Sending money to Africa doesn’t have to be expensive. There are very cheap ways you can send money to Ghana, Nigeria, Kenya, Uganda and other African countries.
What you have to look out for is the transfer fees, availability and convenience, time of payment delivery and customer support service.
When it comes to sending money to Africa from US, UK, Australia, China or Canada, you need to understand the dynamics of the exchange rates offered by the money transfer service provider.
What are the best ways to send money to Africa?
CurrencyFair is a fully licensed and regulated company with over 10 years track record for quick, low-cost money transfers options. You can securely send money to almost all African countries, in 20+ currencies.
It boasts of bank-beating exchange rates at 8× cheaper. International money transfers are said to be completed within 24hours as such, CurrencyFair is rated 4.6 of 5 stars by its 5600 customers on Trustpilot (an independent review site).
CurrencyFair Money transfer charges:
CurrencyFair offers some of the best and lowest exchange rate markups. It has an on-site calculator that can help you work out the exchange rate pricing before sending money.
CurrencyFair charges a small flat –rate of €3 (or currency equivalent) in spite of the amount being transferred.
On its website, it states that it charges an average transfer fee of 0.45% per transaction, compared to 4 – 6% of traditional banks.
Wise, formerly called TransferWise is a legitimate online and App platform, ideal for international money transfer of small amounts.
So when you want to send small amount of cash to a relative in Ghana, or Nigeria, Wise is the best option. It is the ideal choice for world travelers who repeatedly send or exchange cash into with multiple foreign currencies.
Opening an account with Wise is completely free and typically requires an initially deposit of only $25.
WorldRemit allows users to send money in a secure, fast and affordable way. It has options for bank transfers, cash pickups and direct mobile money transfers.
It has an extensive global reach of over 130 countries with over 70 currencies to choose from.
What are the offers of WorldRemit?
The foreign exchange rate spread of WorldRemit for currencies such as the US Dollar or GBP has a markup between 0.5% to 1.25%. This is cheaper compared to 4% – 6% offered by traditional banks.
According to WorldRemit, 95% of its transfer ready in minutes. However, its bank transfers take between 2 – 3days to complete.
The maximum sending amount is $10,000 with a range of payout options (including debit cards, credit cards and direct mobile money transfer).
In terms of card transfers, users will incur an additional transfer fee of up to 3%.
OFX is a legitimate online/App money transfer platform with coverage in over 190 countries with 50+ currencies. It has a high security service as it is ASX-listed and monitored by over 50 regulators globally.
What are the fees and charges of OFX?
OFX doesn’t charge you fees for sending money. It has an exchange rate markup of less than 1% of the transfer amount.
Minimum transfer limit is $500 with no maximum limit, making it an ideal choice for sending amounts above $10,000.
According to OFX, most of its money transfers are delivered within 24hours. Its customer support service operates 24/7 plus a loaded FAQs on its website.
PayPal is one of the best online platforms/Apps for peer to peer money transfers and payments. It is a widely trusted, secured and fast money transfer platform. It available in more than 200 countries and supports a lot of currencies.
What are the offers of PayPal?
PayPal has an exchange rate margin of about 3% as at the time of writing. It has a fixed rate for money transfers depending on the currency and, charges 1% of the transfer amount, with a maximum fee capped at $10.
PayPal also charges an additional 2.5% when a recipient withdraws the money to their bank account.
So, you can expect to incur a total fee of about 5% of the transfer amount. It takes about 24hours to 48hours to process international money transfers.