How you can use peer-to-peer money transfer services

Save money and enjoy fast processing times when you send money overseas using a peer-to-peer money transfer service.

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Peer-to-peer money transfers match people who are trading two specific currencies with each other, generating savings by cutting out the middle man.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
USD 200 1 day MYR 50.00 0.747 USD
7,440
Exclusive: Use code FINDER10 to receive US$10 off your first transaction.
InstaReM offers simple transfers with a flat 0.5% transfer fee for most transfers.
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Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 10 Same day AUD 0.00 0.747 USD
7,468
Airwallex can help you make business payments to 23+ currencies using competitive interbank rates and no fees for most transfers. Go to site Show details
AUD 250 1 - 2 days AUD 0.00 0.747 USD
7,468
$0 transfer fees for Finder customers.
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
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AUD 2,000 1 day AUD 0.00 0.747 USD
7,468
TorFX guarantees to match any competitor's exchange rate. Conditions apply.
TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.
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AUD 1 Same day AUD 0.00 0.746 USD
7,461
XE Money Transfer can help your business unlock international transfers. Forward contract and limit order options available. Go to site Show details
AUD 1 1 day AUD 0.00 0.747 USD
7,468
Open bank accounts in Australia, the UK, US, Canada, Japan and Europe. Send and receive funds with zero fees for large sums, including same-currency supplier payments. Go to site Show details
AUD 2,000 1 day AUD 0.00 0.747 USD
7,468
Send guarantees to match any competitor’s exchange rate. T&Cs apply.
Send provides fee-free transfers via its 24/7 multi-currency payments platform with real-time quotes.
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Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.

You can use the table above to compare peer-to-peer money transfer services based on fees, minimum transfer amounts and transfer speed. If you're interested in finding out more about a transfer service, click "More", or if you'd like to open an account, click "Go to Site".
Optimized-How peer-to-peer international money transfers work Although international money transfers are traditionally conducted via banks, it’s now possible to take advantage of peer-to-peer banking services for money transfers. These services provide networks where people can share access to currencies without the need of a central server, allowing you to cut out the middle man. As a result, the money transfer process is simplified and you can save money.

Keep ahead of the curve with daily currency exchange rate alerts

How do peer-to-peer money transfers work?

The process of a peer-to-peer money transfer (also known as a P2P money transfer) is simple.

First, you need to select how much money you wish to transfer and where you’re sending it. You can then upload your funds to your money transfer provider, which will then convert your money at the mid-market rate and match you with a person sending funds in the opposite direction.

For example, if you’re sending money from Australia to the United States, you’ll be matched with someone sending funds from the United States to Australia. This allows customers to cut out the banks and enjoy better exchange rates and lower transaction fees.

Peer-to-peer vs bank

Lauren wants to send $1000 to her mother in the UK. In order to find the best possible money transfer deal, she compares the services offered by her Big Four bank with a peer-to-peer money transfer service like Wise or CurrencyFair. The results can be seen in the table below.
BankPeer-to-peer money transfer service
Amount transferred$1000$1000
Exchange rate£0.52£0.55
Fee charged$25$2
Amount received£507£548.90

As can be seen in the example above, if Lauren sends her funds using a peer-to-peer service, she will be sending an extra £41.90.

How do I compare peer-to-peer money transfer services?

You’ll need to take the following features into account when comparing peer-to-peer money transfer services.

  • Exchange rates. The exchange rate is a very important factor when determining how much money you can save, so look for the company that offers the best rates. However, keep an eye out for companies that suck you in with great rates, but then slug you with high fees.
  • Fees. Make sure you’re aware of all the fees attached to your transaction. Does the company charge a flat fee or is it a percentage based on the amount you’re transferring? Is the fee waived entirely if you transfer more than a certain amount?
  • Minimum and maximum transfer amounts. You’ll need to check how much a company will allow you to transfer since minimum limits might be too high for some and maximum limits may be too little for others.
  • Transfer methods. Compare whether you can only lodge your transfer online or whether there are phone and in-person options available as well.
  • Other extras. Compare whether providers allow you to lodge forward contracts, meaning you lock in an exchange rate for a transaction that will occur at a later date, or limit orders, which is where you lock in a minimum exchange rate and the transaction is not completed until the market fluctuates and your chosen rate is available.
  • Customer service. Is the company known for providing excellent customer assistance? Is there an online help centre and live chat available? Can you email or phone for support and what are the hours that each provider’s support centre is open?
  • What currencies are available? You’ll need to compare which currencies each provider offers and which destinations you can send money to.

