Different ways to send money securely online

What are the different ways to send money to people?

There are many different solutions and tools available to transfer money to friends, family members, and others online.

Examples of ways to send money to people include:

• Money transfer apps
• Peer-to-peer (P2P) payments
• Bank transfers

Money transfer apps

Money transfer apps can offer fast ways to send money electronically. There are many types of apps to transfer money internationally, to businesses, or to friends and family. This method typically requires the recipient's email, phone number, or username to send funds through one of these apps.

Money transfer apps are sometimes free to download, but transactions may come with fees depending on the connected bank or transfer specifications. Business payments, large money amounts, and international payments may carry extra fees.

Some potential benefits of money transfer apps include:

• Safety and security. These apps can keep customers’ bank information protected, sometimes only using phone numbers or usernames to identify and verify recipients. With bank transfers, the recipient’s actual account information is typically required.
• Speed. Money transfer apps usually process transactions within minutes or even seconds.
• Accessibility. Money transfer apps are usually easy to download, set up, access, and use on a laptop or mobile device.
• Socialization. Many money transfer apps allow customers to personalize transactions with social features like emojis, animations, notes, and stickers.

P2P payments

Another way to send money to people is through peer-to-peer (P2P) payments.

P2P payments are made through a website or money transfer app, which is linked to each party's bank account or credit card. P2P payments can typically be made just a few taps or clicks.

Making bank transfers

One of the more traditional ways to send money to someone is through bank transfers. As established financial institutions, banks offer safe and secure ways to send cash.

This method involves transferring money from one bank account to another. Normally, the other person's bank account number and routing number are required to complete the transaction. Funds will commonly reach the other account in 2–3 business days.

Bank transfers may come with fees depending on where and when the money is being sent. International transfers, transfers to other currencies, or transfers to an account at another bank, for example, may carry fees.

Overseas transfers may also require more information, such as the receiving bank’s SWIFT (Society for Worldwide Interbank Financial Telecommunications) or IBAN (International Bank Account Number) code.

Safety and security

Safety and security are major factors when transferring money online. If money is not sent securely, personal and financial information may be at risk.

According to the Federal Trade Commission, people in the U.S. filed 5.7 million reports of fraud in 2021 and reported $5.8 billion lost.¹ The most common types of fraud include identity theft and imposter scams. Imposter scams were the most frequent type of fraud, which occur when fraudsters use hacking or phishing methods to steal people’s bank account information and make unauthorized transactions.