Sending money abroad is a vital issue for hundreds of millions of people worldwide. Everyday people from different corners of the world send money to their families and friends who live in another country, and many others do this for business, educational and travel purposes as well.
To put it in a nutshell, the possibility of sending money abroad in one way or another, has improved the lives of many families and economies globally compared to some 100 years ago. Furthermore, thanks to the rapid development of technology and like most industries, the financial services industry has seen remarkable changes and has been transformed by the internet and digital technologies; it has become easier, faster, fairly safer and almost cheaper.
To know about these new methods of money transfer and money exchange, read Essential things you need to know about money transfer and money exchange but even the new and online methods of exchanging and transferring money worldwide are not perfect and better platforms exist that can better meet the demands of those who need such financial services. Therefore, the question here is that ‘are there any better ways to offer to those who want to transfer or exchange money?
What is P2P money exchange?
Peer to peer or person to person money transfer is that better way. It refers to transferring money from one person to another over the internet, using individuals’ banking accounts, credit cards or even cash. This method of money transfer, which is a convenient alternative to traditional payment methods, allows you to send and receive money in your country and overseas to others via a website or a mobile application. This means that it functions without physical agents. Instead the website or mobile application serves the primary point of service.
Peer-to-peer (P2P) payment services provide the users with the possibility to link their bank accounts to an app that facilitates the digital transfer of money between two people, even if they each have accounts at different banks and live in different countries. According to Bank of America’s Trends in Consumer Mobility Report, 36 percent of adults in the United States are using P2P services. [1]
How does peer to peer (P2P) money transfer work?
Peer-to-peer money transfer has a simple process; After you selected the amount of money you want to transfer and the place you wish to send it, then you upload your money from your bank account to your money transfer provider, which will then convert your money at the mid-market rate and match you up with a person sending funds in the opposite direction.
For example, if you live in Canada and you wish to transfer money to your family in France, then peer to peer service of money transfer helps you be matched with someone sending money from France to Australia. The platform takes your money and keeps it in its account and then searches to find someone who matches you and then gets the money from him as well and finally transfers them into the bank accounts of the two parties of the trade.
Therefore, these currency matching services allow people to exchange currencies of various kinds with other people from around the world and at any time, creating almost like an ‘online marketplace’ for currency exchange.
Thanks to P2P payment service, you can transfer money even when you are at home and it is 2 past midnight. The only thing you need is a home computer, a laptop or a smartphone with access to the Internet.
In addition to the ease of use due to the online nature of P2P services, through a P2P platform, you can exchange and transfer currency with others in different countries around the world almost or completely free of charge.
Most online P2P companies indeed claim to be up to a 90% cost saving to clients on international exchange and transfer fees.
This cost-saving feature of P2P money transfer and money exchange is one of the chief reasons that makes P2P payment services more and more popular among millions of customers worldwide.
Another interesting feature of P2P payment is the high speed of money transfer and money exchange that P2P provides. Compared to the above-mentioned methods, with the use of P2P services you can do what you want to do in a matter of minutes and in this way, avoid long delays which can take up to four or five working days using the previous ways of money transfer and money exchange. This means that you don’t have to pay for expensive transaction, processing, or service fees.
P2P services of money transactions are also beneficial for businesses as well as for persons in this regard. Credit and debit card payments have transaction costs for businesses of up to 3 percent of a sale, and businesses have to wait some time for the funds to clear and be transferred from the card companies to their accounts.
Cash payments have lower transaction costs, and final settlements occur in real time, which is a benefit over most credit transactions.
With P2P services, digital wallets offer the benefit of real-time payments to businesses at a price of up to 2.9 percent and $0.30 per transaction. While not a free payment option, it does allow businesses to receive payments quickly and have funds available to efficiently cover operating costs.
Having data encryption and other standards security mechanisms such as fraud monitoring capabilities from passwords and PINS to transaction notifications, P2P payment services have also a high degree of safety.
Such capabilities give the P2P users confirmation on whether users did indeed transfer money and how much. Further, the website or the mobile app through which you use P2P to transfer or exchange money will need to know the least amount of information about the recipient, meaning that almost nobody will be able to spy on what you are sharing via peer-to-peer.
