CurrencyFair has joined the field of tech-savvy companies disrupting the international currency transfer market. Read on to see my CurrencyFair review.

The last couple of years has seen a few new players launch into the world of international currency transfers. They all have a slightly different take on nudging out the big banks from what is traditionally a very lucrative business.

CurrencyFair steps up to the plate as a white knight, offering its customers an inexpensive way to send money overseas; for both individuals and businesses. There is nothing fancy about their methodology; they get their customers the best exchange rates possible. It’s as simple as that.

While I make it no secret that I’m a big fan of services like TransferWise, in this review I take CurrencyFair for a test drive to see what it’s all about.

CurrencyFair, an excellent TransferWise alternative

CurrencyFair has actually been around for quite a while now, established in 2009 by three entrepreneurial Australians living in Ireland; Brett Meyers, Sean Barrett and Jonathan Potter.

Since its modest beginning, CurrencyFair has grown from its headquarters in Dublin to now include offices in the United Kingdom and Australia; employing 75 people across all areas of the company’s operations.

Each of the founders has experience working in finance. And as expats have a first-hand account of how expensive transferring money overseas can be. Eventually, they sat down and decided they could do it better if they put their minds to it, and CurrencyFair was born.

Over the past five or so years, they’ve had a lot of success. CurrencyFair has raised over $15 million of venture capital and has won multiple awards including the Best of Show at the FinovateAsia conference in Singapore, as well as the award for Most Insightful and Intriguing Internet Innovation at the IIA Die IE Visionary Awards.

CurrencyFair has also received a lot of support from its home base in Ireland, with assistance provided early on by Enterprise Ireland. The service itself even received personal praise from the Prime Minster of Ireland, An Taoiseach Edna Kenny TD.

How does it work?

CurrencyFair works through the newest phenomenon in currency exchange services; peer-to-peer transfers. Peer-to-peer services allow people to trade currency directly with each other, instead of making these transfers through a bank.

What CurrencyFair provides is a match-making service, pairing people together who are moving currencies in opposite directions. Think of it like this. While someone is moving money from India to the UK, there is probably someone else someone moving money from the UK from India. CurrencyFair gets the two to fulfil each other’s needs.

CurrencyFair takes a bit more of a sophisticated approach than TransferWise. It offers its customers a real-time marketplace in which to place bids to buy and sell currencies at user-defined prices. This puts the ball in the customer’s court, allowing them to set the specific price that they are happy to proceed with a transaction.

Instead of these parties having to each individually exchange money with the bank, CurrencyFair pairs them together. Funnily enough, in this respect, CurrencyFair describe themselves as ‘an online dating bureau for people who want to swap money but avoid hefty fees’.

And you know what? It works! CurrencyFair has processed over €2.3 billion in foreign exchange transactions to date. Saving its customers something in the vicinity of €130 million, that would have otherwise been spent on bank fees.

How do they do this? By charging super low fees. Compared with the bank which charges approximately 5%, CurrencyFair only charges 0.45% of the amount transferred and 3 Euro fee for their QuickTrade service. If you’d like to enter their MarketPlace and wait for a suitable counter-party, this rate is lowered to 0.15%. Now that’s a bargain!

An exciting and productive service

CurrencyFair offers its customers a service which has many benefits, which is great news for people like myself sending money home from abroad. Here are a few things which I think CurrencyFair do well:

Safe and secure

CurrencyFair is highly regulated, and as a leader of the fintech space, they take online security very seriously. In addition to being regulated in both Ireland and Australia, CurrencyFair offers its customers the highest level of website security, with two-factor payment authentication and all information stored in a secure data centre, complete with biometric systems.

Great customer service

CurrencyFair operates a transparent customer service model. In fact, if you’re ever confused by the exchange process, they encourage you to pick up the phone and give them a call. Because they have offices in both the northern and southern hemispheres, you can get a hold of them practically any time of day, most days of the week, including Sundays

Marketplace

CurrencyFair offers its customers a slightly more complex method of obtaining their desired exchange rate than that offered by services like TransferWise. In addition to the standard QuickTrade service, which CurrencyFair performs on behalf its customers, a MarketPlace exists for people who want to get the very best rate available.

By using the CurrencyFair MarketPlace users can wait until another account holder provides them with a “better requested” rate, allowing them to take advantage of an exchange rate that this more competitive than is offered by the QuickTrade service. Some people have even reported that they were able to get a better rate than the LIBOR mid-market rate!

Fast and simple

The best thing about CurrencyFair is that it’s fast and simple. Once your funds have been sent directly to CurrencyFair, and your destination account has been specified, the complete process only takes a couple of days. If you wish to obtain the best possible rate by using the MarketPlace it might take slightly longer, but is still a very efficient process.

The downsides

As with most things in life, you need to take the good with the bad. Here are a few things that you should know about TransferWise’s service before getting started:

Your money is held by CurrencyFair

Unlike services like TransferWise, who only hold your money for a short amount of time, CurrencyFair allocates its customers their own account of sorts. Your money must be transferred into your CurrencyFair account before it can be exchanged out into your currency of choice. Having money sitting in CurrencyFair’s system means that it’s not generating interest like it would in a traditional bank account.

No service for USA residents

Despite CurrencyFair permitting its customers to send money from over 30 countries, the United States, unfortunately, is not one of them. At this stage CurrencyFair does not have the licences required to receive money from people located in the U.S. While sending money to the USA is absolutely fine, You may like to read my TransferWise review.

No physical storefronts

For those new to online exchange services, you may be disappointed to hear there is no physical storefront like you’d find at your local bank branch or Western Union. Instead, all transactions are completed 100% online. This means that if you need help, you’re going to have to call them. Also, this means that you can’t actually exchange cash, you need to deposit funds into a foreign bank account, either owned by you or a third party.

Is CurrencyFair safe to use?

Is CurrencyFair safe? A very important question that you’d be silly not to ask. You’ll be happy to hear the answer is yes. CurrencyFair has been operating successfully since 2009 and has amassed a dynamic and growing customer base. As their customer base grows, CurrencyFair users have access to an increasing pot of users money, providing liquidity which ensures that currency exchange orders can be fulfilled.

