Money transfers are one of the modern-day amenities nobody wants to skip. Long gone are the days when you had to travel long distances to meet people you wanted to give money to, or even when you had to visit banks for the purpose. Today, all you need to transfer money between countries is an internet connection and to open an account at Genome! This time our team explores what are money transfer systems and some of the most popular ways of safe transfers across the EU. What is a money transfer system? The term is pretty broad, as it
Funds transfers are the most rapid way to send and receive payments online. This Genome article is dedicated to the nature of wire transfers, their functionality, usability, and types of transfers available nowadays, and how to send them from your digital wallet.
What is a money transfer?
Money transfer is also called a banking transfer, or wireless transfer. It is the transmission of e-funds to a private or business account of a person or an entity. E-money sendings today do not have to involve an actual physical exchange of funds, only the electronic equivalent of it. And instead of receiving the cash amount, a person or an entity would obtain the same amount on the digital wallet.
For more information on what digital wallets are, their types, and how they work, check out this article.
The origins of funds sending go back to 1872 when the Western Union company initiated it through the network of telegraphs across the USA. The system worked in the following way: the sender would give money to the telegraph office, where the operator would send a message and a wired amount to the needed location, assigning a password and a code for the receiver to get the cash.
How does a fast money transfer to a digital wallet work?
Fast payments through transmissions enable the two parties to exchange money on eWallets no matter the location and time difference between them. Keep in mind that digital wallets are linked to a bank account of a user. A wire is normally issued from a certain bank or fin institution towards another one. Instead of physical money, the fin institutions exchange information about two parties involved in the payment.
To send money, a person or an entity has to input the personal and banking data of the beneficiary and the transfer basis or cause. And so, the process begins.
The issuing fin institution transmits a message to the fin institution of a receiver, attaching the payment directions through a secure transfer system such as Society for Worldwide Interbank Financial Telecommunication or simply SWIFT. The fin institution of a receiver obtains the data from the issuing institution and deposits its own reserve funds to the receiver’s account. Then both of the fin institutions agree on the sum exchange between them after the funds have been deposited.
The speed of these payments depends on the type of transfers you choose, which we will discuss in the next section, as well as your bank’s ability to send instant or fast money transfers.
Types of transfers: which are the fastest?
There are two main types of wire payments: domestic and international. Both can be performed using a physical card or a virtual card.
- Domestic transfers are those which are performed within one country. Often, wires like this are processed during the day, and the amount is transmitted quite fast.
- International transfers are the wires that are issued in one country to the recipient in another country. These payments do require a SWIFT involvement and take longer to complete.
When it comes to Europe, some countries are a part of a SEPA zone. Within it, all the money moves between states are carried out faster than the international ones. For instance, a SEPA transfer between Belgium and Sweden can take just one business day, while SWIFT transfers are carried out within 3 to 5 business days. Also, there are SEPA Instant Credit Transfers that are performed in just 10 seconds but are not as widespread. Learn about different types of SEPA transfers here.
Wire transfers benefits
- Security. The first and the main cause for banks to support digital bank transmissions is their security. Due to multiple banking networks and institutions involved, the security and anti-fraud measures are extremely high.
- Speed. Another main reason, especially for senders and receivers, is the speed of wired payments. Normally, a transmission like this takes no more than 5 business days regardless of the location of both parties.
- Accessibility. With mobile wallets and online bank accounts, wire transfers are way more accessible than traditional options to send money. Any kind of transaction can be done with a couple of clicks online.
- Usability. With today’s technologies, banks and financial institutions can offer users quality software and applications to manage their funds, and also perform transfers easily.
- Automatization. In a case of a need for regular payments, such as rent, for example, a sender can opt for a repetitive transaction through the application or a web page of a banking institution.
How to do a money transfer in Genome
Let’s elaborate on our instant transfers: all you need to perform them is to start a personal or business wallet within Genome. Once you’ve done that, you can send money to other Genome users instantly, which is a great example of a fast transfer.
This is how you do it:
- Open an account or sign up for it. There is also an option to use the app.
- Choose the account from which you would like to transmit money.
- Fill in the needed data: name, email, IBAN, phone.
- Type in the sending amount.
- Send away!
What is the quickest payment method to transfer funds?
It depends on what your bank or payment service provider offers. Some of them, like Genome, allow creating an instant transfer that takes only seconds to deliver money to a receiver. Also, some acquirers have an option to send SEPA Instant Credit Transfers that take 10 seconds to complete. more on that here.
How do you instantly transfer money?
You have to have an account in the bank that allows instant transfers. Some institutions take a fee for it, some offer it in the package. Then, you just need to opt for instant transmission while sending money.
How do I add money to my digital wallet?
You can add money from other bank accounts, creating transfers. You can also top up the account with cash in machines, or at the physical branches.
What’s the fastest way to transfer money between banks?
To do instant bank transfers that take just seconds to be processed. This also enables them to receive money fast.