7 Cheapest Ways to Receive, Send, and Transfer Money from South Africa - The Art of Backpacking & Adventures to Get Out of Your Comfort Zone (2023)

Last Updated on May 22, 2023 by Rodrigo @ OutofYourComfortZone

Here are some scenarios where you can use the services of some of the companies that will be mentioned below to send money to other countries:

• Planning to travel overseas and seeking to save on currency exchange fees
• Pursuing education in South Africa or participating in an exchange program and requiring financial assistance from family back home
• Providing financial support to family members who are studying or working abroad and need a money transfer to South Africa
• Employed in South Africa and needing to send money to your home country or transfer money to yourself if your funds are located in your home country
• Your spouse is working abroad and needing to send funds back to you
• Sending or receiving payments from global clients or suppliers
• Requiring to make an international payment and seeking to avoid scams when doing so
• Traveling and running out of funds, necessitating your family to send you money to continue your journey
• Unfortunate incidents of theft while traveling, requiring your family’s assistance in sending money
• Earning a salary in South Africa and wishing to transfer money back to invest in your home country
• Owning international accounts and needing to transfer funds to your home country
• Online money transfers are a convenient option that eliminates the need to visit a bank branch.

Keep in mind that the website options listed below are available to individuals from any country worldwide, including Portugal, the United States, Ireland, Argentina, Spain, and others.

So let’s get started!

Important note: Official/spot exchange rate vs. retail/tourist exchange rate

What’re the 3 ways you should NEVER send and receive money abroad?

#1) BANKS

Many people believe that using a bank for international money transfers is a convenient and cost-effective option, but this is not the case. In reality, sending global transfers through banks can be incredibly expensive.

Banks typically use SWIFT code (or BIC) and IBAN for inbound and outbound global wire transfers, and they take advantage of their customers by charging a percentage of the total transfer amount and a fee that can be almost as much as the transfer itself. Moreover, the exchange rate they offer is unfavorable.

If you use a bank to send money to another country, you will most likely end up losing a significant amount of money. For instance, if you send money from an American bank to a European bank, fees can quickly add up to at least $45 for a single wire transfer (in addition to an unfavorable exchange rate). Xe, which is one of the recommended companies below, provides a comprehensive comparison of its rates with the rates of major banks for global wire transfers (previously known as HiFX, which was acquired).

And this table gives you an idea of the fees charged by banks for incoming and outgoing international wire transfers…ouch!

#2) and #3) Western Union or MoneyGram

Then what are the cheapest and most practical ways to do international money transfers?

1. Wise (formerly Transferwise)

Wise, previously known as TransferWise, was founded by the same team behind Skype and is highly regarded as one of the most cost-effective and user-friendly options for international money transfers. Personally, it’s my top choice, and I use it frequently.

To use Wise, you only need a bank account in the currency of the destination country (which doesn’t necessarily have to be in your name, making it perfect for sending money to friends and family).

Simply choose the currency and amount you want to transfer (e.g., USD to EUR), enter the amount you want to send (e.g., $1000 USD), and Wise will display the final amount the recipient will receive in euros, including all fees, taxes, and other expenses.

It’s worth noting that Wise uses the official exchange rate provided by Google for all currency conversions, which means that it’s always the most favorable rate, regardless of the currencies or direction of transfer.

Then, complete the required registration information and provide the recipient’s bank details (even if it’s your foreign account). Wise will generate a bank transfer form to pay the transfer amount, with no extra fees for issuing the slip. You can make the payment at a bank, even if you don’t have an account there, or online via internet banking from your home.

In some cases, depending on the country of origin, you may also be able to transfer funds to Wise using a domestic transfer, debit card, or credit card (although using a credit card incurs an additional charge).

The recipient’s account typically receives the funds within 1-3 business days.

And notice that the currency exchange rate from Wise is pretty much the same as the official one given by Google!

Pros of using Wise for international money transfers:

• It’s the cheapest way to transfer money I’ve found– their fee is only around 0.35% of the total transfer value
• They use the official exchange rate (which is much better than the “tourist” exchange rate)
• It’s super practical – you can do everything online
• It’s cheaper and easier than sending money internationally using banks
• There isn’t a minimum transaction amount
• You can use Wise to transfer money overseas for your Business and pay suppliers or employees
• You can send money to more than 40 countries plus all the countries that use the Euro (19 in total) *
• You can receive payments worldwide

By the way, if you want to send money to Spain, Portugal, Ireland, or other countries that use the Euro, the process is the same. All you need is to select Euro when you begin your transfer and then put the info of the bank account in the country receiving the money.

