Modern vs. Conventional Remittances - What Should You Choose?

Do you need help choosing modern vs. conventional methods of global money transfer? In this article, you will learn the details of both remittance methods and will find the best for you! From an early age, the trend of remittance is widespread. Many people migrate to different countries and send their families to aid and support them. Remittance services are the only way for all immigrants to stay connected with their families despite more considerable distances. Globally, 281 million people are living in foreign countries. According to the World Bank, migrant workers sent almost $794 billion to their families just in a single year.
 

The digital remittance market is growing, and the number of digital services users will increase to 18.74 million by 2028. Conventional remittance methods include traditional banking and money orders. Conversely, modern remittance methods include digital banking and online remittance transfer services. Modern remittance services are fast, reliable, and secure, whereas traditional methods are time-consuming but secure. Both methods have perks and drawbacks, which are in the article below.

Choosing between Modern vs. Conventional Remittance Services

Every migrant looks for the best way to send money online to their families. In this digitalized world, online services have become convenient and reliable. Let's have a look at the details of both methods.

Traditional Remittance Services

Previously, traditional remittance services were the only way for migrants to manage their finances overseas and send money to their families. Following are the two common types of conventional remittance services

Traditional Banking Services

Conventional banking services are reliable because they keep a permanent record of all your transactions. It usually takes 2-3 working days for a traditional bank to send money, and you must wait for currency exchange. They are safe, but unlike digital banking, these banks cannot be used for multiple purposes and are not that efficient.

Money Orders - Postal Services

Money orders mean buying a paper of the same worth you want to send to your loved ones. They are highly secure because no one other than a receiver can cash the cheque like paper. The only recipient mentioned in the paper can withdraw the money.

Perks of Conventional Remittance Services

• Conventional remittance services, such as traditional banks and post offices, are highly secure because they are registered.
• There is no risk of fraud or scam, and the money will reach the receiver within the defined time.
• These services are reliable and connected with global networks.

Drawbacks of Conventional Remittance Services

• Traditional remittance services take time and effort. You cannot make instant global transfers through them, and it usually takes 2-3 days to send money.
• These services are inconvenient because remittance receivers must repeatedly visit post offices or bank branches to complete the formalities.
• Conventional services are slightly more expensive than modern services.
• You have to exchange money in the desired currency before sending it.
• You have to consider the timings of the banks because they cannot serve you 24/7.

Modern and Digital Remittance Services

As a result of digitalization, many modern remittance services have been introduced, such as digital banking, online remittance transfer services, and digital wallets. These services use advanced technologies and serve different purposes.

Digital Banking

Digital banking uses advanced technology to send money abroad. Unlike conventional banking, it sends money in a few minutes. You can conveniently manage all your financial matters through digital banking apps.

Online Remittance Services

Nowadays, online remittance services are trending for their advanced features. You can get real-time exchange rates and real-time transactions through online remittance services. Services like ACE Money Transfer allow you to make a budget on the ACE app, permanently record the data and get a receipt. ACE works with blockchain technology, which makes remittance more powerful, easy, and secure.

Perks of Digital Remittance Services

• Digital services are user-friendly and easy to operate. Just with a few taps, you can send money to the desired location.
• Digital remittance services are highly affordable and cost-effective.
• They are highly convenient as you don't need to visit any physical branch
• These services are highly accessible because you can operate them on your phones and laptops
• They are not restricted by time or palace, and you can send remittance at any time on any day, such as holidays, new Year, or Christmas
• The palace does not restrict you, as you can make transactions while traveling
• They provide high-speed transactions. It just takes a few seconds to send money to other countries
• They provide real-time currency exchange rates
• Services like ACE Money Transfer provide you with favorable and convenient exchange rates.
• They work with low fees
• These services use blockchain technology to keep your data safe.

Drawbacks of Modern Remittance Services

• The only drawback of digital remittance services is the risk of security. Although not all modern remittance services are secure, there is a great risk of cybercrime.
• Digital services require accessibility to the Internet and digital devices, but in rural areas of multiple countries, there is no access to the Internet.

What Should You Choose? Modern vs. Conventional Remittance Service?

Modern remittance services offer numerous perks over conventional services. In this digitalized world, you must choose a modern remittance service because it allows you to fulfill multiple financial duties. You can make an online money transfer to your family, invest globally, and clear your financial dues to your homeland.
 

You must research a reliable modern remittance service. Research thoroughly and look for registered services with IP. Check the reviews of a service and then choose it. ACE Money Transfer is a leading remittance service with a technologically empowered feature. It uses blockchain technology, encryption, 2FA, and SSL to ensure your security. It helps you track your transactions and keep a record. You can download the receipt for each transaction, save information about recipients, reuse previous details, and enjoy financial management.
 

Conventional and modern remittance methods serve different benefits and drawbacks. Conventional methods are highly secure and reliable. The old methods are place and time-restricted. Also, you can only send a certain amount for a money order, and if you want to send more money, you have to buy two papers for money orders. These modern methods are highly convenient as you can send money anytime. You can make larger and numerous transactions at a time. These methods are secured by blockchain technology that serves many other advanced functions. Digital remittance services are affordable and reliable for everyone to use.

Revolutionize Your Remittance with Affordable and Instant Transfers!

Sending money to a different country requires proper financial means. For many years, fintech companies have been working to improve remittance service methods. Conventional remittance services were not very common and accessible to everyone. Although they were secure and reliable, they had a significant transaction limit. Traditional banks and money orders are the two common conventional remittance services, but nowadays, only a few people use them to send money. People have been directed towards modern remittance services for the money transfer because of their numerous benefits.
 

Considering the perks and drawbacks of both methods, it is better to use modern remittance services because they are more convenient and affordable. You can make instant transactions at affordable prices. Also, you can get real-time exchange rates but need a reliable online remittance service. More than a million satisfied customers recognize ACE Money Transfer significantly. It is highly affordable and provides favorable exchange rates. The blockchain technology of ACE allows you to track your transactions, keep a record, and reuse the information when sending money.

FAQs

What are the modern methods of sending money?

Modern payment methods include digital remittance services, mobile apps, banking, and wallets. One popular remittance service is ACE Money Transfer, which provides top-notch services to its clients.

What is the difference between conventional and modern remittance methods?

Conventional remittance services use traditional methods of sending money through money orders. At the same time, modern methods use advanced technological features like blockchain, encryption, and real-time transactions in real-time currency exchange to send money.

What are the drawbacks of modern remittance services?

Security concerns and cybercrime issues are the major drawbacks of modern remittance services. Loss of personal information and money scams can harm individuals.

What are the advanced features of ACE Money Transfer?

Advanced features of ACE include encryption, 2FA, blockchain technology, SSL, a “reuse button,” a tracking option, and a history-keeping record, making ACE a reliable and effective service. Moreover, you can enjoy real-time exchange rates and transactions with ACE.

How do you send money globally through ACE Money Transfer?

You can send money globally through ACE by creating an account, logging in, and adding your details. Add the receiver's details, enter the country, choose the amount, and connect with your bank. Click “ACE it” to send money.
 

Reference Links:

https://www.statista.com/outlook/fmo/digital-payments/digital-remittances/worldwide