Online money transfer has become the norm for people in developed countries. Statista's data showed that 73% of people in Great Britain were using Internet banking compared with 69% in 2018 and just 30% in 2007.
Although growing, the developing world is still some way behind. Money is generally sent from economically developed countries to developing ones, Toptal states that the USA sends, and India receives, the most money annually. Those receiving money within developed countries often have less access to things such as the internet and mobile devices, which means there is a real need to maintain money transfer methods like cash pick-up that do not rely on online services.
How does cash pick-up work when you transfer money?
Cash pick-up uses agents and pick-up locations meaning that all or some of the online activity can be avoided. The important thing to note here is that the pick-up location that you can choose for your beneficiary does not necessarily have to be a bank. Depending on where in the world you send money, there will be locations across the country that could be far easier and more convenient to reach for your friends or family.
You can transfer money for cash pick-up using the Small World website or our app, by phone, or by visiting an agent yourself. See the Small World website for more details on each of these options, or read our recent article on using our money transfer app for the first time. In order to collect their money, your recipient will have to provide certain details you are given when the transaction is set up. While the exact process differs from country to country, these details — often a PIN or equivalent — mean the transaction remains secure from beginning to end.
Why choose cash pick-up when you send money?
In the countries that rely on services like cash pick-up, travelling to the nearest towns and cities to collect cash can be difficult, costly and sometimes even dangerous. Small World’s network of cash pick-up locations has been growing for years. In many cases, where customers are currently trying to get to larger towns or cities, they could actually be picking up their cash from locations much nearer to their home. If you transfer money home, it is worth looking into just how far and wide the Small World pick-up network extends. There are over 253,000 locations for cash pick-up around the world.
The cash pick-up numbers
For example: if you send money to The Philippines there are 12,076 cash pick-up locations; in Bangladesh there are 3,557 cash pick-up locations; in Nigeria there are 820 cash pick-up locations; and in Colombia there are over 1,568 cash pick-up locations. With so many cash collection locations available, it's easy, safe and convenient for the person receiving your money transfer to find a collection point near to their home or place of work.
Who is cash pick-up for?
See the pick-up locations for the countries that utilise cash pick-up most frequently below:
SENEGAL: over 6,000 locations
GHANA: over 800 locations
DOMINICAN REPUBLIC: over 2,000 locations
CAMEROON: over 1,000 locations
BANGLADESH: over 4,500 locations
PAKISTAN: over 8,000 locations
COLOMBIA: over 2,500 locations
NEPAL: over 29,000 locations
It’s not just convenience either, using a money transfer service can pay off. According to the World Bank, banks are currently the most expensive remittance providers, with an average cost of 10.3% in 2019, compared to money transfer services, at just 6.1%.
It is hard to ignore that more and more people are turning to digital services when it comes to international money transfer, and Coronavirus has forced more customers than ever before to find alternatives. But, habits can’t change that easily. Many Small World customers are sending to friends and family who are either unable to access digital accounts or are simply more comfortable handling cash.