Archive for the ‘Instant Money Transfer’ Category

What is Instant Money Transfer Service?

December 13, 2013

Instant Money Transfer Service is the process of enabling transfer of money from one person or entity to another person or entity often at another location within a very short period of time.

Although hand-to-hand physical transfer of cash can also be accomplished in an instant, it is not

categorized as instant money transfer, which is almost exclusively digital in it’s nature, unless it forms a part of such an already existing instant money transfer service.

Instant Money Transfer services are provided mainly by:

Banks

Almost all banks offer their customers the facility to instantly transfer money nationally (and depending upon regulations, internationally) either by default or consequent upon registering or paying a fee. To avail of this facility, customers must have an account with the respective bank.

Payment Service Providers (PSPs)

A number of retail Payment Service Providers like Xpress Money, PayPal, Western Union etc also offer their customers the facility to transfer money instantly. One big difference between the instant money transfer service offered by PSPs and banking financial institutions is that customers do not need to hold an account with the PSP.

Money can be transferred instantly through the following channels:

Online

Money can be transferred instantly through the online/web platform of the respective service provider, whether a bank or a PSP.

Wire

This is a mode of international transfer offered by banks through their sophisticated and proprietary networks like SWIFT, RTGS etc.

Mobile

Mobiles can be used to instantly transfer money to other accounts both at the same bank and at other banks (in case of banks), to other beneficiaries (in case of PSPs), to other mobiles and to retailers for payment of goods and/or services. Such instant transfers can be done through mobile-enabled websites, special “apps” or even through good, old SMS.

Cash

Customers can also walk into any branch of a Bank/PSP and pay cash to be transferred. In case of a Bank, the cash will be deposited and routed through their account while in the case of a PSP the customer needs to provide ID proof and the beneficiary details for the transfer to be routed.

PoS

This involves transferring funds using Point of Sale machines. The remitter can bring money to a PoS, give it to the shopkeeper, obtain a receipt and designate a beneficiary. He is given a one-time user code that is sent to the beneficiary usually via SMS. The beneficiary will use this code at a PoS where he will be given cash.

Other Means

ATMs and Telephone Customer Service can also be used to instantly transfer money.

* An Instant Money Transfer Service provides for transferring money to different locations within the same country or to any country across the world. Such transfer can be denominated in both local and international currencies.

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