Holding a lot of customer’s money means that it’s in CurrencyFair’s best interest to keep everyone’s money safe. Security is essential to their reputation and ongoing business success, so they certainly don’t to mess around. To ensure that they maintain a safe and efficient service, CurrencyFair maintains competency in a few key areas:

Regulatory oversight

As CurrencyFair is predominantly based in Ireland, it is registered with the regulated as an Authorised Payment Institution by the Central Bank of Ireland, under the European Communities (Payment Services) Regulations 2009. Additionally, as CurrencyFair operates in Australia it is subject to Australia’s tight financial regulatory system enforced by the Australian Securities and Investments Commission (ASIC). CurrencyFair and their partner companies are also registered in each jurisdiction of their company’s operations.

Segregated customer accounts

To maintain financial integrity CurrencyFair keeps its customer’s money separate from their own operating accounts. Customer funds are held in trust by one of the world’s largest financial institutions, which itself has over 57 million customers worldwide and annual revenues of $90 billion. By doing this, the funds used to run their business are independent of monies received by customers for trading between currencies, which are kept in special trust accounts.

Website security

Because CurrencyFair is 100% internet based, website security is of utmost importance, especially when dealing with potentially large financial transactions. You don’t need to worry, as with CurrencyFair’s website, your personal information is protected with the highest level of security; 256-bit encryption via SSL from VeriSign!

Secure data

The personal information of customers is stored within a secure facility that this safeguarded 24 hours a day. CurrencyFair services are protected with biometric security. Additionally, CurrencyFair uses a range of systematic procedure, checks, and maintains continuous auditing, logging, backups and safeguarding of data; including securing their software and systems from malicious attacks.

Does CurrencyFair offer good value for money? A comparison

To see how CurrencyFair stacks up against the competition, let’s compare it with exchanging money through the bank. Say I’d like to exchange 2,500 Euros (EUR) into Australian Dollars (AUD), and that the current market rate is 1.56. That means each one of my Euros is technically worth $1.56 Australian Dollars. In theory, all things being perfect (which of course they are not), my EUR 2,500 is worth approximately AUD 3,901.10.

The bank review

Because I live in Germany, I jump into the online system of my bank (Sparkasse) and set up a transfer request of EUR 2,500 into Australian Dollars. I place my Australian bank details into the required fields and hit enter. A few days later AUD 3,747.00 arrives into my Australian bank account, at an actual exchange rate of 1.5097. Upon review of the fees, it appears that I have been charged EUR  – comprising of a transaction fee of EUR 15 and commission of EUR 139.10 (approximately 5.56% of the transfer value).

CurrencyFair review

Now for today’s special guest, CurrencyFair. I deposit EUR 2,500 into my CurrencyFair account and go through the QuickTrade process. As soon as the trade is completed my Euros have now been exchanged to AUD 3,897.35 and sit on my account, waiting to be transferred to my Australian bank. Two days later my funds hit my home account, at an actual exchange rate of 1.5608. CurrencyFair advise me that they have changed a fee of AUD 4 and that’s it!

And the winner is…

CurrencyFair by a country mile! With their small fee and no additional deductions for commission/exchange rate spread, CurrencyFair put me ahead by an additional $150.35 (or 4.02%), compared to the service provided by the bank. After numerous trials, I’ve found that this trend also holds true for much smaller and larger amounts, as well as other popular currency combinations.

Sure, and other online exchanges?

So far I’ve demonstrated that CurrencyFair produces a far better result than using the bank. But how does it compare with other online currency services? Below I’ve listed today’s CurrencyFair QuickTrade exchange rate alongside some of the internet’s most popular alternatives. You be the judge.

In my experience, CurrencyFair is the most competitive service for amounts over EUR 1,000. For values smaller than that, I suggest taking a look at TransferWise.

Ready to get started? A step-by-step guide

If you’re ready to send money abroad and you think that CurrencyFair is right for you, that’s great to hear, you won’t be disappointed! CurrencyFair has developed their service in a simple and easy manner, allowing just about anyone to use their interface. Below, I’ll show you how to get started in 4 simple steps:

1. Sign up

Go to currencyfair.com and sign up for an account. It only takes 5 minutes or so, and you can get started straight away. If you would like to send amounts greater than EUR 1,000 you may need to verify your identity with a driver’s licence or passport.

2. Deposit

Login to your CurrencyFair account and add the bank account that you will be sending money from, and advise CurrencyFair of the amount. Then jump into your online banking and wire the promised funds to CurrencyFair.

3. Exchange

Once your funds arrive into your CurrencyFair account, they will notify you by email that the funds have been received. Once this occurs everything is set for you to make an exchange into a different currency by using either the QuickTrade or MarketPlace service.

4. Transfer

When you have exchanged your funds, you can add the bank details of the account you wish to send the money to. CurrencyFair will withdraw your funds from your account with them, and send the money to the specified recipient.

CurrencyFair on your mobile phone and tablet

CurrencyFair understands that not everyone has time to jump onto the computer every time they need to transfer money. As as result, they have developed a mobile friendly interface for mobile phones and tablets.

The mobile site is thoughtfully designed, with a simple and functional interface, making it perfect for payments on the run. It will work wherever you have access to the internet, either through Wifi or 3G. It supports payments by bank transfer and debit card, and displays every detail you need to keep track of its process. During any payment, you can also monitor its status and if needed, cancel it.

Within the CurrencyFair mobile site, you can still complete many of the tasks offered by its desktop counterpart, such as:

• Invite friends to CurrencyFair by SMS, email, Facebook & Twitter
• Send-in and verify identification documents
• Set up fixed target amount payments to your recipient
• Set up transfers with new and previously used recipients

Refer friends and EARN money!

If you’ve had a good experience with CurrencyFair, you can tell your friends about it and get paid in the process. CurrencyFair has joined the crowd in providing referral programs to its loyal customers, providing each person with their own unique affiliate link. For every friend you refer you’ll be paid EUR 15 – provided that they transfer over EUR 400 in any single transaction.

The best bit is that it’s not only you who will benefit. Any friend referred to CurrencyFair by you will get EUR 15 too, as well their first transfer free of charge. Everyone’s a winner!

Final thoughts

I hope this review has provided you with an insight into the CurrencyFair operation and its many benefits. If you’d like more opinions on the quality of service, be sure to check out their 780+ positive reviews over at Trustpilot.co.uk, where it has an average score of 9.5 out of 10. That’s a lot of happy customers if you ask me!

As for me, I’ll continue to use TransferWise for my smaller transfers home. While CurrencyFair looks like a no-brainer for transactions over EUR 1,000. It certainly makes my life a lot easier knowing that I’m getting an honest and competitive deal.

Four stars.

Over to you

Have you used CurrencyFair? How was your experience compared to using other services? Let us know your thoughts in the comments below, we’d love to hear what you have to say.

