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The World has fast improved in technology and now, banks are not more just brick and cement buildings where one can go and deposit money and do some money transactions. There are now diverse banks with the likes of virtual or online banks. There are now physical or traditional banks and there are online or virtual banks.
With all of these, one will still not believe that there are some people without a bank account. Despite this, according to World Bank data from 2018, about 1.7 billion adults worldwide do not have a bank account or access to banking. Also, according to a recent FDIC poll, over 9 million Americans fell into these 1.7 billion.
If you need to send money to someone, you should consider transferring it to their bank account. The good news is that you have a variety of choices for money transfers. We'll go over some of the cheapest, quickest, and most straightforward methods for sending money to someone who doesn't have a bank account.
How to Transfer Money to Someone without a Bank Account
What is a Bank Account and how to Get one
A bank account is an arrangement with a bank that allows you to deposit and withdraw money while also receiving interest in some instances. And you can get either a Physical bank account, or a virtual bank account. To get an online bank account, is quite easier than creating a traditional bank account.
To create an online bank account, all you will have to do is to follow and go to our page showing you how to create and open an online bank account. Nevertheless, to open a physical bank account is more complicated and to do that, you will have to gather the following things;
- An email address
- Phone number
- Physical address
- Social Security Number
- An identification document
You can complete the process by getting all of these and open a bank account at any bank facility. You can go to the bank account's website or, if one is available, you can download their application. Then, using the instructions as a guide, fill in the blanks. Your bank will verify the information, and you will receive a response within a short period of time.
Now that you have your bank account, let's get started by showing you all ways by which you can send money to someone who does not have a bank account.
How to Transfer money to someone who doesn't have a bank account.
And to do that, you can follow any of the below ways.
1. Create an E-Wallet
One of the cheapest and easiest methods to send money to someone without a bank account is to open a virtual account with a provider like Venmo. You may sign up without any fuss or hefty fees (this is especially important when sending money internationally). An e-wallet enables you to send money quickly and allows the recipient to immediately access the funds you send. They have immediate access to the funds and can spend and withdraw them. (Really, it's that simple.)
There are several other E-wallets that permit one to send money to another person who does not have a bank account. And they are;
- Western Union
- Paypal
- Venmo
- Square Cash
- EcoPayz
- Google Pay
- Samsung Pay
2. Gift Cards
Gift cards are offered at several stores and financial institutions. You can give money to an unbanked person in the form of a gift card, but keep in mind that it can only be used for one thing.
Gift Cards can be owned by anyone. Whether you have a bank account or not and so if you have a gift card with money in it, then you can send it to another person who does not have a bank account. And from there, that person can withdraw the money from his gift card.
3. Money Orders
Money orders function similarly to checks. They aren't, however, tied to any bank account. Rather, you purchase one with the funds you intend to transfer to someone. Then you sign it and ship it to the appropriate recipient, who will be able to exchange it for cash. Money orders can be purchased at Walmart and CVS, as well as any post office, as well as a variety of food stores and gas stations.
They normally cost between $1 and $2. As a result, money orders can be a cost-effective and secure alternative to sending cash. You have a paper trail to account for the money you're sending because the money order comes with a receipt. Furthermore, you prevent the risk of your cash being lost in the mail or stolen. In most circumstances, you can also cancel a money order if the recipient hasn't cashed it yet.
4. Walmart-to-Walmart
Walmart2Walmart, the mega-cash retailer's transfer program, allows customers to move money between store locations or via a mobile application. Transfers can be sent directly from your phone or from any Walmart store in the United States or Puerto Rico.
To begin a transfer in-store, produce a photo ID at the customer service desk or money services center.
Choose the amount you want to send, the Walmart location where the recipient will pick it up, then pay for it with cash or a PIN-protected debit card. A fee will be required for the transfer.
The cash can then be picked up at the Walmart location of your choice by your receiver. Most transfers can be picked up in within 10 minutes.
5. Facebook Messenger
Quite surprising right but if you never knew about this then you will have to think of it right now. Right now, you most likely have a Facebook tab open. So why not use the platform to pay someone? You can now. Simply launch Messenger and select the dollar sign symbol.
Naturally, both you and the recipient must have a Facebook account. You'd also have to provide debit card information for both of you. This card, however, does not need to be linked to a bank account. For example, you can load money onto a prepaid debit card.
6. Prepaid Debit Cards
Depending on where you are located, you can use a variety of pre-paid card services. Although the majority of pre-paid card services need you to have a bank account, certain pre-paid cards do not.
If you live in the United Kingdom, certain large supermarket chains have pre-paid card services that allow you to send money straight to a recipient's bank account, make it available for cash pick-up, or have it delivered to their door.
Additional fees vary depending on the provider, the currency you're converting to, the country to which you're sending, the amount you're sending, and any sign-up fees. When it comes to ecoPayz, the service is available in all EU/EEA countries.
7. Money transfer services
A cash pickup transfer is a payment that your recipient can pick up in their nation as physical cash from a collection station. It's a good idea to double-check before sending because certain networks have a limit on how much cash may be picked up in a single transaction.
Select the receiving country and the location for cash pickup. Enter the amount you'd like to send, go to payment, and you're done!
Your recipient will receive a text message or email with all relevant details once the transfer is ready for collection. This includes the following:
- Collection number
- Amount to be collected
- Where to collect the cash
- ID documents needed for pick up
Then you will receive the money with or without a bank account.
Tips to think of before getting to send money to someone without a bank account
We'll recommend comparing multiple possibilities when sending money to someone who does not have a bank account to locate the best solution for your situation.
You have to think about whether you want the fastest, the cheapest, or the safest. It is sometimes the case that if something is done quickly, it will cost more. You don't want to compromise on security, though.
If you're moving money overseas, you should safeguard yourself and approach security as a primary concern.
The first thing to do is make sure there is maximum security. This means that if this person can't retrieve their money for any reason, the money can be returned with ease back to you who is the sender.
You'll also want to make sure that the individual receiving and paying the payment is the same person who sent it. If the payment is made in the name of another individual or if a nickname is used, they may not be able to receive it.
Final thoughts on how to send money to someone without a bank account
Millions of people in the United States and in the World at large still do not have bank accounts. If you owe them money, though, you don't have to give over cash or take a chance by sending money over snail mail.
From smartphone apps to prepaid debit cards, you have a lot of options. Even Facebook can assist with money transfers. In the realm of financial technology, it's an exciting time. You may also expect these services to improve in terms of intelligence, cost, and efficiency.
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