Currently, credit cards companies are working to expand their service when it comes to wiring money. Many notable credit card companies have started usingpre-paid credit cards to make it easier for their customers to transfer money online.
The model is as follows; The sender simply goes online and opens an account, then submits the amount and the recipient . The company gives the receiver a pre-paid credit card and secret PIN which may then be used as any conventional credit card, at any ATM, or toward any purchase. If the sender wishes to transfer more money they simply go online, and the money goes straight onto the card the recipient is already in possession of.
Could it be? Have we seen the day we as consumers need no longer carry cash? Some businesses are already attempting to eliminate traditional paychecks, so people have begun having their paychecks transported directly into bank accounts. Many businesses are also turning to online companies to pay employees
So what does all this mean for older, more conventional money transfer services? Many experts have decided the number of people using credit cards or the internet to wire money will surely increase.
Many location based-services have come to grips with the fact that their value will dwindle over the years as more people turn to credit cards to wire money online. To fight back, many location based companies have gotten in with big-name banks and it is projected that by the end of 2009, most of these companies will be offering their services through those banks. And although most banks already have a transfer system set, this move might possibly be the swaying factor that keeps those businesses above water.
The model for companies such as these is simple. If you use a bank to wire money you will pay a flat rate whether you choose to send $100 or $1000. Location-based services charge depending on the amount sent.
So why would anyone choose to use a location-based company instead of a bank? Well location-based services now let the sender to wire the money to a specific, whereas a bank only allows you to send the money from one bank account to another.
Regardless of how the money transfer world swings 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 sent will only drop.
Tags: cash, credit card, Credit cards, debit card, internet, money, money transfer, online, online money transfer, send money, send money online, transfer money, transfer money online, web