July 18, 2022, 4:32 pm | Read time: 4 minutes

Whether you’re shopping online, have friends or family abroad, or are simply vacationing far from home, at some point you’ll need to make an international transfer. You can go to the bank—or use apps or online services.

Transferring Money Within the EU: No Problem

If you want to transfer money within Europe, it’s now completely hassle-free via online banking. The Single Euro Payments Area (SEPA) now includes almost 40 countries—though not Ukraine, for example. Money transfers to countries outside the SEPA area, however, are not as straightforward. In these cases, it means: forms, forms, forms.

However, things have changed. Various providers have recognized how complicated the process is with banks and now offer their own online services and apps. As you might guess, this convenient money transfer isn’t free. Therefore, it’s worth looking closely at what’s cheaper for you—the trip to the bank or transferring money abroad via an app.

One more note: If you transfer amounts over 12,500 euros abroad, you generally need to report it according to Section 67 of the Foreign Trade and Payments Regulation. Otherwise, you risk a fine of up to 30,000 euros under Section 19 of the Foreign Trade and Payments Act. Whether you need to report, for example, financial support for your child studying abroad, should be clarified with your bank in advance. There are exceptions to the reporting requirement.

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Provider Overview: International Money Transfers

The list of providers for money transfers outside the European SEPA area is steadily growing. It includes lesser-known names like Monese, OFX, Skrill, Remitly, Ria, and TransferGo. However, well-known names such as Azimo, Moneygram, PayPal, Western Union, Wise, and World Remit also appear. We would like to briefly introduce some of the more well-known names and their apps.

Azimo

With the Azimo app, you can generally transfer money online to any country. You can freely choose the currency. You can also determine the payout method:

• Transfer to a bank account,
• Cash payout,
• From phone to phone,
• Via SWIFT transfer.

The money transfer with the Azimo app is as simple as online banking. You only need to choose from the four payout methods, as the fee is calculated based on this. The app and the Azimo website provide transparent information about the fees and exchange rates.

PayPal

PayPal is likely familiar to most people who are regularly online. Therefore, the operation is also very familiar. By entering an email address, you can transfer money to another person anywhere in the world, provided they also use PayPal. The only difference from a “normal” PayPal transfer: If the money is not transferred in euros, PayPal charges a fee.

If you know the person well to whom the money is to be transferred, PayPal is probably your best option. For other people or organizations, it’s better to make the transfer through another provider or via bank.

Western Union

Western Union has been considered a well-established provider of international transfers for many years. The U.S. company operates its own branches in many countries, including Germany. Since many customers now handle most things via smartphone, Western Union also offers its own app. This is as easy to use as any other banking app. However, Western Union charges high fees compared to other providers for its good reputation. But you can be sure that your money will be reliably transferred.

Also interesting: What can the WU+ smartphone account from Western Union do?

Wise

Wise is one of the rising stars of the past decade. Founded in 2011, over twelve million customers now use the money transfer service. With the Wise app, you can transfer money to 80 countries in 50 different currencies. However, you need a Wise account for this. It’s worth it if you regularly receive money in other currencies. Wise offers the option to ‘park’ this money in the account, allowing you to benefit from exchange rate developments.

Conclusion on Apps for International Transfers

Online, you’ll find countless providers for international money transfers. You need to compare for yourself whether an online or app transfer is worthwhile. With Western Union and PayPal, two heavyweights offer their apps for international transfers. Especially PayPal is completely sufficient for irregular payments to friends abroad.

Since financial transactions are generally a sensitive topic, all the mentioned apps meet high security standards and comply with current protocols. However, if a money transfer via app still seems too insecure to you, you can, of course, continue to go to your bank.

Sources

• N26
• Gesetze im Internet