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How social media is reshaping global money transfer

5 MinsJuly 04, 2019

Social media has reshaped the world in many ways. Today, you can sit in London and share your thoughts, pictures, and updates with friends and family scattered across the globe. And over the past few years, social media has been revolutionising the ways to send money abroad. With just a few clicks on your smartphone keypad, you can transfer money to India in an instant from anywhere in the world.

Social-media

Social media: An overview

Most people today can’t think of living without some form of social media. It started two decades ago with increased access to the internet and personal computers. The late 1990s saw the burgeoning of chatrooms and forums such as on MSN and Yahoo! Back then, Myspace and Orkut were the two most popular social media platforms. Soon Facebook would outstrip them all in popularity and user base.

Fast forward to today. Smartphones have brought the internet and the personal computer to everyone’s pockets. There are multiple free messaging apps such as WhatsApp, WeChat, and Facebook Messenger. These apps no longer just connect people. They have evolved to offer social media money transfer services as well.

Money transfer services via social media

  • Google Wallet: This tool allows you to link your credit card or bank account to the app. You need an updated Android system version 4.0 and iOS 7.0 to run the app on your phone.
  • Facebook Messenger: The app has over a billion users. It offers a social media money transfer service and even allows users to request others for money.
  • WeChat: This is mobile messaging service is China’s largest messaging app. It has over one billion users. Each user has a QR code to transfer or receive money. The app also offers digital content, e-commerce, advertising, and online-to-offline services.
  • Apple Pay Cash: Apple users have their very own peer-to-peer payments service that can be used on any iPhone, Apple Watch, and iPad.

Social media money transfer vs online money transfer

Nowadays, billions across the world use smartphones, and a significant percentage of that number has a social media presence. As a result, social media money transfers carry a lot of appeal. A person in a remote location can transfer money to India via a social media app. They don’t need a secondary app, nor do they have to visit the bank. But is it the best way? Not necessarily. Let’s take a look at how social media stacks up against online money transfer services.

App/platform usage: For social media money transfer to work, users must be connected via the social media platform. Today, an increasing number of people are opting out of social networks such as Facebook. Meanwhile, in case of Apple Pay Cash, both parties need to use an Apple product.

With an online money transfer service, this would not be a problem. You would be able to send money instantly even if the other person does not use the same app or brand of product.

Limitations: Transfers via social media apps may be limited for cross-border payments. In this case, users benefit from using international money transfer services.

Besides, some social media money transfer services have a limit on the amount that can be transferred. Online money transfer services tend to have higher transfer limits.

Time: Social media money transfer apps claim the transfer to be instantaneous. But the money may take from one to three days to reflect in the beneficiary’s account. Online money transfer apps like RemitMoney allow users to send money within an hour.

Security: Most social media platforms encrypt data and have added security features such as two-factor authorisation. But they could still be prone to hacking.

Online money transfer services are safer in comparison. Stringent security blocks make them more hack proof.

Conclusion

Social media money transfer is a convenient way to send money. But the platforms need to bolster their security measures. Until then, it is better to use an online money transfer service like RemitMoney. It offers zero hidden charges, instant transfers, and a safer user experience.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.

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