Monitoring shifts in the lucrative consumer money transfer sector
The high-value money transfer market has seen a flurry of changes in 2023, with consolidation, rebranding, and some companies exiting the market. Here's a roundup of some key developments:
- Santander's payments arm, PagoNxt, discontinued its money transfer app PagoFX to focus on B2B and merchant acceptance businesses, such as Ebury and Getnet.
- Currencies Direct rebranded as Redpin, with a market focus on payments for global residential property. Redpin continues to market with Currencies Direct and TorFX as its consumer-facing brands.
- Moneycorp has been focusing on B2B payments and its banknotes business.
- Australian transfer provider OFX shifted towards B2B after acquisitions of Paytron and Firma.
- Fleetcor, a transfers company, acquired Global Reach in 2023 to strengthen its portfolio of UK and European customers, and Global Reach was rebranded as Corpay.
- Lumon (formerly Foreign Currency Direct) has rebranded and now focuses on B2B businesses.
Comparing High-Value Money Transfer Providers
With so many providers in the market, it's essential to compare them based on key factors to find the most cost-effective and reliable option. Here's a breakdown of what to consider:
- Fees and exchange rate markups: High-value transfers make small percent differences impactful. Providers like Wise offer transparent fees with little to no exchange rate markup, while others like Western Union have higher, complex markups making them more expensive.
- Transfer speed: Some providers guarantee same-day or next-day delivery, while others take longer. Faster service often costs more but may be necessary for urgent transfers.
- Coverage: Check the countries and currencies each service supports, especially for business or high-value transfers. Larger providers like PayPal, Western Union, and MoneyGram have wide global reach but potentially higher costs.
- Customer service and reliability: For significant sums, access to responsive support and a reputable provider reduces risk.
- Additional perks: Some providers offer rewards programs, rate lock features, and alerts that can add value for frequent or large transfers.
Here's a summary of some popular providers and their strengths:
| Provider | Best For | Fees & Rates | Speed | Coverage | Notable Features | |------------------|-----------------------------------|-------------------|------------------|-------------------|-----------------------------------------------| | Wise | Affordable, transparent fees | Low fees, no markups | 1-2 days typical | Wide but varies | Transparent pricing, fast transfers | | Western Union | Reach and agent locations | Higher, complex | Varies, can be fast| Extensive | Thousands of physical locations worldwide | | Instarem amaze | Frequent transfers, loyalty points| From 0.4% | 1-2 business days | 60+ countries | Rewards program, rate watch, rate locks | | PayPal/Xoom | Convenience, instant online transfers| Moderate-high | Instant to 1 day | Broad global | Digital-first, competitive exchange rates | | Currencies Direct| Business and large transfers | Competitive | Varies | Global | Specialist in high-value transfers | | Moneycorp | Business transfers | Competitive | Varies | Global | Focus on business customers |
When comparing providers, shortlist those that cover your corridors and support your currencies. Run quotes for your specific transfer amount to see actual total costs including fees and exchange rates. Consider speed, security, and customer reviews to select the best provider suited to your needs.
By comparing providers systematically by cost, speed, coverage, and services, you can ensure you find the most cost-effective and reliable high-value transfer option in 2023.
- In the sphere of high-value money transfer, it's crucial to examine providers based on essential factors, such as fees and exchange rates, transfer speed, coverage, customer service, and additional perks, to find the most affordable and dependable choice.
- Many industry players, like Santander's PagoNxt, Currencies Direct, Moneycorp, OFX, Fleetcor, and Lumon, have shifted or are focusing on business-to-business (B2B) services within the finance and business sectors in 2023.
