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

Currencies:

37

Transfer speed:

1 – 3 days

Trustpilot score:

3 stars

Our score:

3 stars

Website:

transfast.com

Transfast is a simple, low-value remittance platform serving residents of the United States. While it’s certainly functional, the service doesn’t stand out from the pack.

Transfast has been operating for many years in the US remittance market. Built on the back of the founder’s own experience as an immigrant, the service has gone from strength to strength in providing for the needs of those sending money back home.

Aided by a deep understanding of private equity investments, Transfast has capitalised on the opportunities within money transfer services, as other competitors have struggled to navigate a myriad of financial regulations. This has led them to increase their customer base and provide a dynamic online product.

As Transfast continues to grow, their service is making it easier to send money abroad. To learn more about their capability and to see if their service is right for you, read on for my in-depth review of Transfast.

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

Transfast was founded in 1988, as a remittance service focusing on the currency corridors between the United States and Latin America. Operating from their headquarters in New York, the company received private-equity investment in 2007 from Greenhill Capital Partners and Samish Kumar. Both saw an opportunity to inspire growth back into a business that had suffered declining revenues since new regulations were introduced in the aftermath of the 9/11 terrorist attack.

Samish, who had grown up in India and Nigeria, had personal experience with remittances. After immigrating with his family to the United States in 1984, he has spent the early days of his career studying aerospace engineering and eventually landed on Wall Street. It was his experience here, as a private equity investor, which led him to become involved with Transfast. Since 2007, Transfast has grown to process approximately $6.5 billion worth of payments each year.

Transfast continues to be led by Samish as CEO. He is assisted in managing the company by Luis Arrevillaga, who is Financial Controller, and by Komal Rathi, who is Head of eCommerce Business. Renjith Alex is Head of Operations, while Bhushan Samant looks after all things technical as Chief Technology Officer. Shreerang Vaidya is Chief Information and Technology Officer and Biren Zandani heads up business development across Asia Pacific.

2. Supported currencies

Transfast supports the transfer of 37 currencies, leading to a total servicing of approximately 52 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 Transfast has little control of.

Transffast has a minimum transfer value of $50, and its maximum transfer limit is split into a number of tiers. The first tier permits transfers of up to £500 without providing formal identification. For some countries closer to home, such as Canada, this amount is $1,000. As you continue to use Transfast the maximum amount gradually increases automatically. Then, for values larger than $10,000, you’ll need to supply the service with with additional identification and proof of funds.

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 Transfast typically generates revenue in two ways. First, it may charge a transaction fee for executing each transfer. Second, 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 Transfast against traditional banks, the company fares reasonably well. Banks typically charge a large transaction fee and a 5% margin on the total value of the transfer. Transfast, on the other hand, does not charge a transaction fee, and the exchange rates are much more competitive; amounting to 2.13% of the total amount transferred for both small ($200) and large values ($5,000).

When comparing Transfast to other money transfer services, it is not a great performer. 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. Unfortunately, these alternatives can’t always send funds to all parts of the world and by a variety of methods, which is one of Transfast’s primary strengths.

As a case study, let’s compare Transfast against its competitors when transferring US Dollars (USD) into Mexican Pesos (MXN):

As you can see, there is certainly some benefit to using Transfast. With its ability to provide flexible payment arrangements throughout Africa, Asia and Latin America, many customers will find the service useful. Importantly, though, it should be noted that any transfer conducted via SWIFT may incur hidden charges by correspondent banks; the amount depending on the amount of the transfer and the recipient country.

4. Transfer speed

For what Transfast lacks in diversity of originating countries, it makes up for with the speed of its transactions; particularly for those which paid by debit or credit card. When a payment is made via one of these methods to a cash pick up location, the funds will often be available within 15 minutes.

For bank transfers, the speed of a transaction will depend on a couple of factors, including the currency you’re sending, the size of the transaction, and the bank used. For the majority of currency pairings, you should allow between 1 – 3 business days for the transferred funds to reach the recipient’s account.

5. Key features

What are the key features of Transfast’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 current available exchange rate. If you need to send money right away, simply log in to the Transfast 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 Transfast 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.