Currencies:

30

Transfer speed:

3 – 5 days

Trustpilot score:

3 stars

Our score:

3 stars

Website:

paysera.com

Paysera is the Eastern Europen answer to borderless accounts. Despite its potential, however, there are cheaper services out there.

Paysera has been around since the beginning of online payments but didn’t properly establish themselves as a major player until a few years ago. After a handful of name reiterations and the development of their online platform, they’re now ready to compete.

Their mission is ambitious: to create a world where electronic payments have no boundaries. But the service knows that a big part of making it a reality is getting the simple things done right. As a result, Paysera claims to offer a fast and accessible money transfer service at reasonable prices.

So does Paysera stack up to the quality of its competition? To learn more about their capability and to see if their service is right for you, read on for my in-depth review of Paysera.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

Paysera was established in 2004 under a temporary working name, Elektroniniai Verslo Projektai, by three Lithuanian founders, Kostas Noreika, Audrius Lučiūna and Šarūnas Brog. Despite starting out in this venture on their own, by 2013 the company had grown to over 50 employees under the second iteration of its name, EVP International. It wasn’t until 2014, that the service took its final and most well-known name, Paysera.

Since then, the service has grown to encompass well over 100 employees, as it has continued developing its proprietary technology, including an online platform and mobile app. The service has also been recognised by a range of established banking institutions, such as the SEPA instant payment system, and its product now incorporates the issuance of IBAN numbers and debit cards. The service itself, now claims to complete €3.6 billion worth of transfers annually.

Since 2015, Paysera’s daily operations have been manged by Vytenis Morkūnas as CEO. He is joined by a board of directors that consist of the three original founders as well as Rolandas Razma. On the executive team, Rūta Šeštokaitė is Head of Marketing and Sarunas Krivickas who plays the important role of Chief Information Security Officer. Martynas Dabulisa has been also been with the service for some time and is now Head of Sales (Business).

2. Supported currencies

Paysera supports the transfer of 30 currencies, leading to a total servicing of approximately 180 countries. For the most part, the company facilitates its transfers using the SWIFT banking network, which provides it with the ability to deliver funds to a selection of key destinations. The downside to this network is there are often charges incurred by the recipient, of which Paysera has little control of.

Paysera does not have a minimum transfer value. While the company is equipped to complete transfers of almost any size, its online platform may impose limits on specific users. Depending on the setting applied to your account there may be an aggregate limit applying to the maximum amount which can be transferred each day, month or year. These limits can be lifted by performing additional identity verification procedures.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like Paysera typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate), and the exchange rate offered to the customer.

When comparing the pricing of Paysera against traditional banks, the company fares slightly better. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. Paysera, on the other hand, charges a fee of up €7 and offers exchange rates that are marginally better than traditional banks; averaging between 5.41% of the total amount transferred for small values (£1,000), and 3.24% for larger values (£100,000).

When comparing Paysera to other specialised currency transfer services, it looks less impressive. While companies such as TransferWise (review) and CurrencyFair (review) don’t take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value.

As an example, let’s compare Paysera against its competitors when transferring British Pounds (GBP) into Australian Dollars (AUD):

As you can see, there is certainly some benefit to using Paysera. With its ability to provide flexible payment arrangements throughout Europe and other select markets, it does provide some value. Importantly, though, it should be noted that any transfer conducted via SWIFT may incur hidden charges by correspondent banks; the amount depending on the recipient’s bank.

4. Transfer speed

The transfer speed of an average transfer with Paysera depends on a couple of things, including the currency you’re sending, the bank used, and the size of the transaction. For the majority of currency pairings, you should allow between 3 – 5 days for the transferred funds to reach the recipient’s account, not including the time required to transfer your funds to Paysera’s local account.

5. Key features

What are the key features of Paysera’s online platform? Let’s take a look at the various payment services offered by the company.

Spot contract. A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the Paysera website or app, and with a couple of clicks, a transfer can be arranged.

Recurring payment. If you need to transfer funds on a regular basis, a single payment can be scheduled as a regular recurring transaction. This allows any future payments to be debited automatically, providing a convenient solution to make better use of your time.

Multi-currency account. Making and receiving payments in various currency denominations? A multi-currency account is very useful for individuals and businesses who need to accept payments from all over the world. It is a virtual alternative to having a foreign bank account.

6. Customer service

Paysera’s headquarters in Lithuania is used as the base in which to service its clients in Lithuanian, Latvian, Russian and English. The service also has an office in Bulgaria, which provides assistance in Bulgarian, Polish, English and Spanish. Their customer assistance team can be contacted by phone or email.

+44 20 8099 6963 (UK)
support@paysera.com

In my experience, I found the Paysera customer service staff to be friendly and helpful. I did not have to wait too long to speak with someone on the phone, and my queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is Paysera safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

Government regulated. As Paysera is headquartered in Lithuania, the company is a licensed e-money institution with the right to execute the activity related to the issuance of e-money and provision of payment services all around the European Union. This licence is issued by was issued by the Bank of Lithuania.

Customer funds held on trust. In accordance with the standards imposed by government regulators, the funds of Paysera’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should Paysera encounter financial difficulties.

Website security. The Paysera website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

8. Reputation

Can you trust Paysera? Let’s take a look at look at some of the key factors which affect the company’s reputation.

Trustpilot. As of publication, Paysera has received 156 reviews on Trustpilot with an average rating of 3 out of 5 stars; representing a positive experience in 91 percent of interactions with its customers.

Here are some of my observations on the feedback posted:

Social media. Upon viewing the Facebook and Twitter feeds of Paysera, we can see that there aren’t all that many queries raised on these platforms, however, when they are they are quickly answered. The remainder of Paysera’s posts revolves around marketing many of the service’s features and providing general interest news.

Dear Andrejs,
thank you for you interest! At the moment we are working on partnering with E-lats, which would offer around 40 locations around Latvia. However, it is a process that takes time. But we do expect to have more partners in Latvia in the future. 🌍

— Paysera (@paysera) January 10, 2019

Mainstream media. As for the mainstream media, their reporting on Paysera in the English language has been quite minimal. However, there is quite a bit of positive coverage in various Lithuanian publications, a list of which is available on Paysera’s website. To read it you might need to use some translation software, though.

