‘Rip off’ money transfer companies under threat in the UK

It is estimated that nearly 10% of the world’s population currently sends money to relatives and loved ones in other countries. Knowing this, it is perhaps easy to understand why so many money transfer companies have sprung up in cosmopolitan cities such as London, and why so many individuals have become outraged by the prices they are being charged to send this money.

According to recent statistics, the annual sum of remittances sent from the UK to locations around the world totals in excess of 15 billion pounds. Over 66% of these funds are sent to developing countries. According to the World Bank, the total sum of remittances in 2014 will equate to well over 278 billion pounds.

The lofty fees that many of these money transfer companies are charging for the arrangement of currency delivery has sparked outrage amongst citizens and politicians alike. Labour MP Tessa Jowell has recently launched an investigation into several of these predatory establishments, stating, “Many people who are trying to support friends and family abroad are being ripped off. Instead of their hard-earned money going towards medical bills, books or to cover the cost of failing crops, huge amounts are being creamed off by the giant money transfer companies who have cornered the market.”

Jowell is hoping to gain support for new legislation which, if enacted, would force local money transfer services to cut their fees by half during the months leading up to Christmas, as this is typically the peak time for individuals to send money to loved ones abroad. It will be interesting to observe how the target companies respond, as this is typically one of the most profitable times of the year for them.

According to Scott Paul, a senior humanitarian advisor for Oxfam, the need for new reforms in this particular market are absolutely necessary. “People all around the world depend on help they receive,” Paul stated, “and remittances are a critical part of their efforts to overcome poverty.” Whether or not these desired changes will be enacted has yet to be seen. What can be certain, however, is that awareness of this particular issue has increased dramatically.

Making the most of your money through multi-currency cards

The world of international travel and business has changed dramatically in recent years. Whereas, in previous decades, business owners could expect to engage in a few, if any, international money transfer transactions or exchanges throughout the year, this particular service has become an integral element of small, medium and large-sized enterprises across the globe.

In fact, a growing number of businesses are now dealing in multiple currencies simultaneously, largely due to opportunities for outsourcing and global collaboration, all made possible through the touch of a button. A multi-currency card is an excellent resource for those seeking to either hold or distribute a large number of currencies simultaneously without having to first enlist the help of a high street bank or private service.

One of the popular “perks” of the multi-currency card is the fact that individuals can buy the currency of their choice at a fixed exchange rate. Instead of worrying about price increases or reductions, a currency card allows individuals to “hold” money at the value they originally paid for it, thus enabling them to engage in business transactions and money transfer at a more sustained pace.

For travelers, a multi-currency card may be particularly useful, as it reduces the need for international ATM use which often results in substantial financial penalties. Additionally, it helps reduce the likelihood of identity theft and stolen cash while abroad.

A number of services are now beginning to spring up which are directly related to the multi-currency phenomenon taking the world by storm. Caxton FX, for example, is now offering users the ability to hold up to 24 different currencies at any one time. A new prepaid Mastercard is also available which allows for stockpiling of 15 different currencies as well as topping up via your preferred bank account. Moneycorp has also begun to offer a new prepaid card, dubbed the Explore, which allows customers to load up to 14 different currencies before and during use.

As can be seen, there are no shortage of options when it comes to selecting a multi-currency card. Hopefully, these products will become an integral element of international business and travel in upcoming years.

World’s First Wearable Money Transfer Watch

As the idea of the “smart watch” quickly begins to take hold of consumers’ imaginations, a number of entrepreneurial-minded companies and individuals have become to find new and innovative ways in which these products can further facilitate daily professional and personal needs.

International money transfer has long been considered one of the most cumbersome elements of traveling or multinational business, due in large part to the lack of a convenient and powerful transfer system outside of real-world, brick and mortar banking institutions. All of that is about to change, however.

Recently, the global money transfer firm World First announced that they would soon be marketing the a new app which they are billing as “the world’s first international payments app for a wearable device”. According to the developers, this new app will allow for seamless and near-instantaneous transfer of funds for both professional and personal use across multiple currencies.

Featuring a number of flashy voice commands and innovative swiping features, the new app developed by World First allows customers to buy and sell international currency, as well as engage in transfers of all sizes, in less than 60 seconds, all from the comfort of their own wrist.

