Headquartered in London and focused on the global market, Paysend is a relatively new international money transfer service. Fully regulated by the United Kingdom’s Financial Conduct Authority (FCA), Paysend uses an innovative model to deliver more choice to its customers. You can use Paysend to deliver funds to a recipient’s bank account or to arrange a card-to-card transfer between yourself and another individual.
In addition to its core money transfer service, Paysend also offers several other unique features. The company’s Global Account app lets you deposit, store, and access money in a digital wallet app, making it easy for frequent travelers to ensure they always have local currency available, no matter where their travels take them. Paysend also offers corporate accounts for businesses.
Let’s dig into Paysend’s person-to-person money transfer service and examine its pros and cons.
Pros and Cons of Paysend
Here’s what customers and fintech insiders especially like about Paysend:
- Fast and affordable service
- Excellent security
- 24/7 live customer support
Paysend also has a couple of drawbacks:
- Review times for additional identity verification documents can be long
- Supports a relatively small list of countries from which customers can send money
Paysend formed in 2010 and initially operated as a support service for the banking and payment processing industries. The company’s money transfer service launched in April 2017, and Paysend quickly went on to become the first fintech business in the world to support card-to-card transactions between senders and recipients in different countries. Paysend has since launched several other specialized and niche products, but its international money transfer services remain the core of its business.
Paysend maintains partnerships with major financial institutions and credit card companies, including Visa and MasterCard. As of January 2021, Paysend has served almost three million customers and supports financial transactions across more than 90 countries and territories.
How It Works
Customers can access Paysend through desktop computing systems or the mobile app, which is available in both the App Store and Google Play. Person-to-person transactions follow a quick and easy five-step process:
- Sign up for free and create your Paysend account.
- Initiate your first transfer by clicking the “New Transfer” button, specifying the amount, and entering your recipient’s bank account or card details.
- Review the transfer information for accuracy and confirm your transaction.
- Use the app to track your transfer in real-time or monitor its progress on your desktop system through your Paysend account.
- Request customer assistance any time of day or night if you need it. Paysend offers multilingual chat features around the clock and also offers email-based customer service support.
Note that when you sign up for the service, you will need to verify your identity and enter an authorization code. This code is normally distributed by SMS text message to your telephone, but you can also receive it by email if you prefer. Paysend also requires customers to enter authorization codes as part of the transfer confirmation and verification processes.
Most customers use their credit or debit cards to pay for their Paysend transfers. However, the company also accepts payments through online banking.
Features and Performance
Paysend has a reputation for being a fast international money transfer service. Card-to-card transactions usually complete in near-real-time, delivering funds to your recipients with lightning-fast speed.
Senders can also arrange to have funds deposited in their recipient’s bank account. This takes a little longer, but most of these transactions fully resolve in one to three business days. The actual speed depends on local laws and regulations in the recipient’s country of residence, as incoming funds must clear administrative checks before being released.
One important note: while Paysend delivers funds to recipients in more than 90 countries as of January 2021, it sends funds from a smaller number of participating nations. While the list of supported sender and recipient countries is always changing, information from January 2021 suggests that Paysend is available to senders in 48 countries, mainly in North America, Europe, and limited parts of the Asia-Pacific region.
The company does not appear to impose minimum amounts on its transactions, but there are some maximums in place. Senders can transfer a maximum of $1,000 per month, but this limit can be raised if you provide additional verification documentation including proof of identification and proof of address.
Paysend uses bank-grade encryption technology to safeguard customers’ personal data and sensitive information.
Costs and pricing
Paysend uses a flat-rate pricing model, which adds a low transaction fee to each transfer. These fees vary slightly from one country to the next. As of January 2021, customers in the United States pay $2 per transfer, which is a low rate compared to many competitors.
Like all international money transfer providers, Paysend also generates revenue by marking up the exchange rates it pays when converting your funds from the original currency to the destination currency. Paysend does not openly specify its margins.
All available information suggests Paysend offers very fair exchange rates that beat virtually all major banks and most fintech competitors. Their exchange rates are backed up by some of the lowest transaction fees in the industry.
The Bottom Line
Paysend offers some of the fastest transfer times and lowest transaction costs in the industry. Few competitors can challenge Paysend’s speed and low rates, and that counts for a lot. It's also highly regarded for its 24/7 customer support and high level of security. As you check out money transfer services, Paysend is worth considering.