Transferring money from the US to an EU bank account is easy and can be done cheaply. New competitive online services exist to help you transferring money safe and sound, with as little fees as possible. These examples include WorldRemit, Transferwise, XE and Paypal.
Make EU Payments from the United States
As the name suggests, SEPA is only for EU residents and is only made in euros. This means that it is not possible to make a direct SEPA payment from the US. However, there are other ways for companies and individuals to make these transactions. In fact, in 2018, these transactions were worth more than $2 trillion. Here are a few platforms that will help you make EU payments from the US.
Transferwise is a fintech company started in the United KIngdom in 2011. The company helps people and companies transfer funds to many countries around the world. It also allows people to create international currencies. To transfer funds, all you need is to do is to visit this page, enter the amount of money you want to send, and then send instantly from your bank account.
The benefit of using Transferwise is that the conversation they use is the one you find on Google. When using traditional banks, they tend to manipulate the system to take advantage of the difference in exchange rates. Other advantages are:
- The platform is so transparent such that you can see the amount the recipient will receive before you send.
- It is a faster method of transfer, meaning the funds will arrive to the recipient instantly.
- You can use the website or the apps to send the payments.
- Using the Borderless account, you can save the funds in the local currency. In this case, you can create an EU account.
- It is a highly rated company.
Another alternative to Transferwise is WorldRemit. Its system works in a similar way to that of Transferwise. To send money, you just need to visit the website, select the country you are sending from, the country you are sending to, the amount, and just create an account. With WorldRemit, the customer can receive the funds through cash pickup at a local agent, bank transfer, mobile money, and airtime.
The advantages of sending money using WorldRemit are:
- An easy process to use.
- Excellent reviews from its past users.
- You can send money on a 24/7 basis.
- Has served more than 4 million customers.
- A fast method to send money.
Paypal is the biggest money transfer in the world. Using its platform, you can easily send money to your friends and business partners in the European Union. To do this, all you need to do is to create an account using your email address, verify your card, top-up, and send it. After receiving the funds, the customer can easily withdraw it to their account or shop online.
They main advantages of using Paypal are that it is easy to use, secure, and has more than 35 million users in the European Union.
N26 and Revolut Money Transfer From US
Other than the above methods, the US will soon get two of the biggest online banks in the European Union. These are Revolut and N26. These accounts will help people from the US send money easily to the EU.
Making SEPA Payments From US
Therefore, while it is not possible to access SEPA from the United States, you can easily send money from the US to all countries in the European Union. Using Paypal, Transferwise, WorldRemit, and other traditional methods like Moneygram and Western Union, your customers and relatives can get these funds within minutes.
The European Union is made up of 28 countries and a total population of more than 512 million people. In the union, a person from any country can travel and settle in another country without the need for any documentation. This provision has led to the increased movement in the region. It has also led to the continued business relations. Therefore, the need to transfer money by businesses and individuals has continued to rise.
What is SEPA
To simplify the process, the European Union has created a number of methods. For example, it created the International Bank Account Number (IBAN), which is used in the EU and other countries. In 1999, the region developed the idea of creating a system to simplify the interborder transfer of money. This led to the creation of the Single Euro Payment Area (SEPA). After years of development, SEPA was passed by the Payment Service Directive. It is now managed by the European Central Bank and the European Commission.
SEPA helps to harmonize and promote freedom of movement of EU residents. It also helps promote trade among the members of the union. It has simplified the money transfer such that a 15,000 euro transfer takes about 20 seconds. In addition to the EU members, SEPA is used by other 6 countries like Iceland, Liechtensein, Norway, Monaco, Andora, San Marino, Vatican, and SWitzerland. All banks in these countries, except investment banks are included in SEPA.
To send money using SEPA, all you need is to visit a local bank branch and send the payment. This should only be in euros and all you need is the payee bank details.
Kasper is our expert for saving, investing and bank accounts. Kasper holds an MSc in Mathematics and worked with Mercedes-Benz and the Dutch tax authorities.