Every day, credit cards">credit cards companies are are bearing down to increase services when it comes to wiring money. Many notable credit card companies have begun usingpre-paid credit cards">credit cards to make it possible for consumers to wire money online.
The model is as follows; The sender simply goes online to open an account, then submits the amount and the recipient . The company gives the receiver a pre-paid credit card and secret PIN which can be used as any accepted credit card, at any ATM, or toward any purchase. If the sender wishes to send more money they simply go online, and the money goes right onto the card the recipient already possesses.
Could it be? Have we seen the day we as consumers need no longer carry cash? Some businesses are already trying to do away with traditional paychecks, so people have started getting their paychecks transported directly into bank accounts. Many businesses are also using online companies to pay employees.
So what does all this mean for older, more conventional money transfer services? Many experts claim the number of people using credit cards">credit cards or the internet to send money will surely increase.
Many location based-services have realized their market share will dwindle over the years as more people use credit cards">credit cards to transfer money online. To take a stand, many location based companies have teaming up with with big-name banks and it is projected that by the end of 2009, most of these companies will be offering services though those banks. And although most banks already have a transfer system set in place, this move could possibly be the swaying factor that keeps those businesses above water.
The model for these companies is simple. If you decide on using a bank to wire money you will pay a flat rate whether you choose to send $100 or $1000. Location-based services on the other hand, charge depending on the amount.
So why would anyone choose to use a location-based company as opposed to a bank? Well location-based services now give senders the opportunity to to wire the money to a specific, whereas a bank only allows you to send money from one bank account to another.
Regardless of how the money transfer world shifts in the coming years, two things are clear; it will gradually become easier to use a credit card to transfer money online and the time it takes to get that money wired will only drop.