*Countries that use the Euro:

Germany, Austria, Belgium, Cyprus, Slovakia, Slovenia, Spain, Estonia, Finland, France, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Portugal, Andorra, Monaco, San Marino, the Vatican, Kosovo, Montenegro.

Cons of using Wise for international money transfers:

• Until recently, it was not possible to send money if the person did not have a current account in the destination country of the transaction. But now, with Wise’s digital and physical cards, you can make payments directly from your account on the platform, but check availability in your region!

However, if in the country you are in this service is not yet available, an easy way to circumvent this problem is by using the checking account of someone you trust. Here in Sweden, for example, I helped a fellow Brazilian receive money here from his family in Brazil. They transferred the money to my Swedish bank account, I withdrew the money from the ATM and gave it to him.

Personal experience with Wise:

I’ve used Wise to send money from the United States to Brazil (which can be done with a credit card!), from the United States to Sweden, from Australia to Sweden, from Australia to Sweden, and from Sweden to the United States. It’s always worked smoothly for me! So, I’d definitely recommend it.

If you want to see, here’s a video explaining how Wise works:

2. Xe

Xe is a well-known platform that offers international money transfer services, much like Wise and CurrencyFair. It is a reliable option for those seeking to send and receive money across borders.

Furthermore, Xe is one of the largest websites in the world for comparing exchange rates between any two currencies, including their historical values. This feature is particularly useful for determining whether a specific currency is appreciating or depreciating relative to another.

To determine transfer fees, you must first create a free account with Xe.

It should be noted that Xe does not offer money transfer services to certain countries. Nonetheless, it is an excellent choice for individuals of other nationalities who wish to send or receive money from various countries around the world.

PROS of using Xe for international money transfers:

• Xe does not have a minimum or maximum limit for the transfer value.
• They charge a relatively low fee to send and receive money from abroad (for example: for transfers up to 500 USD a fee of 3 USD is charged)
• They don’t charge any fees to send or exchange abroad
• They use a rate close to the official rate
• It’s super practical – you can do everything online
• You can send money to more than 26 countries plus all the countries that use the Euro

You can see which currencies they work with on their homepage here.

And you can easily sign up on Xe for free to check how much you’d save on a transfer.

Cons of using Xe to transfer money:

• They don’t with all currencies
• You must open an account before getting a quote for the cost of your transfer…..but it’s free to open an account and super fast
• Sometimes it costs more to transfer with Xe than with Wise or CurrencyFair because their rates aren’t always as good (you’ll have to compare for your individual transaction to see what is best)

My personal experience with Xe:

Honestly, I’ve never used Xe. But I have a friend who tried using it to send money from the United States to Sweden and she said everything worked just fine and the cost was pretty good. Plus, I use them all the time to check currency exchange rates when I’m traveling overseas.

3. WorldRemit

WorldRemit is a company headquartered in Brussels that is regulated by the National Bank of Belgium and operates in more than 150 countries, including the United States, the United Kingdom, India, Brazil, and various European countries.

Their services cover over 90 currencies, and they provide mobile top-up services in more than 110 destinations. They charge minimal exchange and service fees, and the first international money transfer is free of charge.

Pros of using WorldRemit for international money transfers:

• Low fees and first free transfer
• Services available in several countries
• Cell phone recharge option

Cons of using WorldRemit for international transfers:

• No website in Portuguese

Personal experience with WorldRemit: WorldRemit really does work at low rates, so it’s worth making a quote through this site and comparing it to others on the list. Also, your first download is completely free!

4. Remitly

Remitly is a well-known player in the global money transfer market, which started by catering to the United States but has now expanded its services to various other countries worldwide.

One of Remitly’s notable features is its capability to send money remotely. This means that users can transfer money to a different country and have it delivered in cash to the recipient’s preferred location through Remitly’s delivery service.

In addition to the delivery service, Remitly also provides online transfers to both traditional and digital bank accounts.

Pros of using Remitly for international money transfers:

• Remittance option delivered in cash to the desired address;
• Simple and super practical interface;
• Transfer option for digital accounts.

