When it comes to transferring money from one person to another, there is no need for either to use a bank account. There are money transfer services that quickly transmit the funds because of the speed of the Internet. As it is the data that moves from the sender to the recipient, the messaging of this information allows the transfer to be made. The cash does not physically move from where it was sent; it is only the data that is required for the various money services agents to release the funds.
Hand it over?
It is almost always physically impossible for you to hand over cash to someone. There are hindrances in this way of transferring funds, as there is no way that you can walk, ride, or fly faster than the speed of instant money transfers. The savings that you gain from using an online payment system is time, effort, and cost. It is no longer necessary to meet with someone for money to exchange hands, as there are several methods to send and receive money without using the banking system.
The mobile world has changed the way we transact. There are apps for nearly anything that we can do online such as shop, order food, and book a flight. There are also mobile apps that we can use for transferring money, which functions as an e-wallet to store funds and generally are prepaid – meaning that there should be enough funds in it before the amount can be transferred. Note that even if one chooses to store funds in an e-wallet, it is easy to use the money to make electronic payments.
Instant money transfers
There are worldwide money transfer services that offer cash pickup from their various agents. A person can remit from one of the agents in the affiliated network for it to be available to be cashed out by the recipient in one of their agencies in a given location. There are same-day transactions, but typically, the money transfer happens instantly.
Though these forms of paper money that can be exchanged for goods or even cash formerly required the physical presence of the giver and the receiver to be transferred or for the vouchers to be sent by mail. Nowadays, it is possible to send vouchers that are as good as cash via email and other similar online messaging services. One may also send vouchers to be credited to online shopping accounts and more.
When neither the sender or the recipient has a bank account, there are more options to choose from, such as funding a prepaid debit card or even using the cryptocurrency’s blockchain system. The forms of money are not the same for all online payment methods, though the most common money transfer services stick to the traditional use of state-backed currencies.
New forms of money
The digital world has changed the forms of money for no longer are we using just state-backed currencies but also Bitcoin and other cryptocurrencies. However, you have to note that Bitcoin and cryptocurrency exchanges are still reliant on state-backed currencies