Peer to Peer Money Exchanges for Business

Mar 14

Peer to Peer Money Exchanges for Business

In today’s globalised world, a vast amount of money changes hands on a daily basis. Businesses transfer large sums across continents all of the time, but many of them are failing to do so in the most efficient manner. Finding the best way to exchange currencies should be a priority, but for many it simply isn’t and they are stuck in the routine system that has been in place for as long as any of us can remember. The goal of finding the lowest overall transfer fees from banks and brokers should be at the forefront of any businessman’s mind.

Thankfully, these days, peer-to-peer services offer foreign currency exchanges that completely cut out the banks. Now you can exchange money through P2P platforms, allowing you to deal with individuals rather than institutions.

Understanding P2P money exchanges

P2P sites allow users to exchange equal amounts of money of differing currencies, just as any bureau de change or bank has done for many years. The beauty of the system is that people always need money exchanged and the savvy ones are constantly on the lookout for the very best rates so the market almost creates itself.

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These providers even go the extra mile to guarantee your money’s security, if a good rate that you were expecting doesn’t exist they will often facilitate the trade themselves. Many of the major players in this new, yet long overdue, financial marketplace will cover the exchange and only charge a fee of half of a percent. This is only slightly higher than they charge for typical platform exchanges between individuals (around 0.35 percent for many of the bigger P2P exchanges).

There are some situations where these types of transfers aren’t immediately beneficial, such as when users are trying to exchange very small amounts of money. However, for normal transfers, a user can save a large amount on the standard fees and transfer charges that we have all become accustomed to pretty much immediately.

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The savings add up

Most financial institutions charge users between 2 and 5 percent, which means that peer to peer interaction is definitely more equitable and realistic. Typically, banks or bureau de changes would exchange £2000 and charge about £100 to change the currency (5 percent) including exchange rate margins and international transfer fees. For the same amount, common P2P platforms would only charge £10 for the same £2000 transfer, and that’s only if there’s no other individual out there to trade currencies with you. If there was, then it would cost even less, leading to amazing savings on your bottom line.

For these reasons, peer to peer platforms are having huge success with small businesses and even mid-cap companies. For those with concerns over regulation, the vast majority of P2P networks are fully regulated and operate to the same high standard expected of more established institutions.

Look out for firms that transfer the highest amounts and, obviously, ones that exchange your specific currencies. A good P2P international money exchange can help your business make savings that will allow you to grow far quicker than would have been possible just a decade ago.