Paysera increased authorized capital and prepares to become a bank. 15.min.lt

Paysera will not grat holidays to money transfers. Kreditai.info

Deep into the woods of banking: Paysera issues a payment card. Verslo žinios

9. User experience

Design. The Paysera website has been designed thoughtfully, with special attention being paid to user experience and simplicity. It is available in 8 languages; English, Bulgarian, German, Latvian, Lithuanian, Polish, Russian, and Spanish. In addition to its online platform, Paysera has also developed mobile apps for both Apple and Android devices.

Registration. The registration process is relatively straight-forward. You begin by entering your email, a password, and selecting the type of account that you would like, before providing essential contact information such as your name and phone number. The entire process takes around 5 minutes.

Identification. Before you are able to commence transferring funds, you first need to provide proof of identification so Paysera can verify your account. A photographic ID is required, such as a passport or drivers licence. This will permit you to transfer up to €6,990 per month in the aggregate. If you would like to remove the limitation on transfers, either single or aggregate payments,  you’ll need to complete an account verification by Skype call.

How does Paysera work?

To familiarise you with the Paysera service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along below.

Step 1. Visit paysera.com and log in. Once you have entered the Paysera website, you are greeted with a dashboard. To begin a transfer, you’ll first need to register a balance by clicking Add Funds.

Step 2. To make a deposit into your account, choose the country you’ll be sending funds from. After advising how much you’d like to deposit, you’ll be provided with the details of Pasyera’s local bank account so you can transfer funds to them.

Step 3. After making a deposit, your new balance will be registered on your Paysera dashboard within a day or two. You can use these funds to make a payment to your recipient by clicking Transfer To a Bank.

Step 4. Now that we’re ready to transfer, we first need to exchange our original currency into our desired currency. In my example, I will exchange EUR into AUD.

Step 5. A summary of the quoted exchange is provided for your review. Once you are sure you want to proceed with the transaction, click Confirm.

Step 6. Add the information of your intended recipient, including their bank details, and then confirm the transaction. Your funds are now on their way to their final destination.

Step 7. After confirming the transfer, you’ll be taken to a summary of your most recent transactions. Here you can see the specific details of each transfer, including the date, the amount, and the fee charged by Paysera.

Step 8. As your funds are sent to your recipient, you can track your transfer online.

All done! Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly.

In my experience, the Paysera online platform was simple to use and I was satisfied with the updates provided to me along the way. The entire process took 4 business days, and the funds arrived into my recipient’s account, albeit with a short payment of $8.97. Upon querying this discrepancy with their customer service team, I was advised that as my transfer was conducted through the SWIFT network, there were fees charged by correspondent banks in this system.

10. Conclusion and final thoughts

Paysera aims to be the alternative method of banking for those conducting transactions across borders. While it is certainly suitable for use by individuals, the core of its product is targeted at entrepreneur and business users. It combines some interesting and useful features, combining a multi-currency account approach with money transfer services and a debit card. There is no doubt that its services will be well received by many, particularly in Eastern Europe.

However, for all its promise, the service does have some obvious downsides. Its pricing structure for business is probably more complicated than it needs to be, and their exchange rates some distance away from other competitors in this space. If you’re looking to optimise the value obtained from international transfers, you’ll be much better served by taking a look at CurrencyFair or TransferWise. If a multi-currency account is really what you’re after, WorldFirst or OFX is probably the way to go.

Our rating: 3 stars

Currencies:

95

Transfer speed:

1 – 3 days

Trustpilot score:

5 stars

Our score:

4 stars

Website:

xoom.com

Xoom offers a simple and effective money transfer experience, despite being limited to those residing in USA and Canada.

Xoom has been around for quite some time. Sharing much of its DNA with the parent company that now owns it, the service is relied on by many for quick and painless international remittances.

With a well designed online experience and complementing mobile apps, Xoom has a wealth of resouces to drive new customers to their product and present them with a memorable experience.

But do they deliver on their promise to make international money transfer a breeze? To learn more about their capability and to see if their service is right for you, read on for my in-depth review of Xoom.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

Xoom was founded in 2001 by Kevin Hartz as a way for immigrants to send money abroad. Using its close ties with PayPay (the two companies shared common investors at the time), Xoom was able to its grow its business by being better, cheaper and faster than its competitors. Operating from their office in San Francisco, the service was completing almost $2 billion worth of payments by the end of 2011.

After relying solely on venture capital for many years, Xoom was listed as a publicly traded company in 2013. Then in 2015, after only two years of being traded on the NASDAQ, Xoom was acquired by PayPal for $1.09 billion. This bought Xoom into line with  handle international remittances of behalf PayPal’s customers, while the PayPal service itself is more adequately reserved for domestic payments.

Xoom’s operations have been overseen for many years by John Kunze, who is Vice President of Global Consumer Products. Jasmine Lee is Chief Financial Officer, and Julian King is General Manager. Brent Williams is VP of Payments, who works alongside Bobby Aitkenhead as VP of Bill Pay, and Michel Kattan as Marketing Director. Since Xoom was acquired by PayPal in 2015, the division has, of course, been supported by the group’s CEO, Dan Schulman.

2. Supported currencies

Xoom supports the transfer of 95 currencies, leading to a total servicing of approximately 130 countries. For the most part, the company facilitates its transfers using the SWIFT banking network, which provides it with the ability to deliver funds to many corners of the globe. The downside to this network is there are often charges incurred by the recipient, of which Xoom has little control of.

Xoom does not have a minimum transfer value, but maximum values will vary; the amount of which depending on the destination country and the method of transfer. Single transfers are limited to a maximum of US$ 10,000, and additional restrictions are placed on aggregate transfers over a period of time, such as limits of US$ 25,000 in 24 hours, US$ 50,000 in 30 days and US$100,000 in 180 days.

Sending limits are calculated base on several factors, such as your transaction history, how the funds are to be received, and restrictions depending on delivery country. And finally, in addition to bank transfer, Xoom supports cash pick up to selected destiantions around the world.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like Xoom typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate), and the exchange rate offered to the customer.

When comparing the pricing of Xoom against traditional banks, the company fares very well. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. Xoom, on the other hand, charges a small flat fee of only US$ 4.99. The exchange rates are also much more competitive than traditional banks; averaging between 2.49% of the total amount transferred for small values ($200), and 0.91% for larger values (US$ 10,000).

When comparing Xoom to other specialised currency transfer services, it stacks up pretty well. While companies such as TransferWise (review) and CurrencyFair (review) don’t take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value for TransferWise, and even less for CurrencyFair. Even though Xoom doesn’t provide the mid-market rate, its rates are not too far away.

