Send Money Overseas with p2p Payment Providers

The international fund transfer sector took a major turn when p2p payment providers brought a revolutionary change to the business. By introducing a new idea to significantly reduce the fee, they have paved a new path, different from the traditional fund transfer businesses. This system has eliminated the need for a middleman. Now the funds go from one person’s account to another with the help of a large network of such customers. In recent years, many businesses have popped up using this new method. So what is this fund transfer technique, and how are the top p2p businesses using it successfully?

About p2p (peer-to-peer) money transfer

Peer-to-peer payment is the simplified process of sending money to other countries. In this process, the service provider takes your payments, converts it into the currency you need, and then matches it with a person sending payments from the opposite country. This way, you get to enjoy great exchange rates with smaller fees. Since these organizations have such a big network, they can always find someone to match you with. Now you don’t have to lose money because of poor exchange rates or high fees.

Send Money Overseas with p2p Payment Providers

How it works

The p2p service providers keep funds ready in every country they operate in. When a customer submits an amount to send it to another country, it gets deposited to the origin country’s account. After deducting their fee, the remaining amount is converted into the currency of the country it is being delivered to. This amount is delivered to the recipient from the company’s account located in the recipient’s country. More and more service providers are moving to this new technique because it’s efficient and saves a lot of time and money for their customers. However, since they are relatively new, peer-to-peer transactions are not available in many countries and in many currencies.

Better than banks?

Banks can charge you high fees, and you might also get bad exchange rates. It is because your bank first sends your funds to another bank, then it is converted to the local currency, and then it is delivered. During this process, both banks take a share of your money. This translates into high fees and poor exchange rates. Sometimes, you even have to pay to receive funds through a bank.

Better than banks?

Since banks aren’t always an economical option, people are gradually shifting to p2p money transfer methods to save time and money. There are a few good service providers who use this p2p method for their overseas transactions. Let’s take a look at three examples of p2p payment services and compare their fees, exchange rates, and speed of transfer.


TransferWise was founded in 2011 in London, UK. It offers very low fees and guarantees real exchange rates in all transactions. When you send money with TransferWise, your exchange rate is fixed until it is received. You get the same exchange rate with which you initiated your transaction, preventing losses due to rate fluctuations. They charge a small percentage of the amount being sent along with a flat rate. This percentage varies depending on the country and currency. Usually, they charge you between 0.5% and 1.5% of the amount. Your payment reaches its destination in 1-5 business days.


CurrencyFair uses the p2p transfer in a slightly different way. It uses marketplace principle to send your funds. Here you can decide the exchange rate you want. If someone from the opposite country agrees to this rate, your transfer goes through. The charges of CurrencyFair are lower than TransferWise. They charge 0.38% of the amount as their fee and 0.15% if you exchange with other users on an agreed exchange rate. CurrencyFair usually takes 2-5 business days.


Xoom is an online service with which you can send funds to over 56 countries from the US. It’s owned by PayPal, so you can combine it with your existing PayPal account. Along with sending payments, you can also pay your bills with this account. Their fees depends on three factors – the country you are sending money to, the amount, and the payment method. Paying with your US bank account will cost you much less than paying with your credit or debit card. It takes anywhere from a couple of hours to four days for the money to reach its destination.


All these payment providers give you fast service with competitive rates. They are not only cheap but also secure. Their services are spreading to more and more countries to form a bigger network. As their network grows, theses services will become even cheaper and faster than they are now. These services are the next big thing in the overseas payment transfers. With the p2p transfer, you can ensure that your payment will reach its destination without burning a hole in your budget.