How OFWs Can Send Money Safely and Efficiently

It is important for OFWs to be able to send money safely and efficiently back to their loved ones in the Philippines and helping the country’s economy while doing so. However, it can be challenging to find the right platform to do this as there are a lot of options.

In this article, we will look into PayPal specifically, but also discuss alternative payment options and general tips when sending money back home to the Philippines. Read on if you want to know more.

how ofws can send money safely and efficiently

A Guide for Using PayPal for Money Remittances

PayPal is one of the most popular online payment platforms in the world. This website or mobile app “enables payments between parties through online money transfers,” according to Investopedia. It is one of the easiest ways for OFWs to send money to their loved ones and even pay bills using a credit card, debit card or bank account.

So how does one set up a PayPal account? Here are the steps:

  1. Go to the PayPal website or app and click on “Sign up”
  2. Choose “individual account” if you want to use PayPal for personal use.
  3. Enter your email address and follow the verification instructions.
  4. Enter your mobile number and wait to receive a one-time password

Link your credit or debit card to begin making transfers

As an alternative, you can link your paypal to a bank account instead of a card. You can do this by going to the “Wallet” section and providing your bank details.

Sending Money with PayPal

Once you have your PayPal set up, you can start sending money easily  by following the steps below:

  1. Log In: Access your PayPal account on a computer or mobile device.
  2. Send and Request: Click on “Send and Request” from the dashboard.
  3. Enter Recipient Details: Provide the recipient’s name, email, or mobile number.
  4. Specify Amount: Enter the amount and choose the currency.
  5. Choose Funding Source: Select the linked bank account, credit/debit card, or PayPal balance.

Important Considerations

Before making any transactions via PayPal, you must take note of the following:

The recipient must have a PayPal account to access the funds you sent them

  • PayPal charges a 4% conversion fee when you send money in Philippine Pesos
  • If the amount you send to a Philippine bank account is greater than 7,000 pesos, PayPal will charge a withdrawal fee of 50 pesos.
  • If you send money to a bank card via paypal, there is a 1% fee.

Alternatives to PayPal

Aside from PayPal, there are alternative remittance services, some of which offer lower fees and more competitive exchange rates. The following are some of the alternatives to PayPal:

While PayPal is a convenient option, several other remittance services often offer more competitive exchange rates and lower fees. Here are some top alternatives:

1. Xoom

Xoom is a company that is a subsidiary of PayPal. Much like PayPal, Xoom allows OFWs to send money to the Philippines through bank accounts and mobile wallets. However, Xoom also offers home delivery and cash pick up options, and typically has lower fees than PayPal. Moreover, some clients suggest that Xoom even has faster transfer times than PayPal.

To summarize, here are the Advantages of using Xoom:

  • Fast Transfers: Most transactions are completed within minutes to a few business days.
  • Higher Transfer Limits: Suitable for larger remittances with minimal documentation.

2. Remitly

Remitly provides both express and economy transfer options tailored for OFWs. It offers competitive exchange rates and frequently runs promotions for first-time users.

Remitly has the following features:

  • Multiple Delivery Options: Funds can be sent directly to bank accounts, mobile wallets, or as cash pickups.
  • Promotions and Discounts: Regular deals help maximize the amount received by beneficiaries.

3. Wise (formerly TransferWise)

Wise is renowned for its transparency and low fees, offering real exchange rates with minimal markups.

Here are some of the benefits to using Wise:

  • Transparent Fees: Clear fee structure with no hidden charges.
  • Fast Transfers: Most transactions complete within one to two business days.

4. Panda Remit

Panda Remit offers quick and cost-effective transfers to the Philippines, supporting various payment methods including GCash.

Here are the pros of using Panda Remit:

  • Fast Processing: Bulk transfers complete within minutes to a few days.
  • Competitive Rates: Low fees and attractive exchange rates.

5. Instarem

Instarem focuses on providing low-fee international money transfers with competitive exchange rates.

The following are the benefits to using Instarem:

  • Wide Coverage: Sends money from multiple countries to the Philippines.
  • Transparent Pricing: Clear fee structure with no hidden costs.

6. WorldRemit

With over a decade in the business, WorldRemit offers reliable and secure money transfers to the Philippines, supporting numerous funding and delivery options.

Here are the main features of WorldRemit:

  • Global Reach: Sends money from over 50 countries.
  • First-Time User Promotions: Free transfers for the first three transactions.

Preparations before transferring money

Before you start transferring money online, you should have the following:

  • Bank account –you need to have a valid bank account with enough funds for the intended transfer.
  • Personal details – your personal information needs to be accurate, in the sense that it matches with the documents you sent for identification
  • ID Proofs – you need to have soft copies of your bank statements, utility bills, passport for identity verification
  • Recipient information – you need to have complete details of the person you are sending money to, including their bank account or their mobile wallet details
  • Secure device – you need to have a personal device that you know you can safely perform money transactions with.

Sending money back to the Philippines is crucial for OFWs. This is the main way Filipinos working abroad can support their families and communities. PayPal is one such platform that makes these transactions convenient, but there are alternatives as well, like Xoom, Remitly, Wise, Panda  Remit, Instarem, WorldRemit, and others. Do your research to ensure that the platforms you use are legitimate and have a solid reputation.

error: Content is protected !!