Especially in Africa, where many people are dependent on money that is sent to their countries from relatives or friends should have a closer look at the different players on the market. With the emergence of the internet many cheap innovative solutions, like TransferWise, have disrupted the money remittance markets by offering much lower rates and a less complicated service.
Here is a list of the 5 big players in the industry who are offering some of the most affordable transfer rates and services to Nigeria:
UKForex promises fast and secure money transfers to 197 countries worldwide. They offer mobile and online transfer fees and charge a flat rate of 7 if you transfer is less than £3,000, anything more than that is free of transfer fees.
Western Union offers an agent receiver system to Nigeria where by money needs to be collected from one of the 2700 agents available. Despite the agent receiver system, Western Union promises that transferred money will be available in minutes subject to availability of the currency. Western Union also offers a mobile money transfer service for transfer fees from $1. This service promises convenience and ease of use and it allows you to buy goods and services from your mobile wallet.
World First offers online and mobile payment solutions and promises to take a smaller margin of your money than the banks do. With this, they offer 0% transfer fees on transfer bigger than $10 000 and a flat rate of $10 for any transfer under $10 000.
TransferWise currently serves 292 currency routes and promises to cut out huge hidden bank transfer rates. This peer-to-peer transfer platform only charges 0.5% of transfer charges as opposed to bank chargers of 5%. TransferWise can only deliver NGN to bank accounts based in Nigeria.
Example: How to make a cheap money transfer from the UK to Nigeria?
Transferring money abroad comes with two basic costs attached - the provider's fees / charges and exchange rates. Transfer services are therefore more likely to add the costs together as a sum cost rather than to distinguish the costs, which makes it far simpler to transfer money, but at the expense of transparency. As the transfer costs and provider's fees vary according to the amount being transferred, there are a few things that you need to look out for when choosing the best deal.
Firstly, when transferring money from the UK to Nigeria, most of the transfer services will cut transfer fees on large amounts e.g. more than £5,000. In this case, consider sending a larger one-off-payment than regular smaller payments.
Secondly, consider how long you want the transfer to take. Depending on the service, certain platforms will charge extra for quicker delivery so plan your transfers accordingly to avoid extra costs.
Lastly, make sure your provider fits the needs of both the sender and the receiver of the transfer. Certain services only provide mobile or online access to the transfers, which may or may not suit the needs of the receiver.