Compare peer-to-peer money transfer services

What are the pros and cons of using a peer-to-peer money transfer service over a regular service?

Pros

  • Better rates. Peer-to-peer money transfer services usually offer better exchange rates than banks.
  • Lower fees. You’ll typically pay less to transfer money via one of these providers than you would through a bank.
  • Fast. Peer-to-peer money transfer services regularly offer faster processing times than banks, with transfers often able to be completed within one business day.

Cons

  • Supported currencies. While more supported currencies are added all the time, as peer-to-peer money transfer providers are relatively new, they do not yet offer the same number of exotic currencies and transfer destinations as major money transfer services.

Are there any risks?

When you’re making an international money transfer, it’s important to keep an eye out for exchange rates and fees. Poor exchange rates can eat up a big chunk of your money if you’re not careful, while hidden fees can be a nasty surprise if you don’t read the fine print before lodging a transfer. It’s also essential that you ensure you are dealing with a reputable company. Do your research before you commit yourself, so that you don’t end up the victim of a dishonest provider.

FAQs

International Money Transfer Offers

Important Information*
Logo for Azimo International Money Transfers
Azimo International Money Transfers

New customers use code AZIMO50 to get GBP 5 off when you transfer GBP 50+. Valid till 31 October 2021. T&Cs apply.
Azimo sends money directly to a bank account or over 280,000 cash pick-up points. It also has fast transfers to 50+ countries.

Logo for TorFX International Money Transfers
TorFX International Money Transfers

TorFX guarantees to match any competitor's exchange rate. Conditions apply.
TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.

Logo for MasterRemit International Money Transfers
MasterRemit International Money Transfers

New customers get their first transaction for free with code FIRSTFREE. T&Cs apply.
Send money in minutes at competitive exchange rates with this Australian money transfer service.

Logo for OFX (Ozforex) International Money Transfers
OFX (Ozforex) International Money Transfers

$0 transfer fees for Finder customers.
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.

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6 Responses

    Default Gravatar
    mickApril 12, 2016

    I am going to Europe in February 2017 which is 9 months away and I want to buy euros when the AUD is at its highest. If this were to happen in 4 weeks time and I entered into a peer to peer transaction then,

    1. how and where do I collect my funds?
    2. is it possible to have a forward contract like this or not?

    If this sort of transaction requires a bank account then it would be possible to use a low cost forex company and park the funds. The real issue is that it is nigh well impossible to open a banking account in Europe unless you reside there. I have tried. Hence the interest in peer to peer transactions.

    If all else fails meeting the counterpart when one half or the other arrives overseas seems like an option, where a physical exchange of funds is possible.

    Getting rather messy!

      Default Gravatar
      HarryApril 13, 2016

      Hi Mick,

      Thanks for your question.

      Unfortunately you cannot use a peer-to-peer currency exchange service to pick up money in Europe unless you have a bank account there.

      Peer-to-peer international money transfer services like Transferwise and Currency Fair don’t offer limit orders as well, so it’s generally not possible to conduct these.

      Alternatively, you may want to consider bringing a debit card overseas for your travel. we have a dedicated page for you to compare Australian debit cards for overseas travel or overseas shopping online.

      I hope this helps,

      Harry

    Default Gravatar
    NevilleDecember 12, 2015

    My recipient in Chiang Rai Thailand does not have a bank account, is there any other provider besides Western Union that will be able to facilitate a cash transfer?
    Thanks

      Avatarfinder Customer Care
      ShirleyDecember 14, 2015Staff

      Hi Neville,

      Thanks for your question.

      Moneygram and Worldremit also offer cash pick up options. Please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you initiate money transfer.

      Cheers,
      Shirley

    Default Gravatar
    CyprienFebruary 10, 2015

    I am in Rwanda,I would like to use World Remit and i realise that rwanda is not eligible in your list.how to do?

      Avatarfinder Customer Care
      ShirleyFebruary 11, 2015Staff

      Hi Cyprien,

      Thanks for your question.

      There are number of organisations that may be able to assist: MTN Mobile Money Online, Ria Financial Services and I&M Bank.

      Your local bank may also be able to assist with this transaction.

      Cheers,
      Shirley

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