People sending money overseas could be paying over the odds and exposing themselves to risk unnecessarily according to leading online payments provider, PayPal. A report out today from the Department for International Development reveals that some £440m is sent each year from the UK to help families abroad - and the most important factor for people when deciding how to send money home was whether it would arrive safely.
PayPal's encrypted system, which means a sender's financial details are kept private means it is the most secure way to transfer money abroad.
A quarter of people complained that in general charges for sending money abroad seemed too high, which may explain why 15% of people use slow and less secure methods, such as sending money with friends or relatives travelling back home.
High street banks tend to charge a flat rate for international transfers, whereas other money transfer services such as Western Union charge varying rates depending on the size and destination of the transaction (i.e £14 for transferring £100 to the US). For people with a balance in their PayPal account a transfer between accounts is free - no matter where they are in the world. Those people who fund a PayPal account with a credit or debit card would be charged 3.8% of the transaction value (i.e £3.8 for transferring £100).
Geoff Iddison, Chief Executive of PayPal.co.uk says:
"Huge numbers of UK households are sending money abroad to help relatives to pay for basics such as food, medical bills and schooling. When you are sending money overseas for these kinds of reasons you don't want to risk anything going wrong or be hit with high rates. PayPal is a safe and secure online payment system and once both parties have accounts set up it is extremely easy to use for regular payments. We would encourage anyone who is sending their hard earned money home to support relatives to shop around for the best deal."
Payments can be made to anyone with an email address. If the recipient does not have a PayPal account, they receive an email telling them that a payment has been made to them and that they can open an account to accept it.
There are over 10 million PayPal account holders in the UK alone, over 100 million worldwide and it can be used to make online payments in 55 markets. PayPal users can currently make or accept payments in:
- Canadian Dollar
- Euro
- Pounds Sterling
- US Dollars
- Yen
- Australian Dollar
To set up a PayPal account please log onto: www.paypal.co.uk
For further information about sending money home please log on to: http://www.sendmoneyhome.org
For further information please contact:
Chloe Mann, Lansons Communications on 0207 294 3681 or chloem@lansons.com
Sean Williams, Lansons Communications on 0207 294 3690 or seanw@lansons.com
Sophie Lilley, Lansons Communications on 020 7 294 3657 or sophiel@lansons.com
Cristina De Parres on 020 8605 3218 or cdeparres@paypal.com
Notes to Editors
How PayPal works
PayPal is a service that enables anyone with an e-mail address to make payments online - whether personal or business - within a secure online environment.
PayPal allows its users to open an online account. You fund your PayPal account by "buying" e-money with your credit or debit card or from your bank account (just as you would by filling up your wallet with cash from an ATM on the high street). You can also fund your account by receiving e-money sent from another PayPal user.
And when buyers send a payment to a merchant, PayPal simply sends the money and never divulges credit card or bank account details to the merchant or seller.
For people selling goods, PayPal is a convenient and cost-effective way to accept credit and debit card funded payments online without the need for a credit card merchant account.
For up to date information on the services offered by different money transfer providers in the UK customers can visit the DFID funded http://www.sendmoneyhome.org website.
About PayPal (Europe) Ltd
PayPal (Europe) Ltd. is a UK-based company, regulated by the FSA as an Electronic Money Institution (ELMI) and became regulated by the FSA as such in February 2004. As a regulated institution, we are subject to general prudential supervision by the FSA. It is a subsidiary of PayPal (International) Ltd., which is based in Dublin and is in turn a subsidiary of PayPal Inc. of San Jose, California. PayPal is 100% owned by eBay. PayPal was set up in the US in December 1998 and acquired by eBay in 2002. PayPal has over 10M accounts in the UK, over 100M accounts worldwide and can be used to make online payments in 55 markets.