.
No technology is perfect, it has its own disadvantages as well. Here are some of the few things you should be aware of before proceeding in online remittances.
Cons of online remittance
1. Transfer fees of online remittance
Depending on the company, some remitting companies charge a higher transfer fee compared to traditional ones.
2. Risk of theft and invasion of privacy
Rise of technology also causes a rise in theft and scam due to vulnerability in hacking. There is a possibility that personal information including credit card information of registered profiles can be exposed and stolen.
3. The occasional case of technical difficulties.
Technical difficulties can be occurred especially during the crisis, causing a delay in the process of sending money.
4. Availability
Not all versions of phones can access applications, certain apps require high-end applications.
As technology continues to arise, the use of online remittance is becoming a more favorable option for the public since it is faster, safer and convenient. However, it is always important to take everything into consideration in using online remittance, it is a must to focus on what is more effective in one’s situation and decide accordingly.
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