Cons of using Remitly for international transfers:

• The site is not available in Portuguese;
• Compared to other companies on the list, it does not work with a large number of countries.

Personal experience with Remitly:

I’ve never used Remitly, but user feedback is pretty positive. This is really a great option if you need to send money to someone who is not comfortable with technology or if you need cash on hand for a trip, for example.

5. CurrencyFair

Pros of using CurrencyFair for international money transfers:

• It’s a super cheap way to send and receive money from other countries – they only charge around 0.35% of the total value, like Wise does
• They use the official exchange rate (which is much better than the “tourist” rates banks use)
• It’s super practical – you can do everything online
• You can send funds to more than 18 countries, including those that use the Euro
• As with Wise, you can use CurrencyFair for your Business to pay suppliers or employees
• It’s cheaper and faster than doing international transfers with a bank
• There isn’t a minimum transaction amount
• Now they are also working with Indian Rupee (INR)

Cons of transferring money with CurrencyFair:

• It only works with about half the number of currencies Wise does

Personal experience with CurrencyFair:

I’ve also used CurrencyFair to send money from the United States to Sweden, and it worked just as well as Wise did.

Here’s a quick video on how to sign up for free:

And how to do a transfer with CurrencyFair:

6. Instarem

Instarem is a financial technology firm that specializes in providing global currency exchange and money transfer services. Established in Singapore in 2014, it has expanded its operations to over 25 countries around the world. Instarem leverages advanced technology to offer its clients efficient, convenient, and cost-effective financial services.

One of Instarem’s key advantages is its highly competitive rates, which are transparently displayed for customers to view. Moreover, the company has a rewards program that allows customers to earn points for making quick and hassle-free money transfers from any location.

In addition to its money transfer services, Instarem offers a comprehensive range of travel insurance products that cover medical emergencies, trip cancellations, lost baggage, and other unforeseen events. These insurance solutions are tailored to meet each customer’s specific requirements and can be easily purchased through the Instarem mobile app or website. Furthermore, Instarem collaborates with top insurance providers to ensure that its customers receive the best possible coverage.

Pros of using Instarem for international money transfers:

• The company is present in more than 25 countries, which allows it to serve a wide variety of customers around the world. In addition, the company’s geographic expansion has been constant and promising.
• Great Value: Low fees. Great exchange rates. nothing hidden
• Secure and reliable: Industry-leading technology moving $4 billion annually
• Rewards: Send money and earn points to enjoy even greater value
• Save time: skip the lines and send money quickly
• Anytime, Anywhere: Send money anywhere with our app

Cons of transferring money with Instarem:

• Transfer Fees and Limitations: Like any financial services company, Instarem charges money transfer fees and sets limits on transactions. This can make the company’s services less accessible to customers with lower purchasing power or who need to send large amounts of money.

Personal experience with Instarem:

Although I have never used Instarem, user feedback is generally very positive. This can be an excellent choice if you need to send someone money!

7. Ria

Since its inception in 1987, Ria has emerged as a prominent global money transfer provider. Headquartered in the United States, Ria has expanded its services and network to over 160 countries with more than 436,000 agent locations.

Ria’s range of services includes wire transfers, bank deposits, and bill payments. Its primary objective is to provide secure, convenient, and affordable money transfer options to individuals and households looking to send money to their loved ones across the globe.

Pros of using Ria for international money transfers:

• Ria has a global presence with over 436,000 agent locations worldwide, which makes sending and receiving money more convenient for its customers;
• Ria offers a wide range of payment options, including wire transfers, bank deposits and bill payments.

Cons of using Ria for international transfers:

• Ria imposes daily and monthly limits on the amount a customer can transfer, which can be an inconvenience for those who need to send large amounts of money;
• Ria may charge additional fees, depending on the destination country and the payment method selected by the customer;
• Ria may require customers to go through an identity verification process, which can be time consuming and inconvenient.

Personal experience with Ria:

Although I don’t have personal experience with Ria, user feedback is often highly positive. This can be an excellent option if you need to send someone money.

Bonus: Online International Money Transfer Companies

Bonus 1. TransferGo

TransferGo is a well-known European-based company that specializes in international money transfer services for European residents and travelers who need to transfer money overseas.

Their services are available in more than 60 countries worldwide; however, sending money to Brazil is currently only available to customers with European bank accounts. Despite this, they offer various transfer options and competitive rates to their clients.

