The best way to send money abroad in 2023

Need to send money overseas? Though a bank might seem like the obvious choice, they’re almost always the most expensive option and usually have hidden fees lurking in the shadows. Luckily, there are good alternatives. As frequent travelers and digital nomads, us from the Worldpackers team have done lots of research on what’s the best way to send money abroad, and now we’re here to tell you all about it.

We’ve been using Wise, which in our opinion is the best solution for international money transfer and to manage your money abroad. For digital nomads who often need to manage money across borders, the 'borderless banking' services they offer are excellent, as well as for people who need to send funds to friends and family abroad.

It’s also super handy if you’re traveling outside your home country, since you can use their prepaid travel card for foreign spending with the best rates.

But before we explain how all these solutions work and why we recommend them, let’s go over some basic aspects you need to keep in mind when determining the best way to send money abroad.

You might also like to read:

• Planning a budget-friendly trip around the world
• How to save money for travel 

The basics of sending money abroad

Sending money overseas might seem complicated, but it doesn't have to be. However, it’s good to do some research to avoid wasting your precious money. There are a few key things you need to consider before choosing a money transfer service:

Transfer fees

When you're sending money internationally, it's like navigating through a jungle of fees, which are usually a percentage of the amount you transfer. As we mentioned, the banks might seem friendly, but they often have high charges for international transfers.

Every dollar saved on transfer costs means more funds reaching your intended recipient overseas, so you should look for affordable, transparent fees.

Beware of 'zero-fee' offers, because services who offer that benefit often compensate by working with less competitive exchange rates.

Exchange rates

Another important thing to consider is the exchange rate. Of course, you don’t want your hard-earned cash being gobbled up by poor conversion rates. Every penny counts when supporting loved ones or financing travels abroad.

Many companies will charge you a markup on the currency exchange rate when making your international transfer. The markup is a percentage added to the 'real rate' (mid-market exchange rate) by a provider when they sell you foreign currency. We advise you to avoid that. 

Speed

Another factor that might be more or less important to you depending on the situation is how quickly does the service move your funds. 

This depends on factors like local banking hours, time zones, and security checks. Some transfers may take minutes while others could stretch over days or weeks.

Keep this in mind when selecting the best way to send money abroad, especially if you need your funds to quickly reach their destination.

Security

Trust is a big factor when sending money overseas. You need to be confident that your funds will reach the intended recipient securely. Never choose a transfer service that does not have a great reputation.

Destinations

Some services will transfer money into a bank account, while some allow people to pick up actual cash at various physical locations and others will require that the recipient have an account with that specific service. Determine which option is most convenient for your needs.

The best way to send money abroad

As we’ve learned, it's critical to ensure you don't end up forfeiting too much in exchange rates or fees when transferring funds internationally. Hidden charges can eat up your hard-earned cash. That’s where Wise comes into the picture.

What is Wise?

Wise, formerly known as TransferWise, offers a smart and cost-effective solution for sending money overseas. The company was actually born out of a frustration with high bank fees: two friends from Estonia who lived in London and constantly needed to send money internationally started this platform to let people transfer funds across borders without hidden costs.

One of the best things about Wise is its transparency - what you see is what you get. You'll know exactly how much the recipient will receive before hitting 'send'. This sets them apart from traditional banks and other remittance services who often hide their real charges within inflated exchange rates.

Another key difference lies in the approach to currency exchange rates. While many providers use a marked-up rate that adds an extra cost to your transfer, Wise uses the real mid-market rate. 

Another advantage of using Wise is their borderless bank account feature which can hold more than 40 currencies at once. So, if you need multiple currencies for various transactions, this might be quite beneficial.

5 reasons to send money abroad through Wise

Here’s a summary of the reasons why we think Wise is the best way to send money abroad:

1. No hidden fees: With transparent pricing structure, all costs are shown upfront so there won't be any unpleasant surprises.
2. Fair currency conversion: They use mid-market rate (the fairest exchange rate) which means more savings for you. Using Wise for international transactions is up to 8 times cheaper than using a traditional bank.
3. Fast transfers: 55% of transfers with Wise arrive instantly. 76% of all transfers arrive within an hour and 93% within a day.
4. Safety: The company is regulated by financial authorities in any country where they operate.
5. Coverage of currencies and countries: They allow customers to hold, spend and send money in over 40 different currencies.

One of the few downsides of Wise is that it doesn’t allow the recipients to receive the transferred sum in cash from a physical location; they must have a bank account.

How can you send money abroad through Wise?

1. Sign up for free at their website or app. All you need is an email address, or a Google or Facebook account.
2. Tell them how much you want to send. They’ll show you what will be the fees and when your money should arrive.
3. Add your recipient’s bank details.
4. They might need to verify your identity for safety reasons, in the case of some currencies, or for large transfers. That usually means sending an image of a photo ID.
5. Pay for your transfer by bank transfer or with a debit or credit card.
6. It’s done! You can track your transfer in your Wise account, and they’ll tell the recipient the money is on its way.

In most cases, Wise can send your money within one day, or even instantly. Sometimes, different payment methods or routine checks may affect the transfer delivery time, but they’ll keep you updated.

Other useful features of Wise

With Wise you can also have an international account for over 40 currencies, so besides cheap money transfer you can get a card to spend in any currency, bank details to get paid in 30 different countries, multi-currency direct debits, and more.

It's the perfect solution for people who need to send funds overseas regularly or work with multiple currencies, such as an expat who needs to send money home or a freelancer working with international clients.

What are the main features of the Wise account?

Besides sending money abroad with low, transparent fees, here are some other advantages of the Wise account:

• Balances: you can hold and convert money between more than 40 currencies, with the mid-market exchange rate.
• Bank details: they offer local bank details in 9 currencies (US dollars, British pounds, Euro, Canadian, Australian, New Zealand and Singapore dollar, Hungarian forint, and Romanian leu), which you can use to receive local transfers from more than 30 countries.
• Direct debits: their US, British pound and Euro bank details allow you to set up direct debits to pay for utility bills, subscriptions, and other automated payments.
• Debit card: with the Wise Visa card, you can make payments in over 160 countries without hidden fees. You can also add it to your Apple or Google wallet.

Wise Travel Money card

If the reason you’re looking for the best way to send money abroad is that you’re a frequent traveler, the Wise Travel Money Card is another feature worth your attention. It’s a prepaid card that lets you carry multiple currencies in digital form wherever you go around the world.

You simply load it with funds and then use it like a debit card when traveling. As with the money transfers we’ve mentioned above, it gives real-time conversion rates based on mid-market values. It’s a great way to avoid both the risk of carrying a lot of cash on you and the foreign transaction fees of credit cards.

If you have the local currency of your destination in your account, the Wise travel money card will use it. But you don’t need to have the money converted beforehand — simply use the travel money card in stores, online or withdraw from ATMs, and they’ll convert the amount automatically for a low fee.

Keep reading:

• Digital nomad resources: how to work while traveling full time
• 40 creative ways to make money online and offline

Ready to take on the world?

Sending money internationally has become more convenient thanks to innovative companies such as Wise. That makes it easier for you to send funds overseas, to receive payment for international work and to travel abroad.

At Worldpackers, a work exchange and volunteer abroad platform created to foster collaborative travel experiences, we believe in transcending borders and making the world our home. We’re happy to use services that are connected with our mission!

We hope this article was useful. If you’re looking for advice on how to be a full-time traveler, how to travel on a budget, and other tips for exploring the world, check out our blog and our social media: we’re on Instagram and Tiktok.