Last Updated on January 21, 2022 by Aaron Thompson
People often ask what is a money transfer and how long does it take for money to transfer.
Well, to put it simply, money transfer refers to sending money from one person or entity to another. Money transfer can be done in several different ways. Including but not limited to: through the use of a bank, money order, or wire transfer. People are increasingly using money transfer services to send money overseas.
Over the last two decades, foreign migrant workers have increasingly sent a more significant share of their earnings. This is due to many benefits associated with sending money this way. These include lower costs, convenience, speed and peace of mind for both the sender and recipient of the funds. Amazingly, that’s more than three times what it was in 2000 which was only about US$152 billion annually.
Let’s find out the best answers to common concerns of a majority of the people about money transfers such as:
What happens after you wire transfer your hard-earned cash?
How does it get there?
What are the advantages and disadvantages?
After reaching countries like Nigeria, how do the service providers distribute it?
Who gets what and when?
Keep reading to land with the best money transfer solution.
MOBILE MONEY AND REMITTANCE SERVICES IN NIGERIA
Nigeria has the largest money transfer market in Africa due to many factors, including its large diaspora population. The World Bank estimates that the year 2016 recorded approximately US$21 billion transferred to Nigeria. Today, over 50 providers holding licenses are providing various types of money transfer facilities in Nigeria. These include banks, mobile money operators and non-bank businesses.
The global average cost of sending remittances from G7 countries stood at 6.32 per cent. According to the World Bank, it’s about 9.85 per cent while Nigeria has one of the lowest costs in Africa with an average cost of around 3.5 per cent.
The formal money transfer industry is dominated by three players – FirstBank, GTB and Zenith bank which account for over 60 per cent of the market share. According to reports, FirstBank continues to be the largest wire transfer operator in Nigeria accounting for more than 30 per cent of all transactions processed across all channels with over 6 million customers served at their branches alone.
This dominance is largely due to their early adoption of internet banking and mobile banking services that allow direct transfers into users’ accounts through different channels. Mobile money providers like Orange Money (formerly known as Equitel) enforce no transaction fee when sending money from one mobile money account to another. This is a very important factor for those who have friends or relatives on the other side of the Lagos-Ibadan expressway.
As it can be difficult and expensive using conventional means, remittance volume growth will be driven by increasing demand from Nigerian Diaspora. It has been growing at an average annual rate of 5 per cent over the last five years reaching about 17 million people; many of whom remit funds back home.
Nigeria to limit transfers to $1000 per person PER MONTH
Due to the high rate of fraud, money laundering and terrorism financing, the Central Bank of Nigeria is proposing a new policy. It will limit transaction amounts when sending money out of the country via formal channels. They are proposing that only an individual can send up to NGN 1 million or its equivalent in any other, foreign currency for personal use in a month through any bank in Nigeria. You must apply for special permission from the Federal government through the CBN clearinghouse department using form CED 424-2/3 with supporting documents.
According to the African Development Bank reports, over 30 per cent of the funds are sent home. These statistics are particularly important in the face of many Nigerians’ aspirations. Due to the high unemployment rate among graduates as compared with their counterparts in other countries on the continent. The new policy may further affect these ambitions, especially when considering over 4 million unemployed college graduates in Nigeria.
Transfer Time – How long does it take for money to transfer?
When you make a bank transfer, you want to be able to plan ahead and know how long it will take for the recipient to see your money in their account. If you use faster payment methods for sending money, you should receive the payment immediately. However, it can take up to two hours before you receive the payment. Most banks offer tracking facilities for these types of payment, to enable you to monitor the progress of your payment as it moves between organisations. This facility isn’t available for all banks, so you should check with your own bank whether it offers this facility.
The majority of successful Faster Payments made between customers are credited to accounts within seconds. So in most cases, you will not have to wait very long before the funds reach their account. Every Faster Payment that is created is assigned a unique transaction reference number. In the world of finance people often find themselves dealing with confusing terms. The terms include ‘credit card balance,’ ‘interest rate,’ and ‘payment plan.’ But one term that nearly everyone has had to deal with at some point in their life is the term “transfer time.” Transfer time refers to the length of time it takes for money transfer from one account to another. For example, if you transfer money from your checking account to your savings account, how long will it take? If you transfer money overseas, how long will it take now that more countries have joined the Eurozone?
Overview of transfer times
The transfer time will depend on the bank and the type of account you’re transferring to. Money Transfer will usually take one business day. Although, sometimes, it can take up to three business days. While transferring money, the senders will need to send money via wire transfer, depending on the sending service.
How to send money to Nigeria swiftly and securely?
Nigerian diasporas need not worry anymore. One of the leading remittance service providers, ACE Money Transfer, is always there to help. The company offers the most reliable, swift, secure, and convenient money transfers to Nigeria. Nigerian expats in the UK and other countries can send money to their families with the best exchange rates using ACE’s services.
You must have found this article helpful! If you have any concerns, you can contact the most reliable online money transfer service provider ACE Money Transfer.