Flexible delivery. Transfast’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 over 200,000 cash pick up locations spread across 142 countries. This network provides flexibility into areas of the world with limited banking infrastructure.

6. Customer service

In addition to the Transfast headquarters in the United States, the company also has regional offices in the Philippines and the United Arab Emirates. Each of these offices is used to varying degrees to provide customer service. Their customer assistance team can be contacted by phone or email.

+1 888 973 6383 (US)
customersupport@transfast.com

In my experience, I found the Transfast 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 Transfast 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 Transfast’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 Transfast encounter financial difficulties.

Website security. The Transfast 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 Transfast? Let’s take a look at look at some of the key factors which affect the company’s reputation.

Trustpilot. As of publication, Transfast has received 2,514 reviews on Trustpilot with an average rating of 3 out of 5 stars; representing a positive experience in 84 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 Transfast, we only see a few interactions. While the service does respond to customers, it appears that there is only an interaction every so often, such as this one in 2017.

We are very sorry to hear about his @mybookswapclub How can we help you? Please send an email to feedback@transfast.com

— TRANSFAST (@TransFastWorld) August 1, 2017

Mainstream media. As for the mainstream media, their reporting on Transfast has generally been sparse. Much of the reporting by media outlets surround the company’s plans on expansion into new markets, as well as the generation of new partnerships and acquisitions. From time to time, Transfast’s CEO, Samish Kumar, is the feature of a business success profile.

Samish Kumar – The non-resident indian who built a multi-million dollar business across 120 countries! Yahoo

9. User experience

The Transfast website has been designed thoughtfully, with special attention being paid to user experience and simplicity. It is only available in English, as far as I am aware. In addition to its online platform, Transfast has also developed mobile apps for both Apple and Android devices.

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

Identification. As highlighted earlier, no identification to make initial transfers up to US$ 1,000. And while your sending limits will begin low, they will be automatically increased as you transact longer with the company. If you’d like to send amounts larger than US$ 10,000, you’ll need to provide additional documents such as a driver’s licence or passport, social security number and proof of income. Proof of income could include a pay stub or receipts of stock or bond income.

How does Transfast work?

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

Step 1. Visit transfast.com and log in. Once you have entered the Transfast website, you are greeted with a relatively minimal interface. To begin a transaction, select a recipient country, a transfer value, and click Get Started.

Step 2. Select the country of your recipient and the currency denomination in which you intend to send funds or have the recipient receive them. You will also need to select the method in which your funds will be delivered to your recipient. In my example, only bank deposit is available, however depending on your on your own recipient country you may have other options such as cash pick up, door to door delivery, mobile money or airtime top up.

Step 3. You can then add the specific information of your intended recipient, including their bank details if that is the method you have chosen. If instead, you choose to send money to a phone number, Transfast will not take responsibility for lost funds due to any errors on your part – so make sure to double check all information before confirming your request!

Step 4. If you wish to pay by debit or credit card, this is the fastest method of transferring funds to Transfast. Other payment methods can also be selected, including Sofort. I chose to proceed with a debit card.

Once your transaction is confirmed, it is time for Transfast to get to work and begin processing your payment.

Step 5. Select the method in which you would like to pay. If you wish to pay by debit or credit card, this is the fastest method of transferring funds to Transfast. 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 Send Money.

Step 6. After your transaction is confirmed, it is time for Transfast to get to work and begin processing your payment. Once your funds have been received by Transfast, 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 Transfast 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 Transfast delivers to.

10. Conclusion and final thoughts

Transfast offers a service that is focused squarely on assisting immigrants from Africa, Asia and Latin America. While it is nice to see that their mission is tightly composed, the potential of the service is hamstrung by limited availability, i.e. the United States only. Although I wasn’t able to personally test the service with a transaction at my own, it seems as if their online platform works reasonably well. At least the ability to make a low-value transaction without providing identification is incredibly convenient.

While it is certainly a useful service, the availabilty of high-quality alternatives such as WorldRemit or TransferGo, makes it hard for Transfast to stand out from the pack. The service is not particulary cheap, and rather feels like another cookie cutter remittance service on the SWIFT network. That being said, it is at least functional, so you might find it of some use if you have simple requirements.

Our rating: 3 stars