This, of course, will serve as a welcome addition to the arsenal of on-the-go business professionals around the world, many of whom simply do not have the time to stop in and engage in person-to-person transactions with banking institutions. Given the fact that many of these organisations also levy hefty commission fees against customers, the attractive rates offered by World First will likely be very appealing to those who have not yet been acquainted with them.

This all assumes, of course, that wearable technology will truly become the next “hot” item on the marketplace. The public still appears relatively divided on whether or not these products should be popularized. According to a recent UK survey, more than a third of those polled stated that they would be embarrassed to wear this particular type of technology in public. Opinions are likely to change substantially over time, however, and the new wearables being developed by major software companies around the world should withstand the test of time. For customers of World First, this will definitely be welcome news. More information about World First’s revolutionary new app can be found by visiting their official website. The company has stated they are currently in the process of developing a similar app for the Apple watch.

Facebook’s newest money transfer software could bring benefits to africans

Along with the recent news that Facebook is planning on further developing, refining and extending their money transfer service which has recently found its way into the social network’s messaging platform comes a series of intriguing development opportunities for nations around the world who could use these innovations to further their own economic agendas. In Africa, for example, Facebook’s announcements regarding the future of online payments has been met with extreme enthusiasm, due in large part to the fact that the relatively scarce number of competitors within the African money transfer market has allowed those with a foothold to raise prices and fees without fear of competition.

Internet penetration within the African continent has always been a deterrent to investment from high-tech companies. That being said, an increasing number of individuals within Africa are gaining access to internet connections, making the long-term viability of Facebook’s mobile payment system in this region of the world seem all the more assured.

If Facebook were to solidify their presence within this particular arena, Africans would not only benefit from the new services provided to them, but also by the resulting decrease in fees that Facebook’s competitors would be forced to adopt in order to retain their pre-existing, likely disgruntled customer base. Price wars have always worked in favour of the consumer, and this particular scenario would likely be no different.

Given the fact that the African currencies have long been dramatically undervalued compared to their Western counterparts, the fees charged by pre-existing payment services have often severely hampered the efforts of Africans attempting to send money to one another or relatives abroad. This period of exploitation is, however, directly threatened by the affordable and efficient services now offered by Facebook to all users.

Although there is little way to predict what exactly the future will hold for Africa’s internet infrastructure, many experts believe that Facebook is only one of companies who will likely be attempting to further their agendas within this relatively untapped marketplace. First-mover advantage is very real, which means that Facebook’s money transfer system will likely become a popular tool relatively quickly. Whether it is able to maintain this advantage over time, however, has yet to be seen. More information will likely become available in upcoming months as the system continues to gain exposure and visibility with the general public.

Foreign Currency Kiosks to be launched in Tube Stations

Currency exchange has always been somewhat of a problematic issue, due in large part to the fact that so many complaints and criticisms have been levied against allegedly predatory practices occurring in both independent exchange brokers as well as more reputable high street banks. Central to these complaints have been issues of accessibility and affordability. For some, currency exchange is an absolute must, as money must be transferred to friends and relatives around the world. For business professionals, instant access to currency exchange solutions can shave off hours of commuting to their preferred foreign exchange service.

Recently, it was announced that “Fourex” machines would begin appearing in tube stations across the London Underground. According to information provided by the machines central creators, Jeff Paterson and Oliver du Toit, commuters will be able to instantly convert over 150 different currencies into British sterling. This is likely to be welcome news for the myriad of tourists who visit London throughout the year and are caught without the money they need for shopping and tourism.

Unique to the Fourex machine is the ability to return currencies that are no longer in circulation, including the Peseta and the France. Additionally, the machines will not levy commission fees against users, meaning that some may find this service much more agreeable and attractive than others in the foreign exchange industry today. Although individuals will likely receive relatively low exchange rates for now defunct currency, the ability to return this money for usable financial resources will likely prove to be invaluable for many.

In a statement regarding the future of Fourex, co-founder Jeff Paterson stated, “We have been completely humbled by the interest, excitement and investment we have received so far for Fourex, not only from multi-million pound companies such as TFL and Westfield, but from the 436 people from every corner of the globe who invested through CrowdCube”.

More information about this exciting new foreign exchange service will likely be made available in the upcoming months. These machines will likely begin to appear in various Underground stations, beginning with the heavily trafficked Blackfriars, Canary Wharf and King’s Cross stations. The Westfield Stratford shopping centre will begin to feature one of the new Fourex machines in August of this year.

