Cross-border transfers support the continuous economic growth and attractiveness of the United Arab Emirates (UAE) as a work destination. The UAE has established itself as a hub of thriving economic activity, drawing in a varied spectrum of expats, such as business owners, laborers, and professionals with specialized skills.
Various official international money transfer channels have come up to accommodate the significant volume of cross-border transactions. They usually offer a seamless wire transfer service to exchange houses and banks.
In 2020, the UAE witnessed an impressive $43 billion in cross-border remittances, establishing it as the second-largest source of outbound remittances globally, surpassed only by the United States.
The business opportunities for Money Transfer Operators (MTOs) also improve when the market is so big. But who are they exactly?
In simplest terms, Money Transfer Operators (MTOs) are businesses that help you transfer money from one person or location to another. To do this, they act as the middlemen to the parties that want to send or receive funds across different regions or countries.
These operators make it convenient by offering services like wire transfers, online transactions, or cash pickups at designated locations.
Despite that, MTOs are essential in facilitating money transfers, especially across borders. That’s why they require strict monitoring and guidelines. In UAE, this is often related to the “Standards for the Regulations Regarding Licensing and Monitoring of Exchange Business,” a set of guidelines provided by the Central Bank to regulate any exchange-related cross-border transfer of money.
So, when someone wants to send money to someone in another country, they can approach a licensed MTO. The sender provides the necessary amount of money, and the MTO facilitates the transfer to the recipient through their network of agents or partner institutions in the recipient’s country.
It is that simple.
So, let’s understand these concepts better.
These businesses can work in multiple different ways as per their business models. But in general, the movement of funds from one person or location to another typically works in the following manner:
Transferring money online from UAE to India, the UK, Philippines, Pakistan, or other countries is now hassle-free and seamless, thanks to technological advancements. From money transfer operators to payment apps, you can conveniently transfer your money to another country within a few minutes.
Let’s see how you can transfer money from UAE to other countries.
The mobile wallet is the most convenient way to transfer money locally or internationally. Your money is sent to another bank account or wallet within a few taps. The Payit mobile wallet app offers competitive rates to send money to other countries.
Wire transfers are used by exchange houses to move money from one person or entity to another electronically. Typically, this is done between different banks or financial institutions. First, the sender sends the money to the exchange houses.
After the sender provides funds to the exchange houses, they are transferred to the intended recipient’s bank through a secure channel. Once the bank receives the funds, they are authorized and released to the recipient.
Sending money internationally through a mobile banking service from your bank is a traditional method many people use. You can send money to your home country online or through mobile banking.
Banks charge high commission fees for currency exchange, making it an expensive option compared to online money transfer services. While it’s convenient, it may take slightly longer than other options.
Payit digital wallet app is a secure and fast way to transfer money internationally from the UAE. Here’s why you must use Payit for your money transfer needs.
No Hidden Fees: Payit provides the most competitive rates that benefit the customers with no hidden or additional fees.
Offers and Deals: The mobile wallet app has a range of offers and discounts on domestic and international brands for lifestyle, travel, and gifting.
Send Cash or Transfer to Bank Account: Payit is a convenient platform that easily transfers funds to your loved ones. You can either send money via Moneygram or deposit cash directly into their bank accounts.
Send Money to More than 200 Countries: As the world becomes more interconnected, you can effortlessly experience the convenience and speed of sending money to over 200 countries.
No Waiting Time: Skip long queues and unnecessary fees with the Payit e-wallet app. Enjoy fast and seamless transactions.