TransferGo offers flexibility by allowing customers to transfer money directly from their bank account, debit card, or credit card. Customers can choose between fast transfers, which can be processed in as little as 30 minutes, or low-fee economy transfers, which may take up to three days to complete.

The transfer process is straightforward and user-friendly, making TransferGo a convenient and hassle-free option for international money transfers.

When making transfers with TransferGo, you can use this code or coupon: HMSESq

Pros of using TransferGo for international money transfers:

• There are no daily limits for transfers on TransferGo
• They work with fast transfer options (for a fee of £2.99)
• They allow transfers directly from your bank account, debit card or credit card to foreign accounts
• They have a simple and practical interface to receive money from abroad

Cons of using TransferGo for international transfers:

• Each transfer may not exceed the $30,000.00 limit
• It is not possible to transfer money from the USA, Canada, among other countries to Brazil

Personal experience with TransferGo:

If you are looking for a company to transfer money from Europe to the rest of the world, this is a great option. In my experience, the whole process is done very simply and cheaply.

Bonus 2. OFX

Bonus 3. PayPal

PayPal is a popular platform that facilitates online payments and transactions with other parties. It is commonly used for making purchases on eBay.

While PayPal does offer international money transfer services, one drawback is that it requires a linked US bank account for withdrawing funds. However, there are alternatives available. You can use the balance in your PayPal account to make purchases at online retailers that accept PayPal as a form of payment, like eBay. Additionally, you have the option to transfer your PayPal balance to another individual.

Pros of using Paypal for international transfers:

• It’s a very easy and practical way to send/receive money between almost any two people in the world
• It’s very popular
• You can use it to send/receive payments from overseas from any person that also has Paypal (since you only need an email to open an account)
• It’s super practical – you can do everything online.
• Works for people from all over the world (although you can only withdraw the money if you have a U.S. bank account)
• There’s no minimum transaction

Cons of using Paypal for international transfers:

• You can’t take money out of your Paypal wallet (if someone sends it to you) unless you have a bank account in the United States (otherwise, you’ll have to leave it in your Paypal account and can only use the money to buy things on websites that accept Paypal, like eBay)
• They charge a 3% fee on some transfers
• They don’t use the official exchange rate (they use the retail/tourist rate instead), so you’ll lose some money when you exchange from one currency to the other

Personal experience with Paypal:

I use Paypal directly to buy things on eBay and to receive payments from a few companies that only pay with Paypal. But I don’t use it for international transfers because I think the exchange rate is bad and the options above are better, so it’s up to you.

BONUS CRIPTO:

How to do international transfers using digital currency

Digital currencies, like Bitcoin, have recently emerged as a new addition to the global financial landscape. However, their popularity is growing rapidly.

A major benefit of cryptocurrencies is their cost-effectiveness for international money transfers compared to conventional methods. Additionally, transactions can be processed in just a few minutes, regardless of where the recipient is located.

• Coinbase(for getting digital currencies like Bitcoin, Ethereum, and Litecoin)

I recommend considering Coinbase as a suitable platform for international money transfers using digital currencies like Bitcoin. Being the largest cryptocurrency exchange worldwide, Coinbase is a reputable and reliable platform.

To begin, you need to create a free account on Coinbase and provide your personal information. Afterward, you can transfer funds from your bank account to your digital wallet and purchase the digital currency of your preference. Coinbase offers three options: Bitcoin, Ethereum, or Litecoin.

Once you have acquired your desired cryptocurrency, you can transfer it to anyone globally with a digital wallet by inputting their wallet address and initiating the transfer from your own digital wallet.

When the recipient receives the cryptocurrency, they can exchange it for their local currency, such as Reais, Euros, or Dollars, and transfer the funds to their bank account using the Coinbase platform.

Coinbase’s straightforward interface and easy process make it a convenient choice for international money transfers. Furthermore, if you’re interested in investing in digital currencies, Coinbase is a reliable option due to its reputation and size.

How to invest in Bitcoins or other digital currencies

So be careful with investing in digital currencies! Don’t use money that you’ll need in short or midterm!

