How to send money to someone without a bank account?

When you’re planning on sending money to someone without a bank account, there are several considerations and if you know how to send money to someone without a bank account, this guide by DNBC’s experts will help you.

In 2017, around 1.7 billion adults around the world didn’t have a bank account. Luckily, there are alternative ways to send money quickly and securely.

Here, we’ll discover how to send money without a bank account in case you know how to send money to someone’s bank account, so you can easily send money internationally for business and personal purposes.

How to send money to someone without a bank account

Top 4 optimal options to send money without a bank account

Although modern technology has become more and more popular, many locations around the world are unbanked.

For example, the Philippines, India, Mexico and China are among the top 10 remittance-receiving nations with millions of migrants transferring money without using a bank account.

At first, the process of sending money to someone without a bank account can be challenging, but thanks to advancements in fintech, they’re available.

There are different transaction services regardless of a person’s banking situation. Here are some suggestions for you.

1. Mobile wallets

A digital wallet or e-wallet is a perfect alternative for someone without a bank account. It’s accessible on a mobile or smart tablet.

For certain mobile wallets, bank accounts are not necessary, and most don’t charge any fees for their basic services.

Some of the famous mobile wallets can name here:

Apple Pay

Google Pay

Samsung Pay

You just need to download the app on each platform, then follow the instructions for entering card numbers you would like to store in your mobile wallet.

Mobile wallets can be set up by linking a debit or credit card account, and the money your beneficiary gets is added to their mobile wallet account. These transactions are almost instant and cost-effective.

Both the sender and the beneficiary are required to have the same mobile wallet provider to avoid transfer fees. Transfers in multiple currencies are also available, although foreign exchange fees can be added.

Mobile wallets are safer than a physical bank card due to continuous improvements to fintech. If the beneficiary is overseas, you can transfer money to a mobile wallet via online payment platform.

2. Money orders

Money orders are known as postal orders – are like checks, but require no assistance from a banking service.

Money orders are a popular way to send money without a bank account. Although money orders imitate checks in some aspects, there are some important differences – a bank account is not required.

With money orders, of course, there are both advantages and disadvantages. Since no bank account information is shared, your privacy and security in your account will be guaranteed.

Money orders will be safer to send by mail than sending by cash. You can feel a sense of relief that only the final beneficiary can get the money.

However, money orders also have some disadvantages. They are not the quickest way, especially when picking how to send money overseas without bank accounts.

Money orders can take longer than alternative money transfer ways because they depend on the delivery speed of the post office and the distance to travel.

Money orders can be processed through paper slips with the value printed on the front. If you’re sending a money order to someone without bank accounts, the sender will pay for the expected value, fill in the order form.

When the money order arrives, it can be cashed out at the counter and doesn’t require bank’s support. It’s cheaper and easier to cash out the money order.

As long as the sender keeps the receipt and proof of transactions, the money order can be tracked and canceled if any. The money transfer method is available at each counter from post offices, supermarkets and retailers around the world.

3. Credit cards

Debit cards are given by banks and financial institutions without the need for a bank account.

This method is an alternative way for someone without a bank account, but there tends to be added fees and charge higher cost.

In comparison to other transfer services, paying by credit card is quick and convenient to have cash ready for pick up within minutes.

Credit cards are available from main global payment companies such as Mastercard or Visa, but they won’t be tied to a bank account.

To use this card, the sender needs to load funds into it using a card payment or cash. When a monetary value is loaded onto the prepaid debit card, the beneficiary is free to withdraw money.

Once the prepaid card safely reaches the final destination, the beneficiary can top it up in cash, or the sender deposits an online payment in the account.

4. Online money transfer services

People have widely used money transfer services for a long time and there are several trusted providers which allow you to transfer money without a bank account.

With most money transfer services, you will have various choices when deciding on how to send someone money without a bank account: online, by phone, in person, or even using a money transfer app.

Some money transfer services are available to pay in cash as well as deliver in cash, so neither you nor your beneficiary needs a bank account.

Depending on your payment and receipt method, different fees, so it’s important to compare money transfer services to choose the best providers.

Depending on the money transfer service, you may be charged fees such as: transfer service, exchange rate margin for international transfers, rapid transfers, and security.

Most providers also have the ability of tracking your transfer so you can update the transfer status.

Some considerations once choosing a transfer method

When deciding on how to send money without a bank account, there are many factors to review.

How fast your money transfer to be delivered

Depending on how fast you need the money to be delivered, you can choose one to the best. A money transfer service or a mobile wallet transfer will let your beneficiary receive money quicker than a money order or a prepaid debit card.

Level of convenience

It’s important to consider the most convenient method for the sender and beneficiary. In some cases, it can prefer to send money online so that it’s good to spend online, and in other cases, a cash pickup can be ideal.

Cost of transfer method

In fact, mobile wallet transfers don’t charge a fee, but if your beneficiary prefers cash, this method can make it more difficult to access the money.

Money orders and prepaid debit cards have nominal costs. Using a credit card to transfer money will be charged with higher fees.

Money transfer service fees vary on several factors like final destination, amount of the transfer, and current exchange rates.

Information about DNBC Financial Group

So, if you know how to send money to someone’s bank account, now in this article, you also know how to send money to someone without a bank account.

DNBC Financial Group strives to boost the best business account for international payments by sending money to someone without a bank account in the wake of technological and electronic advancement.

DNBC Financial Group offers full online payment solutions, money transactions in over 173 countries with multiple currencies, being transparent and fast delivery speed. DNBC Financial group is always willing to support you 24/7.