The History of International Money Transfers
Have you ever wondered how money transfer really began? The history of money transfer dates back years, but we’ll keep this a quick read.
Traditionally, people bartered. Wherein they would simply exchange goods or services. Like a bag of flour for a pack of sugar or a bag of beans for a sack of rice, and so forth. However, what if you didn’t agree on the value of goods in exchange or what if you didn’t need what was offered in return? This simple issue carved the path to one of the greatest inventions of all time: money. And because money is not meant to stay static, it further led to the need to transfer it from one person to another, locally at first and finally, across the world. Soon enough, money began to travel faster and in larger volumes.
Initially, only banks processed money transfers from one local account to another. At the time, this service met the needs of people since their lives were relatively confined, with little to no exposure to the international world. However, the onset of globalized industrialization brought upon a massive change.
The Industrial Revolution marked a significant turning point. It deeply impacted human society as a whole, positively. As the age of globalized industrialization started to boom, an increasing number of people migrated and moved overseas in search of employment opportunities, and hence, banking became progressively globalized. Soon enough, banks stepped up their money transfer game, and people started to send money internationally at a personal level to their families. Our needs were changing at a rapid pace. The ever-increasing popularity of wire transfers gave birth to Money Transfer Organizations. Private owned companies offered the same service that didn’t come with the hassles associated with the banking sector.
In the digital age, the methods of money transfer further evolved and gave way to the modern-day equivalent of wiring money. As online money transfers stepped into the spotlight, it opened doors for people to use a platform that’s not only more secure and accessible but also at a fraction of the cost. Cross-currency and cross-border money transfers became more convenient than ever before.
Today, the fintech industry is thriving. An increasing number of private organizations take center stage to offer efficient, cost-effective services. With the ever-improving technology at our disposal, the evolution and methods of money transfer will inevitably continue to transform, but the primary need of people remains unchanged. The need to establish trust and to make sure the service offers value for money still retains top priority to this day.