Pros of using cryptocurrency for international transfers through Coinbase:

• It’s a cheap way to send money between almost any two countries in the world
• It’s getting more and more popular
• You can use your bank account, debit card, or credit card to do the deposit into your digital wallet in Coinbase
• You can use it to receive payments from overseas from any person that has their own digital wallet (your digital wallet can be through Coinbase or any other platform that works with cryptocurrency)
• It’s very easy – you can do everything online
• There’s no minimum transaction

Cons of using cryptocurrency for international transfers through Coinbase:

• The value of the digital currencies still varies a lot (AKA: it’s highly volatile), so it’s possible that the amount you send may already be worth more or less by the time it arrives at the destination
• You have a pay a fee of a small percentage of the total value you deposit in Coinbase. If you use a credit card, this fee can be up to 3%
• It can take a few days for the purchase of Bitcoin to be finalized. With Ethereum and Litecoin, the buy and sell confirmation is faster
• It’s a new market and many people still don’t know how it works

Personal experience with Coinbase:

Summing up…

The 7 cheapest ways to receive, send, and transfer money abroad:

1. Wise
2. Xe
3. World Remit
4. Remitly
5. Currency Fair
6. Instarem
7. Ria
8. TransferGo
9. OFX
10. Paypal
11. Coinbase

In Brief….

When it comes to sending or receiving money globally, it’s essential to do your due diligence and compare different options carefully. This involves comparing exchange rates, transfer fees, and other relevant factors that can affect the amount of money you send or receive.

To make this process simpler, you can choose a specific amount, such as $500 USD, and test each option mentioned above to see which one provides the most value in terms of the amount received. Though it may require some additional effort, it can ultimately save you money and help you find the best possible deal.

Protect yourself against fraud and common scams with international money transfers!!

Use only the companies listed above to transfer money to trusted individuals or reputable companies with positive feedback. Do not transfer money to anyone you don’t know personally. Additionally, be cautious if a family member or friend sends you an urgent message requesting money but you are unable to contact them through phone, Skype, WhatsApp, or other reliable means.

By paying attention to strange signs like the ones below, you can tell if you’re being the victim of a scam or not….and then avoid it if you are. Think very carefully before making a transfer. If you’re not sure, don’t take the risk!

Don’t send/transfer money to people or companies:

• If you or your family/close friends don’t know them personally
• For a deposit to buy a property or a rent payment. Take note of this one because it is one of the most common scams for people that live abroad! ONLY send them if you are personally in the city where you are renting and you have personally visited the property & met with the agent/landlord of the place that’s to be rented or purchased. Seriously, this scam is a lot more common than you think….and a lot of people who move abroad get screwed by it!
• To buy something online. You shouldn’t have to use an international transfer for this, better to use a credit card or Paypal (which have payment protections)
• From a place claiming to protect you from a virus that doesn’t accept credit cards (since all trusted antivirus companies should)
• For an emergency situation that hasn’t been confirmed by a friend or family member
• To “redeem” lottery winnings or prizes….another super common scam!
• To make charitable donations. Ask for another way to contribute…be wary of any charity asking for international money transfers
• To start working as a mystery shopper. You should never have to pay for this, it’s free!
• To get a job….this is always a scam! Don’t pay a company to start working with them!
• For a credit card fee or loan. These fees are ALWAYS paid via your credit card and not through international money transfers

Use only the companies listed above to transfer money to trusted individuals or reputable companies with positive feedback. Do not transfer money to anyone you don’t know personally. Additionally, be cautious if a family member or friend sends you an urgent message requesting money but you are unable to contact them through phone, Skype, WhatsApp, or other reliable means.

Conclusion…

Planning your next trip?

Then don’t forget travel insurance! You don’t want to get stuck paying a ton of money and ruining your trip if you get sick or have an accident without travel insurance. WorldNomads is ideal for adventurous travelers, backpackers, or anyone looking to be protected during their trip. They cover almost every single activity you can image! Plus, you can have a 5% discount with the coupon codecomfort5.

Already reserved your hotel or hostel? If not, we recommend Booking.com. They have a huge selection of hotels and hostels all over the world. Plus, in most cases, you can cancel your reservation up to a few days before the check-in date without any costs!

Stillhaven’t booked your plane ticket and want to save big? Take a look at Momondo. It’s a flight aggregator that combines several other ticket search websites to make it easier for you to compare prices and make sure you are getting the best deal.

And finally, will you need to rent a car during your trip? Then check out Rentalcar.com to search and compare car rental companies from all over the world in a single website. Then, you can find the cheapest price for the best car!