Cash transfers are a popular way to send money, especially for people who do not have access to a bank account or prefer to use physical cash. In this method, the sender can go to a money transfer operator (MTO) and provide cash that is then sent to the receiver. Here are the general steps to send money using cash transfers:
- Choose a money transfer operator: The sender can choose a money transfer operator that has a physical location where they can provide cash. Examples of such operators include Western Union, MoneyGram, and Ria.
- Provide the necessary information: The sender will need to provide the recipient’s name, location, and the amount they wish to send.
- Provide the cash: The sender will need to provide the cash to the MTO’s representative at the location.
- Receive a reference number: Once the transaction is complete, the sender will receive a reference number that they can provide to the receiver so they can collect the funds.
Pros of using cash transfers to send money:
- Accessible: Cash transfers are accessible to people who do not have access to a bank account or prefer to use physical cash.
- Quick transfer time: Cash transfers are usually processed almost instantly, allowing the receiver to access the funds almost immediately.
- No need for a bank account: Cash transfers do not require the sender or receiver to have a bank account, making it easy to send money to people who may not have access to traditional banking systems.
Cons of using cash transfers to send money:
- Transaction fees: Cash transfers may be subject to transaction fees, which can vary depending on the MTO and the location.
- Security concerns: Carrying large amounts of cash can be a security concern, especially in areas with high crime rates.
- Limited transfer amounts: Some MTOs may have limitations on the amount of money that can be transferred in a single transaction.