They say that money makes the world go ‘round, but not every person in the world has a bank account. In fact, according to the World Bank, more than 30% of the current world population does not have a bank account. In some countries, less than 15% of the local population has one, and even in the US, 25% of households are unbanked.
Different reasons lead people to get by without a bank account. They may include problems accessing banking services or acquiring the IDs needed to open an account; a lack of trust or understanding of financial services; failure to meet the minimum balance fees, and more.
Fortunately, there’s a solution to every problem. This is how to send money to someone without a bank account.
There are two ways you can bypass this obstacle and send money to someone who is currently unbanked.
- Cash deposits and pick up: Certain financial corporations specialize in money transfer solutions and allow customers to deposit their money physically. This means that you can send the money via mobile and ask your family member or any other beneficiary of your choice to visit their local pickup point, which can be a shop that offers money transfer services, and physically collect it by presenting an ID that matches the details on the online money transfer service. This solution guarantees that the money you transfer will reach capable institutions, but it’s important to pay attention to the fees, as they tend to be relatively high. Rewire, for example, offers incredibly competitive fees of up to 1%. In addition, cash pick up is limited to the physical locations of such corporations, which residents of small, peripheral villages might struggle to reach. This solution requires a different state of mind in an online world that is used to access anything, anytime, anywhere.
- Mobile wallet: Speaking of solutions that are available everywhere, mobile wallets are an accessible option worth getting to know. Certain financial services received a local license that allows them to offer online banking solutions to customers who do not have a bank account. In the Philippines, for example, two of the most well-known and established companies are Gcash and Coins.ph, with the latter focusing on Bitcoin as part of its solution. Both mobile wallets turn users’ smartphone into a virtual wallet that can receive money quickly and easily, no bank account required.
You can learn how to send money to someone without a bank account using each one of these options.
Whichever solution you choose, it’s important to make sure that it only involves established and serious financial organizations. Don’t be tempted to trust unfamiliar companies that offer low fees and can place your hard-earned money at risk. If you’re not sure who to trust, reach out to our experts or ask our community members for help. That’s what we’re here for.