As a case study, let’s compare Xoom against its competitors when transferring US Dollars (USD) into Australian Dollars (AUD):

As you can see, there is certainly some benefit to using Xoom. With its ability to provide flexible payment arrangements into hundreds of countries, it does provide reasonable value, but may not always be suitable for large amounts.

4. Transfer speed

The speed of Xoom’s services vary greatly depending on the method of delivery selected. Transfers initiated via cash pick up are completed almost instantly, while bank transfers usually take between 1 – 3 business days to be fulfilled. Whichever  method you choose, paying for your transfer with debit or credit card will ensure the quickest route possible.

5. Key features

What are the key features of Xoom’s online platform? Let’s take a look at the various payment services offered by the company.

Spot contract. A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the Xoom website or app, and with a couple of clicks, a transfer can be arranged. Unfortunately, at this stage, this is the only type of payment that Xoom can facilitate. As a result, anything resembling the more advanced features offered by other currency transfer services, such as scheduled payments or conditional orders, are not possible.

6. Customer service

In addition to Xoom’s headquarters in the United States, the company also has regional office in Guatemala. This office is used to provide assistance to its Latin American clientele. Their customer assistance team can be contacted by phone or email.

+1 877 815 1531
customersatisfaction@xoom.com

In my experience, I found the Xoom customer service staff to be friendly and helpful. I did not have to wait too long to speak with someone on the phone, and my queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is Xoom safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

Government regulated. As Transfast is headquartered in the United States, the company is regulated by FinCEN. In addition to this broad sweeping regulation, the service claims to hold financial services licenses in over 70 jurisdictions.

Customer funds held on trust. In accordance with the standards imposed by government regulators, the funds of Xoom’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should Xoom encounter financial difficulties.

Website security. The Xoom website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

8. Reputation

Can you trust Xoom? Let’s take a look at look at some of the key factors which affect the company’s reputation.

Trustpilot. As of publication, Xoom has received 7,330 reviews on Trustpilot with an average rating of 5 out of 5 stars; representing a positive experience in 88 percent of interactions with its customers

Here are some of my observations on the feedback posted:

Social media. Upon viewing the Facebook and Twitter feeds of Xoom, we can see that its employees reply promptly to queries raised on these platforms. Most interactions are quickly moved offline, where any query can be delt with discreetly. The remainder of Xoom’s posts revolve around reminding thier customers of the benefits of using the service.

We’re sorry to hear that. Please DM us your Xoom email so we can assist you.

— Xoom.com (@Xoom) December 14, 2018

Mainstream media. As for the mainstream media, their reporting on Xoom has generally been positive. Much of the their coverage surrounds the company’s recent expansion into Canada, as well as a new marketing campaign involving Usain Bolt.

Usain Bolt named global brand ambassador for money transfer service Xoom. The Drum

Xoom Expands Full Suite Of Send Services To Canada. PYMNTS.com

9. User experience

Design. The Xoom website has been designed thoughtfully, with special attention being paid to user experience and simplicity. It is available in 6 languages; English, Chinese, French, Portuguese, Spanish, and Vietnamese. In addition to its online platform, Xoom has also developed mobile apps for both Apple and Android devices.

Registration. The registration process is very quick. All you need to do is enter your name, email address and couple of identifying details. Alternatively, you can sign up with your PayPal account. The entire process takes a minute or two.

Identification. No identification is required to make initial transfers up to $2,999. If you’d like to send amounts up to $10,000 in any one 24 hour period, you’ll need to provide additional details such as a social security number or passport. To increase this amount to $25,000, you’ll need to answer a range of security questions and provide proof of funds, such as a pay slip or bank statement.

How does Xoom work?

To familiarise you with the Xoom service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along.

Step 1. Visit xoom.com and log in. Once you have entered the Xoom website, you are greeted with a relatively minimal interface. To begin a transaction and add your first recipient, click Get Started.

Step 2. Decide if you would like the funds to be delivered to your recipient by bank deposit or cash pickup.

Step 3. Select the method in which you would like to pay for the transfer. There are three options available; bank transfer, debit or credit card.

Step 4. If you are sending money to a bank account, now is the time to enter the receipent’s bank details. If, instead, you decided to deliver to a cash pickup location, you’ll be prompted to select from a prepopulated list of options.

Step 5. Add the specific details of your receipient, including their name and address.

Step 6. Next, it’s time to add your own contact information.

Step 6. Now is the time to organise payment. If you elected to pay by debit or credit card, this is the fastest method of transferring funds to Xoom. Otherwise, bank transfer will do just fine.

Step 6. A summary of the quoted transaction is provided for your review. Once you are sure you want to confirm and proceed with the transaction, click Authorize Payment.

Step 8. Once your transaction is confirmed, it is time for Xoom to get to work and begin processing your payment. You can track your transfer online or with their mobile app. Additionally, throughout the process, you will be provided with email updates as the payment moves within the system.

All done! Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly. In my experience, the Xoom online platform was simple to use and clear instructions were provided. Unfortunately, I was not able to complete a full test of the service, as I do not have a presence in the United States.

10. Conclusion and final thoughts

Xoom’s money transfer service is leveraged using the size and scale of its owner, PayPal. As a result, they are able to offer an simple and efficient platform for cross-border payments. Although I wasn’t able to personally test the service with a transaction at my own, it seem that their service works relatively well. At least the ability to make a low-value transaction without providing identification is incredibly convenient.

Whilst it’s use is limited to residents of the United States and Canada, Xoom does a pretty good job for those needing to move money quickly. Admittedly, it’s fees aren’t quite as low as a service like TransferWise, but it does punch well above many of its remittance peers, such as Transfast and Remitly. So all in all, if you are looking for an easy to use money transfer service that won’t break the bank, Xoom is not a bad option at all.

Our rating: 4 stars

Currencies:

20

Transfer speed:

1 – 3 days

Trustpilot score:

1 star

Our score:

1 star

Website:

skrill.com

Skrill is tied closely to the gambling and cryptocurrency industries. It is expensive and offers poor customer support. Avoid.

Skrill has been around for much longer than most online money transfer services. Born at the peak of the tech boom in the early 2000’s, its business model has changed over time as it has adapted to the needs of its customers, and also macro level trends of the industry as a whole.

Beginning with low value, cross-border remittances, the company is innovative in non-traditional sectors. In recent times, this has seen Skrill focus heavily on servicing the users of complementary online platforms, and in particular, that of the online gambling industry.