That’s why according to a comprehensive Consumer Reports study of five of the most popular services, P2P payments are generally safe [2].
For all these reasons, P2P companies are growing at a fast pace. All in all, the chance to get or send money online anywhere with low to zero fees and a much better exchange rates than banks, high safety during transferring and exchanging processes, the opportunity to send money to any card (all you have to do is take advantage of a special web resource or a mobile app to transfer money from different banks), the ability to conduct money transactions through any device (if the Internet connection is available), simplified access to transaction history and also the accessibility of service 24/7 are all that make P2P payment services stand out in today’s digital world.
‘Trustply.com’, a real and perfect P2P platform
Here we introduce you to a real p2p platform, ‘Trustply.com’ where you can benefit from features that other peer to peer websites and applications do not provide. Trustply is one of the best P2P payment service platforms that offers amazing features to its users. It is a brand-new social network that is a viable tool to remove any challenge related to transferring and exchanging money worldwide within communities.
Trustply provides its users a trusty environment where they can do a totally free peer-to-peer money exchange with their friends and peers without giving even a cent to Trustply for the service, make money transfers to whomever they want really fast again for free, and even earn points by signing up on the website and starting the real p2p exchange for free.
Although as explained above, P2P platforms somehow omit the middlemen in the exchange and will result in lower, yet not totally free transaction fees for the customers, the two sides still are required to first send their money to the account of the P2P platform and the money will stay in the platform’s account for quite a time, so that the rest of the above-mentioned process can be done.
What makes Trustply to stand out and be different in this regard is that this P2P platform has a completely social network nature, where the two parties of a money transaction can directly make contact with each other and trade their currencies themselves with the price they prefer and the person they pick.
This means a real peer to peer trade where the company will not act as the middleman and therefore will not charge the parties of the trade for the service.
This is indeed a very strong and unique vantage point for users of Trustply that they can form a social network of their own with their friend and peers and based on the trust that exist among the network members, can exchange money with one another totally for free.
Trust network
This platform offers social features that help the users know trustworthy people and trade with them. Also, it lets the users identify their private “trust network” based on which they can expand their trusted connections to the friends of their trusted connections.
The trust network is a unique feature because it captures a value (trust rate) as the weight of a one-way connection between a user and others, which is private to that user. Therefore, once two users agreed on the exchange rate, they can trade directly if they trust each other, like when they are friends or friends of friends and there is trust among them.
identification
Some people do such p2p exchanges on social media platforms like Facebook, Linkedin, Telegram, etc. One very important weak point about them is that everyone there can create fake accounts with unreal identities, which makes the whole environment insecure and prone to fraud.
Trustply, however, is a social platform that has solved this very big problem. It helps its users trust each other in making things trackable in rare occasions (e.g., when someone tries to spam others or attempts fraud).
The optional “identification” feature of the Trustply website allows the users to prove that they are real humans (who can be tracked, just in case there is a complaint against them), not spammer users or bots. The users can also be verified by some affiliated members in the website, which considerably reduces the possibility of fraud.
free and quick
Trustply provides its users an experience of money exchange that takes less than 5 minutes if required match is available, and is totally free of any charge for both sides.
guarantee
Even when users of Trustply can not find their matching partner to directly exchange their currency with, or when the two do not know each other and therefore cannot trust each other, Trustply has a solution.
In such situations a governmentally registered and approved Money Exchange introduced by Trustply can step in as a third party on Trustply website and guarantee the transaction for a very little commission, which is still less than what any other P2P websites or applications demand (The possibility of price matching, if a user could find an official offer with a better rate anywhere, is also available in Trustply).
By guaranteeing a transfer, it means that the Money Exchange introduced by Trustply withholds one of the two parties’ money in a trust account so that the other party deposits the equivalent money into the first person’s account and then the Money Exchange releases the first person’s money and transfers it to the person’s account. To get more information regarding Trustply platform, click here.
Sources: stlouisfed.org | consumerreports.org
