What is the limit in how cheap an international money transfer can be


If you are like me, passionated about money transfer, you are at the good place. Today, we will think and innovate about the theme of money transfers and how can we reduce the price of sending money abroad. We will wonder about how to cut the cost on the last mile, we will wonder about how in the future can we reduce the cost of a transfer and so on. Let’s first take a big breathe, a big inspiration and relax in our chair. I’d like to suggest a good bourbon for a good afternoon talk.

What is expensive today?

Expensive is a relative term indeed, what do I mean when I say that an international money transfer is expensive? Hum… Let’s take some examples here. Sending money from the UK to Kenya cost in average 12% if you are sending 300GBP. This is expensive. Let’s see another example, buying a house abroad in Singapore from the US would cost you up to 10 000USD in change, which is around 0.5%, this is also really expensive. If we try to make a formula out of it. I would say that expensive is everything that is more than 0.1% multiplied by the inverse of the amount you would like to send.

How tomorrow can be better

We can revolutionize these fees. One way is to compare when you send the best solution to make your money transfer, using websites such as Moneytis. Another way is to use better technology, such as blockchain technology  to reduce the cost. The best is to avoid currency exchange rates and to always use the same worldwide currency. We could imagine a system where the is a common currency that everyone can use and when someone needs to pay to someone who doesn’t accept it, the money is automatically exchanged and the person receives what he wants


Though it can never be free, even if we use blockchain and a worldwide currency, a transfer will always have a small cost. That should not be a problem if it stays inside the formula we just defined.


What will be the future of money transfer overseas ?


Elon Musk intends to send people to Mars in the coming years. What impact will this have on money transfer overseas ?

Will we send money to Mars some day ?

Money transfer overseas is already a huge and impressive Market. There are more than 50 000 different country couples. Sending euros to pounds is one country couple and sending pounds to euros is another one. People send 600 billion dollars per year from one currency to another. And companies send ten times more! As you can see, money transfer overseas is not an isolated process and is a regular need for many people. What then if we start having to send money to Mars ? Will we be able to use new servives for example ? How will we compare them ? Well unless Elen has also designed a new world in which people no longer need money, then it seems we might have to be able to send money to Mars someday.


How many people are concerned by money transfer overseas?

Today, over 250 million people live outside their homeland. These people are all potentially concerned by money transfer overseas. And if we had the extra 1 billion Martians willing to send money to earth, see how many people are concerned by money transfer overseas which could even be called money transfer over planets in this last case ! More seriously if we forget about the Martians we haven’t yet met in person, this is already a huge market of 250 million people which is not declining…on the contrary. Some recent studies have shown that we might reach 10% of the world population living outside their homeland. That is to say 3 times more than today !

Let’s see how all this evolves & I am curious to see what the exchange rate between “Martian crown” and euro will be 🙂