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Money Transfer Systems

Money Transfer Systems

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Published by MainSq

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Categories:Types, School Work
Published by: MainSq on Apr 19, 2011
Copyright:Attribution Non-commercial

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05/12/2014

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Modern money transfer systems
Introduction
Money is an essential tool in our day to day lives and as a consequence, efficient ways of getting it from point to another are also an essential part of life as well. The systems shouldfast, secure and also guarantee the client that the money will certainly get to the intendeddestinationOver the years, various ways of transferring money were used but none are more secure andfaster than the modern money transfer systems. Most of the modern money transfer entailsnon-cash transfers i.e. there is no physical movement of money from one point to another. Of the current systems, the most common include use of banks to make account to accountmoney transfers, use of wire transfers, electronic funds transfers, and email money transfers.
Modern money transfer
In Europe and other well developed economies, money transfer systems such as the banktransfers are the most common form of payment. Therefore, money transfer is an essential toolin that it facilitates purchase of goods and services, payment of bill etc. through the use of debitand credit cards, the velocity/ speed of money in the economy is enhanced.The evolution of money transfer systems reached its peak with the introduction of internetcurrency. This allowed purchase and sale of commodities and services over the internet. Withthis, there was a need for some form of banks to facilitate the payment and receipt of moneyover the internet without utilizing the services of conventional banking systems. Theseinternet banks have grown over the years and the fact that they can actually be linked toclients bank accounts has made their popularity grow over the years.The latest innovative way of transferring is the use of mobile phones. This was the brain child of Safaricom, a Kenyan mobile phone service provider. The service known as MPESA helps intransfer of money and is quite helpful to the un-bankable in the society as it only uses onescard and other national identification documentation to use. One does not have to have anaccount of some form with the banking institutions as is the requirement with most othermoney transfer systems. The service is slowly catching up in other parts of the World.
Cost of money transfer
The money transfer service providers usually charge certain fees depending on the quantity of money as well as the distance of money transfer. Money transfers across boarders are usuallysubject to higher commissions/ charges. To facilitate money transfers to different locations in

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