More People prefer new Money Transfer services than using Banks

Why is it that money transfer has become such a heated topic of discussion for so many? Given the fact that this service is so essential for many individuals living in working in places that are not their native homes, it would seem likely that money transfer and money exchange services would become an ubiquitous element of 21st century living. That being said, it seems quite interesting to observe the strong reactions that money transfer services seem to bring out in those that use them often.

If one were to venture a guess why these service are the target of much criticism and analysis by so many, it would likely be the fact that commission fees between various money transfers differ so widely. For example, many experts in the industry consider high street banks to slightly more expensive that privately owned organisations, while other authorities consider the aforementioned banking organisation to be the only legitimate service by which money transfer should occur.

Analysts are now shedding light on consumer sentiment in this particular arena, revealing insights which may prove to be surprising for many. According to the managing director of FXcompared, Daniel Webber, “This new data from FXcompared shows that since many consumers consider rates of exchange and transfer fees as important factors when transferring money, only a minority now trust in their banks for these services.”

While this doesn’t necessarily mean that banks should be condemned for crippling fees, it does provide us with the information we need to form one significant conclusion, that being individuals are now willing to explore various alternatives to major banking institutions when seeking out a foreign transfer service with whom they would like to engage in a transaction with. In the words of Webber, “A sophisticated, often younger, majority, now undertake their international money transfers with other non-bank providers.”

For those entrepreneurs who are savvy enough to latch onto new trends as they emerge, this information may prove to be inspiring indeed. After all, it seems the time is ripe for a low-cost, highly affordable money transfer service to emerge within this dynamic and exciting marketplace.

Latest Web Design Trends

When it comes to fast-paced, ever evolving industries, digital design remains one of the most dynamic. Given the fact that so many business now rely on digital platforms such as websites to propel their domestic and global presence, professional web design remains one of the most popular and cutting-edge fields in which savvy tech-minded creatives can make a name for themselves. For the casual business, however, staying abreast of the latest web design trends may prove to be challenging, if only for the fact that such an astonishing array of activity happens on a regular basis.

Central to the new era of web design is the concept of mobile optimization. Given the fact that Google has recently announced that websites which feature “mobile-friendly” designs will be given priority within search engine rankings, a number of business owners have begun to actively refresh their pre-existing platforms in order to ensure that they don’t receive unwanted penalties from the world’s largest search engine. So, what does a mobile-optimized website look like? Essentially, the design has been configured in such a way as to ensure that mobile users are not forced to scroll excessively or navigate small menus that thumbs could wreak havoc on due to their small pixel dimensions.

Yet another key trend in modern web design is cohesive branding. Unlike the earlier generations of web design, in which all styles, fonts and colour schemes were “fair game”, web developers have, at last, adopted the same values of standard graphic designers. Professional web platforms have begun to feature a unified, streamlined design scheme which ensures that visitors are left with a strong impression.

It is also quite interesting to note that web designers have begun to research and evaluate the design trends occurring throughout their industry vertical, exploring perceived strengths and weaknesses and using them to their advantage within their own particular platforms. Because of this, even a casual perusal of industry competitors will reveal similar design attributes that are slowly becoming synonymous with the particular type of business being explored.

Content has slowly emerged as the true “king” of web design. Although videos and images remain important tools of marketing professionals, studies continually show that intelligent, thoughtful content remains the primary vehicle through which business owners can propel their visibility forward and receive higher rates of organic search traffic. It will be interesting to observe how these trends evolve over the short term!

PayPal to buy online Money Transfer Company for $890 Million

In the world of modern technology, success often leads to two outcomes: a near-celebrity status among computer geek and digital wizards, as well as a lucrative buy-out offer from one of the world’s tech monoliths who would rather spend a pretty penny acquiring you than compete with you. Such is the case with PayPal, who recently announced that they were going to purchase Xoom Corp for a breathtaking $890 million deal. With the payment being made completely in cash, this is staggering from the online money transfer company.

While some may consider this a shocking move, it is important to remember that PayPal is under pressure to develop and expand their platform quickly after announcing that they would soon be leaving the watchful umbrella of eBay. PayPal’s incoming CEO, Dan Schulman, has made it clear that the company would take an aggressive and dynamic role re-asserting themselves in the marketplace once their autonomy has been finalised.

