3 Easy Ways to Send Money Online

Owe someone money for pizza last night? Want to send money to a niece or nephew for their birthday? Need your roommate to send you money for rent? It’s all super easy with a peer-to-peer (P2P) payment app.

Peer-to-peer payment apps are a popular way of sending money to friends and family or paying local small businesses. Around 93% of Americans have used P2P services in some fashion.¹

How do P2P payment apps work? It’s just a few simple steps:

1. Download an app and connect your bank account, debit card, or credit card.
2. When you’re ready to pay someone, search the app for their unique user handle.
3. After confirming it’s the right user, enter how much money you’d like to send.
4. Confirm all the details (including the recipient and the dollar amount) and hit send.

You can also request money from other users if they owe you for anything.

Money transfers through P2P payment apps may take a few business days, though the recipient of the funds can choose instant payment for a fee.

Pros and cons of peer-to-peer payment apps

P2P payment apps make a lot of sense, but just be aware of where they excel.

Pros

• Ease: Most P2P apps make it easy to download the app, find your friends, connect your bank account or card, and send money to friends and family.
• Cost: Generally speaking, sending money via P2P apps is free or low-cost (unless you, as the recipient, choose immediate access to funds).
• Convenience: Using a smartphone app to send and receive money is much more convenient than carrying cash, writing checks, or keeping tallies of who owes whom what so you can settle up later.

Cons

• Domestic only: Most P2P apps don’t let you send money internationally.
• Competing apps: While some apps let you interact with other apps to send and receive money, others don’t.
• Fees: Apps may charge fees for using a credit card instead of a debit card or bank account, and you’ll also probably pay a fee for instant transfers.

Many online and traditional banks have a payment feature for transferring money to friends and family built directly into their mobile banking app. In most cases, sending money is free, and the funds are available almost instantly.

This transfer feature is generally built into your mobile banking account and allows you to send money directly, so you don’t need to connect to an external money-transferring app. As long as the recipient is already enrolled in the bank’s mobile payment app, like Zelle, you’ll only need to input information associated with their account, like their email or phone number, to send them money.

Some bank transfer apps may require the other person to bank with the same financial institution, but that’s not always the case.

Note: if you want to move money from one bank to another (meaning from one of your bank accounts to another one of your bank accounts), you’ll need to connect the banks via an online platform or mobile app to initiate a transfer. Here’s how to transfer money from one bank to another online.

Pros and cons of bank app transfers

Bank transfer apps offer several advantages, but there are drawbacks to consider as well.

Pros

• Security: There is no need for third-party apps that access your bank account or personal data. Bank transfer apps are already built into your bank’s mobile app.
• Speed: In general, money transfers from one account to another via a bank transfer app are nearly instant.
• Cost: Typically, banks and credit unions offer this money transfer feature free of charge.

Cons

• Same-bank requirements: Sending and receiving money sometimes requires that the other person also belongs to the same bank. However, some banks use a popular third-party app integrated into their own mobile banking app, which makes it easier to transfer money to and from friends who belong to different financial institutions.
• No social interactions: Unlike many peer-to-peer payment apps, mobile banking apps with money transfer features typically don’t have a social component.
• Not international: Most bank transfer apps do not allow international transfers.
• Limited amounts: Banks and credit unions often limit how much you can send and receive in a set timeframe. This is not ideal for larger sums of cash.

Wire transfers pre-date mobile banking technology, but they’re still a relevant way to send and receive money electronically – and they can be domestic or international. Wire transfers are ideal for more considerable sums of money; while P2P and bank transfer apps typically have low daily or weekly transfer limits, you can send significantly more via wire.²

To wire money, you can visit your financial institution or use a wire transfer service, online or in person. You’ll need your ID, as well as a bank account number (if using a third-party service) to access the money you want to send

You’ll need a lot of information about the recipient to ensure the money is wired to the right person.³ Be prepared to provide the recipient’s:

• Full name, phone number, and email
• Bank name and address
• Bank account number and routing number

Pros and cons of wire transfers

Consider the pros and cons of wire transfers before deciding to send your money this way:

Pros

• Large sums: Wiring transfers allow you to send and receive larger sums of money. That makes them ideal for large purchases, like a down payment on a home.
• International: Unlike most P2P payment apps, wire transfers allow international transfers of funds.
• Security: Wire transfers are a safe and official way to send money electronically.

Cons

• Fees: Wire transfers may involve multiple fees. Senders should always expect to pay a fee; recipients may also be required to pay a fee to receive the money.
• Speed: Wire transfers are not instant. Depending on when you send the money, it may be available within hours (domestically), but it could take a few days.³

Practice the following safety measures when transferring your hard-earned cash to avoid falling for P2P fraud and money scams:

• Make sure the network connection is encrypted when sending money online by looking for ‘https’ in the web address bar and the padlock symbol in the top left corner.
• Never give away your account’s login credentials – not even to an app’s tech support team.
• Use built-in security features like PINs or multi-factor authentication to protect your accounts.
• If possible, only use peer-to-peer payment apps with people you know.
• Keep a record of all your money transfers.
• Double-check the dollar amount and the recipient’s details before sending the payment.
• Always verify unexpected requests from people you know, as scammers can hack your family or friends’ accounts to commit fraud.

Sending money online has never been easier, and you’ve got plenty of options. So, what’s the best way to send money online? That comes down to:

• Who the recipient is: If you and the recipient use the same institution that has an in-app transfer feature, that might be the fastest and safest way to transfer funds.
• Where the recipient is: If the recipient doesn’t have a U.S. bank or lives outside the country, you may need to do an international wire transfer to get them their money.
• The amount you’re sending: Some P2P payment apps and bank transfer apps limit how much you can send in a day, week, or month. For larger sums, a wire transfer may be the better option.
• Delivery time: P2P payment apps usually take a couple of business days, but they also likely offer an option for instant transfers (for a fee). In-bank transfer apps may be faster. Wire transfers, on the other hand, can take more time, particularly for international transfers.