Skrill attempts to be many things to many people, but do they any of these very well? To learn more about their capability and to see if their service is right for you, read on for my in-depth review of Skrill.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

Skrill was founded in 2001 by Daniel Klein and Benjamin Kullmann, as an internet focused payment service. Originally called Moneybookers, the company was established during the race to develop the first digital wallet; a race that was eventually won by PayPal. Their growth in recent times is largely as a result of intergrations with platforms such as Facebook, Skype and eBay, as well as an increasing focus on online gambling.

The ownership of Skrill has changed a few times over the years. In 2007 the company was purchased by Investcorp Technology Partners. Then, in 2015 Skrill was acquired by what would become to be known as the Paysafe Group for €1.2 billion. The group briefly listed on the London Stock Exchange before eventually being sold to a consortium of private equity investors in 2017.

Skrill is currently led by Lorenzo Pellegrino, who is supported by Paysafe Group CEO, Joel Leonoff. The Paysafe Group itself is luckly enough to have a wealth of experience, including Danny Chazonoff as Chief Operating Officer, Elliott Wiseman as Chief Compliance Officer, and  John Arnold as Chief Technology Officer. More specific to the Skrill side of the busines, Fayyaz Ansari is CFO of Digital Wallets.

2. Supported currencies

Skrill supports the transfer of 20 currencies, leading to a total servicing of approximately 230 countries. For the most part, the company facilitates its transfers using the SWIFT banking network, which provides it with the ability to deliver funds to all corners of the globe. The downside to this network is there are often charges incurred by the recipient, of which Skrill has no control of. Skrill does not have a minimum transfer value, and the maximum transfer value is limited to £2,500.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like Skrill typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the mid-market rate, and the exchange rate offered to the customer.

When comparing the pricing of Skrill against traditional banks, the company fares pretty well. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. Skrill, on the other hand, does not charge a transaction fee, and the exchange rates are much more competitive than traditional banks; averaging between 0.02% of the total amount transferred GBP/EUR payments.

When comparing Skrill to other specialised currency transfer services, it holds up relatively well, except for the severe limitations on its payment destination countries. As an alternative, many will find the services such as TransferWise (review) and CurrencyFair (review) to be much more versiatile. Nevertheless, let’s compare Skrill against its competitors when transferring British Pounds (GBP) into Euro (EUR):

As you can see, there are certainly many benefits to using Skril, but in the whole, it really is lacking many features that you’d expect in the money transer platform. In addition, it should be noted that any transfer conducted via SWIFT can incur hidden charges by correspondent banks; the exact cost depending on location of the recipient’s bank.

4. Transfer speed

The transfer speed of an average transfer with Skrill depends on a couple of things, including the currency you’re sending, the size of the transaction, and the banks involved. For the majority of currency pairings, you should allow between 1 – 3 days for the transferred funds to reach the recipient’s account.

5. Key features

What are the key features of Skrill’s online platform? Let’s take a look at the various payment services offered by the company.

Spot contract. A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the Skrill website, and with a couple of clicks, a transfer can be arranged. Unfortunately, at this stage, this is the only type of payment that Skrill can facilitate. As a result, anything resembling the more advanced features offered by other currency transfer services, such as scheduled payments or conditional orders, are not possible.

6. Customer service

In addition to the Skrill’s headquarters in the United Kingdom, the company also has an office in the United States. Skrill’s customer service can be contacted by phone, email, or through the use of a form on their website.

+44 20 33082519 (UK)
help@skrill.com

In my experience, I found the Skrill customer service staff to be friendly and helpful. My queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is Skrill safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

Government regulated. As Skrill is headquartered in the United Kingdom, the company is regulated by the Financial Conduct Authority (FCA) and licensed as an Electronic Money Institution under reference 900001. Skrill is registered with the relevant state authorities in the United States, and is also regulated by FinCEN.

Customer funds held on trust. In accordance with the standards imposed by government regulators, the funds of Skrill’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should Skrill encounter financial difficulties.

Website security. The Skrill website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser. Additionally, Skrill has implemented a range of security features such as two factor authentication.

8. Reputation

Can you trust Skrill? Let’s take a look at look at the company’s reputation.

Trustpilot. As of publication, Skrill has received 1,185 reviews on Trustpilot with an average rating of 1 out of 5 stars; representing a positive experience in only 22 percent of interactions with its customers.

Here are some of my observations on the feedback posted:

Positive

• Useful for countries not supported other services
• An alternative to PayPal

Negative

• Poor customer support
• High fees
• Long verification process

Social media. Upon viewing the Facebook and Twitter feeds of Skrill, we can see a range of varied interactions between the company’s customer service staff and its customers.

Thank you for choosing Skrill! Please submit your inquiry via our Support page (https://t.co/Zct0s3EabM), so we can locate your account and give you a detailed and tailored answer. ^AM

— Skrill (@skrill) November 28, 2018

Mainstream media. As for the mainstream media, their reporting on Skrill has generally been positive, and provides the company with a handful of vanity pieces, many of which highlighting the advantage of money transfer companies over traditional banking services.

Tills ring for online payment service. The Sunday Times

Online pay pioneer in £600m sale. The Sunday Times

9. User experience

Design. The Skrill website has been designed thoughtfully, with special attention being paid to user experience and functionality. It is available to be viewed in 12 languages, including English, Chinese, Czech, French, German, Greek, Italian, Polish, Romanian, Russion, Spainish, and Turkish.

Registration. The sign-up process is very quick. All you need to do is enter an email address and password. The entire process takes a minute or so.

Identification. Before you are able to commence transferring funds, you first need to provide proof of identification so Skrill can verify your account. Two documents are required; one proving your identity, such as a passport or drivers licence, and one proving your address, such as a bank or utility statement.

9.2. How does Skrill work?

Step 1. Visit skrill.com and log in. Once you have entered the TransferGo website, you are greeted with a relatively minimal interface. To begin a transaction and add your first recipient, click Send.

Step 2. Decide on how you want to transfer your funds. You can either send money from your Skrill wallet to another wallet or email address. Alternatively, you can send funds in the typical way; from a bank account or credit card.

Step 3. Select the country and currency of your recipient . You will also need to select the method in which you want pay for the transfer, and how you want to funds to be deleivered to the recipient.

Step 4. You can then add the specific information of your intended recipient, including their bank details if that is the delivery method chosen.

Step 5. A summary of the quoted transaction is provided for your review. Once you are sure you want to confirm and proceed with the transaction, click Continue.

Step 6. Now is the time to organise payment. If you elected to  pay by debit or credit card, this is the fastest method of transferring funds to Skrill. Otherwise, bank transfer will do just fine.

