Transfast money transfer review

Transfast®¹ used to be a US licensed provider of international money transfers. However, Transfast stopped operating in the US from 2020. The service now offers cross-border remittance services in the Gulf Cooperation Council (GCC) countries, but can’t be used by US residents.

This guide walks through the services that Transfast previously offered in the US - and introduces some alternative options like Wise which can help US residents send money overseas cheaply and conveniently*.

What Transfast services were available in the US before 2020?

Prior to shutting its US service, Transfast let customers send money online, with a choice of ways for the recipient to get the payment, including direct bank transfer, cash pickup and more.

When services were offered in the US, Transfast allowed you to choose between having your money delivered directly to your recipient’s bank account, or having them collect it in cash at an agent location.

In a few countries you could have the money home delivered to your recipient, loaded onto a cash card, or used to pay bills directly. Customers could pay for the transaction by bank transfer, or with a credit or debit card.

Fees for transfers from the US could include:

• Transfer fee which varied according to destination, payment value and deposit type

• Exchange rate markup which varied by currency

• Costs associated with processing the payment through the SWIFT network

To see the costs of your Transfast payment, customers could model the transaction online - however, to spot some of the applied costs you’d need to do a bit of work.

For example, to see the exchange rate markup you’d have to compare the rates offered to the mid-market exchange rate, which is the one you’ll find on Google.

The mid-market rate is the one that banks and currency services get when they buy foreign currencies. However, providers don’t necessarily pass that rate on to the customer. Instead they might add a markup, which is a percentage fee and which can be difficult to calculate.

Not all services do this. For example, Wise uses the mid-market exchange rate for international payments, and charges an upfront fee. We’ll cover Wise as one of the Transfast alternatives you might pick in just a moment.

What Transfast services are now offered for eligible customers?

Today, Transfast works with customers in the GCC - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

With Transfast, eligible customers can send money online for deposit to bank accounts globally.

Transfast also operates a cash payout network with approximately 280,000 cash pick up locations globally, which can be very convenient for getting money to someone who can’t access a bank account.

Transfast alternatives for US customers

Transfast can no longer be used for international payments from the US. However, using a specialist service to make an international transfer is still a good idea which could help you save money compared to sending a bank wire. Transfast alternatives available in the US include Wise, PayPal®² and Western Union®³. Which is best for you will depend a bit on the type of payment you’d like to make.

Here’s a quick overview of these providers - we’ll look in more detail in just a moment:

Note: details correct at the time of writing, 04.12.2024

Wise

You can send international transfers to 160+ countries with Wise, and also open a Wise account to receive and hold foreign currency payments. International transfers use the mid-market exchange rate with a low and transparent fees*.

You can arrange your Wise transfer online or in the Wise app, and pay by bank transfer or using a card. Funds are then processed quickly and deposited in your recipient’s bank account. 50% of transfers with Wise are instant, and 90% arrive in 24 hours*.

Get started with Wise

Note: Transaction speed claimed depends on individual circumstances and may not be available for all transactions

PayPal

PayPal supports international transfers to friends and family more or less globally. You’ll need to have a PayPal account, and your recipient must also have a PayPal account to get their money.

PayPal transfers can be funded with a linked bank account or card, or you can use any balance you hold in your PayPal account if you’d prefer. There are several different fees to be aware of - including a possible domestic transfer fee, a 5% international surcharge, and a 4% currency conversion fee to pay⁴.

Western Union

Western Union is one of the most well known money transfer services in the world, offering international transfers you can set up online, in-app or in person by visiting an agent location.

Western Union could be a good Transfast alternative if you’re looking to send money to someone and have them collect it in cash, thanks to an extensive global network of agents.

Western Union fees do vary quite a lot, and can include a variable markup on the exchange rate used to convert your dollars to the currency required for pick up or deposit.

Generally you’ll find that paying for your transfer in cash or with a credit card is more expensive than using a bank transfer or debit card - but all fees are disclosed in advance, so you can compare and choose.

Using a specialist provider of international payments is a smart plan. While cross border payments from banks can be inefficient and expensive, currency and payment experts can often offer you a better deal. However, you’ll need to check out several options to find the right one for you. Look at the fees and exchange rates available from services like Wise, and some of the other providers we’ve highlighted, to get the best deal over all.