Disclaimer: We are not recommending any specific remittance payment platforms, this is a general informational article, please consult a relevant expert before making any purchasing or other business decisions in regards to remittance.
A remit payment is when individuals transfer money to their home countries. Parties that typically send or receive remittance payments include migrant workers, expats, remote workers, charitable organizations, and retirees. Remittance services typically have lower fees than financial institutions for regular transfers. You can gain financial benefits if you consider adding remitted payment services to modify an existing digital product or launch a neobanking startup. The purpose of remittance payments is generally for supporting family or for personal expenses.
In many countries, money transfers from citizens working in places like the U.K. are a lifeline. Sending agents charge senders fees for delivery of local currency to beneficiaries in other countries. These remittance payments may finance housing, basic goods, education, and health. Thus, it’s critical for small business owners who both employ migrant workers or are migrants themselves to understand what are the platform options for remittance.
Popular Remittance Platforms
PayPal
One of the best online payment systems for small businesses is widely known. PayPal is easy to set up and use. Its fees are higher than some other platforms but many small businesses choose to use it because it is so widely accepted. It accepts payments in most currencies from more than 200 markets.
PayPal can simplify your cash flow management as a small business because you can easily keep track of transactions. It may not be the best option for remittance payments due to the fees but it is secure and accepted by many merchants. The exchange rates may also not be as good as some other platforms.
Atlantic Money
This company was recently acquired by Deel.
Launched in 2022, American expats living in London, Patrick Kavanagh and Neeraj Baid often sent money back home. These alumni of the trading platform, Robinhood, couldn’t believe they had to pay such large fees to do so. The service they created is aimed as a solution to that problem, offering international money transfers at a flat fixed fee and with the live exchange rate.
- Along with a payment gateway in the UK, it is currently available in 29 countries.
- It was launched as an iOS application but in January 2023 it also became available to Android users.
- It has built connections with world interbank exchanges so it can always offer the best exchange rates.
TransferGo
Founded in 2012, TransferGo has transferred money internationally for over 8 million customers, to and from over 160 countries. The fee varies depending on the type of transfer and the destination. It uses an online account-to-account business model. This provides a good way for businesses to pay suppliers.
Xe.com
Xe.com makes it easy to send money to over 200,000 countries without the necessity to open a bank account. Its Currency App has over 7 million downloads. Another useful tool is its Currency Converter and it accepts 100 currencies.
As business payment methods, clients can book payments through the online foreign exchange payments service. It protects money with legal compliance and policies. There are no surprise fees and money transfer is quick. Once users sign up they can get a quote by providing the currency they want to transfer, the amount, and the destination. Adding recipients requires providing a name and address.
Conclusion
The best online payment system for a small business owner in the U.K. will depend on the unique goals of the business. Considering fees, security, and ease of use is essential when making a decision. Selling to a global audience requires the ability to accept multiple currencies. Sending remittance payments globally also requires looking at factors like fees and security. Many small business owners in the U.K. find using mobile apps a convenient and quick way to make and receive payments.