Step 7. After your transaction is confirmed, it is time for Skrill to get to work and begin processing your payment. Once your funds have been received by Skrill, they will finalise the transfer to your recipient. You can track your transfer online or with their mobile app. Additionally, throughout the process, you will be provided with email updates as the payment moves within the system.

All done! Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly. In my experience, the Skrill online platform was simple to use and clear instructions were provided. Unfortunately, I was not able to complete a full test of the service, as I do not have a presence in any of the countries that they deliver to.

10. Conclusion and final thoughts

Skrill provides a basic service for international money transfer. Its strong links to the cryptocurrency and gambling industries make their online wallets popular in these communities. As far as Skrill’s money transfer service goes, however, it does a pretty ordinary job of moving any currencies that aren’t significant pairings. The service is clunky, expensive and has a reputation for poor customer service.

With the availabilty of high-quality alternatives such as WorldRemit and TransferGo, it is difficult to recommend using Skrill in any capacity. As far as I can tell, there is nothing that Skrill does that other services don’t do better. That being said, it does perform basic transfer via the SWIFT banking network, so can be used to the job done, if it’s your only option.

Our score: 1 star

Currencies:

127

Transfer speed:

1 – 3 days

Trustpilot score:

4 stars

Our score:

2 stars

Website:

smallworldfs.com

Summary text

Small World Financial Services will mean something different to each person that comes across its services. The company, which acts has an overarching brand of 7 separate foreign exchange businesses, has established an online platform to compliment its significant retail presence.

Since its inception in 2005, Small World has gradually expanded its footprint to employ over 500 staff across Europe and a handful of international offices. Led initially by 3 ambitious founders from London, the company has developed along with their knowledge of the industry, to now incorporate 80 branches and over 2,500 authorised agents.

Small World’s online platform aims to support its existing customer base by facilitating transfers in a simple and secure manner. To learn more about their capability and to see if their service is right for you, read on for my in-depth review of Small World Financial Services.

1. Company history and founding story
2. Supported currencies
3. Exchange rates and fees
4. Transfer speed
5. Key features
6. Customer service
7. Security and regulation
8. Reputation
9. User experience
10. Conclusion and final thoughts

1. Company history and founding story

Small World was founded in 2005 by Nick Day, Ricky Knox and Michael Kent. Each of the founders originate from a corporate consulting and venture development background. While not a lot of information is available on the company’s path to its current position, it does appear that strategic acquisitions have been a key driver of its overall growth. This raises an important point about their business model; that it is in fact a collection of brands, rather than a single entity, each with its own target market and area of operations. Here are the brands that fall within the overarching Small World banner:

• Choice Money Transfer: Canada, USA and Spain
• Express Funds: United Kingdom
• Global Link: United Kingdom
• LCC: Belgium, Germany, France, Ireland, Luxembourg, Netherlands, Portugal and United Kingdom
• Swiss Transfers: Switzerland
• Universal de Envios: Spain
• UNO: Spain and Italy

As far as I can tell, Small World’s online platform is primarily operated by LCC Trans-Sending Ltd, one of the group’s UK based entities. The founding team has seen some changes over time, with Christiano Arnhold Simoes joining the company in 2009 with the acquisition of Swiss Transfer, and also Kevin Neuschatz in 2010 with the acquisition Choice Money Transfer. While in 2012, Michael and Ricky left found a mobile-first remittance company, Azimo. If you’d like to know more about the founding story of Small World (as well as Azimo), you might like to take a look at this in-depth interview with Ricky Knox.

Small World continues to be led by one of its co-founders, Nick Day. He is joined by Gareth Heald as Chief Financial Officer, and Fatima Fernandes as Head of Compliance. Nick Page has been appointed as a non-executive director and chairman of the group, and brings to the company a great breath of financial service experienced, which includes a 7 year stint as Chief Operating Officer of Travelex. In early 2018, a majority stake of Small World was acquired by Equistone Partners for £80 million. According to reports, the company has completed over £10 billion worth of payments and 50 million transactions to date.

2. Supported currencies

Small World supports the transfer of 127 currencies, leading to a total servicing of approximately 179 countries. For the most part, the company facilitates its bank transfers using the SWIFT banking network, which provides it with the ability to deliver funds to all corners of the globe. The downside to this network is there are often charges incurred by the recipient, of which Small World has no control of. In addition to bank transfer, the company can deliver funds by a range of other methods, such as:

• Cash pick up
• Home delivery
• Mobile money
• Airtime top up

Small World does not have a minimum transfer value, but maximum values will vary; the amount of which depending on the destination country and the method of transfer. While bank deposits may be able to transact higher values, the amount which can be sent via debit or credit card is limited to approximately US$ 2,000.

3. Exchange rates and fees

Before committing to using a currency transfer service, it’s important to understand its business model. Put simply, a company like Small World typically generates revenue in two ways. Firstly, it may charge a transaction fee for executing each transfer. Secondly, it may also take a margin on the exchange rate provided to its customers, also known as the “spread”; which is the difference between the exchange rate of the wholesale market (i.e. the interbank rate), and the exchange rate offered to the customer.

When comparing the pricing of Small World against traditional banks, the company has mixed results. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. Small World, on the other hand, charges a variable fee of between 2 – 2.5% of the transfer value, and the exchange rates vary wildly depending on the destination of the funds; bringing the total cost of a transfer to between 3% of the total amount transferred for popular currency pairings (EUR/GBP), and 5.05% for pairing that are not as popular (EUR/AUD).

When comparing Small World to other specialised currency transfer services, it is a relatively poor performer. While currency services such as TransferWise (review) and CurrencyFair (review) don’t take a margin on the value of the transfer, and rather they provide their customers with the mid-market rate, they do charge a larger fee to compensate; amounting to approximately 0.50% of the transfer value. Unfortunately, these alternatives can’t always send funds to all corners of the globe by a variety of methods, which is one of Small World’s primary strengths.

For example, let’s compare Small World against its competitors when transferring Euro (EUR) into Australian Dollars (AUD):

In my example of a transfer to Australia, Small World is not so competitive. To further test their ability to provide attractive rates, I also received quotes on a couple of more popular currency pairings. Both EUR/GBP and EUR/USD pairings came in slightly more competitive than its EUR/AUD counterpart, at an average cost of 3.67% and 3.04% of the total value transferred respectively.

