5 ways to transfer money online

Posted by neha sharma on May 29th, 2019

With the evolution of smartphones and the internet, transferring money has become very simple. From traditional modes of cash, cheque or draft transfers, we have come to using internet banking and even mobile applications to transfer funds. There are several different ways to send and receive money.

Transferring funds online is extremely convenient and simple. All it takes is a few clicks for the funds to get transferred. These funds get credited in the recipient’s account either instantly or in a couple of hours. Online fund transfers are also secure with most fund transfers requiring additional authentication by banks which bars unauthorized users. These transfers can be done anytime from the comfort of your home. It doesn’t take much effort to make these transfers.

Are you wondering how to transfer funds online? Let’s take a look at the different options that people have to transfer their funds.

Here are 5 ways to transfer money online:

1. Using internet banking:

Internet banking was one of the first ways of sending money online using the internet. This allows you to log into your bank account and send money to a third party. There are two ways of transferring funds using internet banking:

• National Electronic Fund Transfer (NEFT)
• Real Time Gross Settlement (RTGS)

In NEFT, fund transfers are settled between banks in batches throughout banking hours, whereas with RTGS, transfers directly happen in the RBI books and funds are credited immediately. Most businesses use either one of these to make fund transfers to their employees and vendors. The cost for such transfers is nominal i.e NEFT costs between Rs. 10 to Rs. 15 per transfer whereas RTGS costs between Rs. 15 to Rs. 25 per transfer. The cost depends on the amount of transfer.

2. Using mobile banking:

Most banks have mobile banking applications through which customers can transact with the bank. These bank money transfer app have most of the functions that are available to customers through internet banking such as fund transfers, passbooks, bill payments etc.

3. Using money transfer apps:

These include wallet-based apps which can be used to transfer funds to people. Some money transfer apps are PayTM, PhonePe, PayZapp by HDFC Bank, Mobikwik etc. These money transfer apps started out as wallets but have evolved to provide a range of other payment solutions to customers.

4. Using UPI apps:

UPI or Unified Payments Interface is a way of transferring funds from one person to the other using a UPI ID and a PIN as verification. There is no need to use a bank account number for such transfers. UPI transfers happen immediately with funds getting credited immediately to the account of the recipient. UPI transfers are completely free of cost. There are many UPI based apps. Banks also operate their own independent UPI apps along with BHIM which is managed by NPCI. With so many choices, it is difficult to decide which is the best money transfer app.

5. Using payment gateway websites:

These include websites like PayPal, Payoneer, etc. which can be used to transfer funds from one person to the other. These payments may not necessarily happen through a bank account. However, these websites give the recipient the option to withdraw funds into their bank account or use the gateway website to make other payments without withdrawals.