Most importantly, this new deal leads many witnesses to realise just how important the world of online money transfer has become. Regardless of the currency in question and the intended purpose of the transfer, the fact remains that money transfers occur around the world virtually every second of every day. By developing a powerful software platform on which these transfers can be facilitated, companies such as Xoom are cornering a fabulously lucrative corner of one of the world’s most in-demand marketplaces.

It will be very interesting to see exactly how PayPal continues to deploy their strategy in the upcoming weeks and months. If this recent acquisition is any indication of what observers can expect to see, it is almost guaranteed that PayPal will make headlines more than once. For those who do use PayPal on a regular basis, these services will not be affected by the company’s decision to depart from eBay. Arguably the largest and most successful online money transfer service of all time, PayPal will remain a venerable monolith of the internet and legendary e-commerce success story for years to come. Here’s hoping that this transition plays out smoothly and efficiently in the upcoming months.

Staying Ahead of Money Transfer Scams – What You Need To Know

Although money transfer and foreign exchange services are an absolutely indispensable part of the national economy, the point must also be made that these services have their fair share of problems, most notably the large number of scams and other nefarious activities that have penetrated the industry. According to Financial Fraud Action UK, an advocacy group to identifying and uncovering fraudulent schemes related to money transfer and other finance-related activities in the UK, an estimated 23.6 million pounds sterling were lost in 2014 to savvy fraudsters who preyed upon both local residents and tourists alike.

As part of their research, the FFA UK has identified some of the most common schemes used by those hoping to perpetrate money transfer fraud. The FFA UK has placed particular attention on the “phone scam”, a scheme in which fraudsters call individuals and masquerade as officials from their designated banking institution. Essentially, the fraud works as follows: the scammers often “spoof” the number of the bank in question, making it appear as if the bank is actually calling when caller ID systems are used. At this point, the scammer will tell the individual that fraud has been detected on the account and that they must quickly move their funds into a “safe” account in order to ensure that they are fully protected. This account is, of course, merely a vehicle through which the scammers can then gain access to the available funds, often leaving the victim penniless.

Through their research, the FFA UK discovered that nearly 70% of UK residents had received fraudulent propositions from scammers pretending to represent banking institutions throughout the last year. With this in mind, it is even more important for UK citizens to remain perpetually vigilant and ensure that they do not fall prey to career scammers.

Banks throughout the UK are requesting that individuals who believe they have been in contact with money transferscammers contact their offices immediately in order to report the activity so that they can properly warn the rest of their customers. Only through continued vigilance will such criminal activity be effectively thwarted.

Major bank set money aside to refund customers for wrong foreign exchange payments

If there wasn’t enough grief already in the world of foreign exchange, the latest news emerging from Barclays is likely to cause a new round of complaining and frustration amongst British travellers. According to a recent report, an internal probe within Barclays discovered that the company had been exchanging currency for their customers at incorrect rates between the years of 2005 and 2012. Essentially, customers who had visited the bank during this period in order to exchange domestic funds for various international currencies were likely given less money in return than they had rightfully deserved. Now that the probe has unearthed this controversial information, Barclays has announced that they are setting aside nearly 290 million pounds sterling in order to ensure that they can properly compensate all of those who may have been “short-changed” by this oversight.

It seems as if stories such as this are abundant throughout the foreign exchange industry. Over the past several years, a number of high-profile controversies have occurred regarding the rigging of the wildly frenetic foreign exchange markets and bureau de change locations. In many of these scenarios, banks found guilty of illegal actions in the fx markets are now being sued by their former customers.

It is also important to note that this is not the first substantial monetary loss that Barclays has incurred this year. In May, Barclays was forced to pay a 1.53 billion pound fine due to accusations of fx market fixing. In another recent incident, it was discovered that Barclays employees were verbally offering customers less than optimal exchange rates on foreign currency and then keeping the difference between their stated rate and the actual exchange rate at the time.

According to David Buik, a broker with Panmure Gordon, the fact that Barclays has taken the initiative and announced this new compensation package for their clients is an attempt to minimize the fallout from the situation at large. Transparency has also been an issue in the fx markets, and yet, in recent years, it seems as if bureau de change locations and other foreign exchange services have developed a particular dubious reputation. It will be very interesting to observe what, if any changes will be made in both the short and near future to ensure that these types of problems are properly dealt with before they become a public grievance. If banks such as Barclays are to preserve their relationship with the general public, scandals such as this must come to an end as soon as possible.

Category: Money Transfer Software