This is slightly better, but still easily out-competed by many other monty transfer services. So, all in all, there are some benefits to using Small World over your bank, but there may be better options out there. In addition, it should be noted that any transfer conducted via SWIFT may incur hidden charges by correspondent banks; the amount of which depending on the recipient’s bank.

4. Transfer speed

The speed of Small World’s services vary greatly depending on the method of delivery selected. Transfers initiated via cash pick up, mobile money and Airtime top up are completed almost instantly. While bank transfers usually take between 1 – 3 business days to be fulfilled.

5. Key features

What are the key features of Small World’s online platform?

Spot contract. A spot contract consists of a single payment from one currency to another at the currently available exchange rate. If you need to send money right away, simply log in to the Small World website or app, and with a couple of clicks a transfer can be arranged.

Flexible delivery. Small World’s strengths lay in its ability to transfer funds in a variety of customer friendly ways. In this spirit, the company has established relationships with many banks and cash pick up locations, providing a much-needed source of flexibility into areas of the world with limited banking infrastructure.

Large retail network. Small World has a large network of retail stores, which allow transfers to be made at a physical branch, in addition to its online platform. The company has established 80 branches across 16 countries, and has a stable of over 2,500 authorised agents to act on their behalf.

6. Customer service

In addition to the Small World headquarters in the United Kingdom, the company has a regional offices in Belgium, Canada, France, Germany, Ireland, Luxembourg, Netherlands, Portugal, Spain, Switzerland, and the United States. Each of these offices is used to varying degrees, to service the company’s customer base. Their help desk can be contacted by phone or email.

+44 20 3198 0387
online.ce@smallworldfs.com

In my experience, I found the Small World customer service staff to be friendly and ready to assist. I did not have to wait too long to speak with someone on the phone, and my queries by email have been answered in a prompt and professional manner.

7. Security and regulation

Is Small World safe? Let’s take a look at the various initiatives adopted by the company to ensure the security of its customers.

Government regulated. As Small World’s operating entity is headquartered in the United Kingdom, the company is regulated by the Financial Conduct Authority (FCA) and licensed as an Electronic Money Institution under reference 504482.

Customer funds held on trust. In accordance with the standards imposed by government regulators, the funds of Small World’s customers are held in segregated accounts and are therefore kept completely separate from the company’s own operating accounts. This ensures the security of customer funds, should Small World encounter financial difficulties.

Website security. The Small World website is protected with TLS encryption, which prevents sensitive data from being intercepted during your visit. You can confirm that this is in place by recognising a green padlock next to the website’s URL on your browser.

8. Reputation

Can you trust Small World? Let’s take a look at look at the company’s reputation.

Trustpilot. As of publication, Small World has received 4,850 reviews on Trustpilot with an average rating of 4 out of 5 stars; representing a positive experience in 78 percent of interactions with its customers.

Here are some of my observations on the feedback posted:

Positive

• Reliable service
• Better exchange rates than the bank
• Mobile app is easy to use

Negative

• Some transfers have taken longer than expected
• Communication difficulties when dealing with customer service
• Customers have suggested that service is best for transferring small amounts (<US$ 1000)

Social media. Upon viewing the Facebook and Twitter feeds of Small World, we can see an occasional interaction between the company’s customer service staff and its customers. But for the most part, these interactions are few and far between. It does appear that when Small World is engaged over these platforms, they respond within a day or two.

If I was to speculate why there is so little interaction, I would suggest that it may be due to the demographic of the company’s customer base; slightly older and probably less tech inclined. Aside from that, the company’s Twitter feed offers its followers a sporadic selection of general interest news, which is predominately curated for entertainment, rather than any useful foreign exchange purpose.

Thanks for your words @Mcklackers 🙂

— Small World (@smallworldfs) February 22, 2018

Mainstream media. As for the mainstream media, Small World does not receive a lot of coverage. Its CEO, Nick Day, is quoted from time to time discussing larger trends in the money transfer industry, but other than that, most other coverage surrounds the ownership of the company and its fund raising initiatives.

9. User experience

Design. The Small World website has been designed thoughtfully, with special attention being paid to user experience and simplicity. It is available in 8 languages; English, Dutch, French, German, Italian, Polish, Portuguese, and Spanish. In addition to its online platform, Small World has also developed mobile apps for both Apple and Android devices.

Registration. The sign-up process is relatively straight-forward. You begin by entering your name, date of birth, email and a password. Then you must enter additional personal information such as address. The entire process takes around 10 minutes.

Identification. Before you are able to commence transferring funds, you first need to provide proof of identification so Western Union can verify your account. Two documents are required; one proving your identity, such as a passport or drivers licence, and one proving your address, such as a bank or utility statement.

How does Small World Financial Services work?

To familiarise you with the Small World service, I’ll take you through a transaction I completed with them recently. If you need some guidance in navigating your own account, you can follow along below.

Step 1. Visit smallworldfs.com and log in. Once you have entered the Small World website, you are greeted with an informative interface. To begin a transaction, click Send Money Now.

Step 2. Select your intended recipient – the details of which are entered in a seperate menu.

Step 3. Enter the value of your transfer in either the sending or receiving currency denomination, and choose whether you’d like this value to include the that Small World will charge.

Step 4. An additional menu is squeezed into the process, asking for you to describe the purpose of your transaction, your relationship with the receipient and the source of the original funds.

Step 5. ABC

Step 6. A summary of the quoted transaction is provided for your review. Once you are sure you want to confirm and proceed with the transaction, click Confirm Transfer.

Step 7. If you chose to pay by debit or credit card in the previous screen, now is the time to select your payment method.

And enter the details of your card.

Step 8. Once your transaction is confirmed, it is time for Small World to get to work and begin processing your payment. Once your funds have been received by Small World, they will finalise the transfer to your recipient. You can track your transfer online or with their mobile app. Additionally, throughout the process, you will be provided with email updates as the payment moves within the system.

All done! Finally, once the transfer has been completed, its status will be updated accordingly and the payment will be reflected in your recipient’s account shortly.

10. Conclusion and final thoughts

As a basic solution for low-value remittances, Small World gets the job done. The company leverages its retail store network, developed over the past 15 years, to deliver funds to many corners of the globe. If you would like to arrange a cash pick up for a friend or family member, Small World provides a reasonable service if you reside within the UK or Europe.

Its online presence, however, is rather simplistic when compared to its newer and more technology savvy peers. Want better pricing? Take a look at TransferWise or WorldRemit. Want more features? Try OFX or WorldFirst. Use Small World if its most convenient for you. Otherwise, there might be better options out there for you.

Our rating: 2 stars