In this helpful guide, we’ll run through all the best options for sending money to someone who doesn’t have a bank account. This includes online money transfer services, mobile wallets, money orders and many more.
If you’re sending money to someone in another country, Wise could potentially the best option to use. You can send money worldwide for low fees¹ and the mid-market exchange rate. Your recipient will need a bank account to receive the funds, but they don’t need a Wise account. You can also use Wise to receive money in multiple currencies - but more on this later.
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Option 1: Use an online money transfer service
Online money transfer services let you arrange, pay for and send money nationally or worldwide.
For example, there’s Wise. This is a particularly useful option if your recipient has a bank account, but not in the currency you’re sending. They can sign up with Wise, get local bank details (in selected major currencies) and then receive money in the local currency.
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This gets round the need for banks to carry out the currency conversion, which often involves fees and poor exchange rates.
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Other money transfer services can also be helpful. If you’re sending money within the US, Walmart could be a handy option. It has an online money transfer service called Walmart2Walmart². This lets you order online or head into your local Walmart store to arrange a payment, then your recipient simply needs to head into their nearest Walmart to collect.
Pros and cons of online money transfer services
Pros:
- Usually fast, secure and convenient
- You can send to recipients in other countries
- You’ll have a choice of methods to fund the payment, including bank account, debit/credit card and sometimes cash.
Cons:
- Cash pickup isn’t available in all locations
- There are often transfer fees to pay
- If you’re sending internationally, you’re not likely to get the mid-market exchange rate - this can make the transfer more expensive for you.
Option 2: Send a money order
It may seem like an old-fashioned way to send money, but money orders are a really useful option in this particular situation.
A money order is a little like a pre-paid check, but without the need for a bank account. You simply need to buy one in the dollar amount you want to send and mail it to your recipient. They can then cash it to receive the money.
There are quite a few places to buy money orders in the US, including³:
- Banks and credit unions
- Post Office (USPS) branches
- Stores such as Walmart
- Agent locations for Western Union or MoneyGram - such as convenience stores, supermarkets, grocery stores and drug stores.
You can usually cash money orders at the locations above, as well as buying them.
Pros and cons of money orders
Pros:
- Reliable and secure, as no bank account information is shared
- There are lots of places to buy and cash money orders in the US
- Safer than sending cash by mail.
Cons:
- You’ll usually pay a fee to buy and send a money order
- Money orders are notoriously slow, as they depend on the speed of the mail service and the distance to be traveled.
Option 3: Use a mobile wallet
Mobile wallets offer a useful way for people without bank accounts to send and receive money. There are lots to choose from, with some of the most well-known being Apple Pay, Google Pay and Samsung Pay.
It’s a kind of digital wallet where card information is stored on an app on your phone. You can use the app to pay for things and send money, without the need to carry cards around with you. They’ve become enormously popular in lots of countries, including the US.
If the person you want to send money to doesn’t have a bank account, they might already be using a mobile wallet. This is because you can link credit cards to mobile wallets, as well as bank-issued debit cards. If you send money to the person’s mobile wallet, it’ll be added to their balance.
Pros and cons of mobile wallets
Pros:
- Usually free to download or use (although there may be fees for using linked credit cards)
- Transactions are very fast, if not instant
- Good security, as mobile wallets usually use encryption, biometric login and other security features.
Cons:
- Transfers between mobile wallets are usually only free if you both use the same mobile wallet - otherwise, fees may apply
- Foreign exchange fees may apply to international transfers
- Your recipient will need access to a smartphone, and be tech-savvy enough to use a mobile wallet.
Option 4: Use a money transfer app
These are similar to online money transfer services, but they’re usually aimed at people wanting to send money to each other within the US. They also tend to be solely app-based, rather than being available online.
There are lots of different apps to choose from, including Venmo, Facebook Pay, PayPal and Cash App.
These apps vary in how they work, but they generally only require an email address and/or phone number for your recipient. You’ll both need to download the app, then you can link a bank account, debit or credit card in order to fund the payment.
If you use an app like Venmo, your recipient doesn’t need a bank account to receive the funds. They can spend using Venmo, or order a pre-paid debit card for spending⁴.
It’s usually fee-free to transfer money if you both have an account, although there may be fees for funding payments with a credit card⁴.
Pros and cons of money transfer apps
Pros:
- Usually free to download
- Fee-free to transfer money between accounts (fees may apply in certain circ*mstances, such as funding payments with a credit card)
- Fast if not instant payments.
Cons:
- Your recipient will need access to a smartphone and be tech-savvy enough to download and use an app.
- You both need to have the same app, otherwise transfers won’t be free (if even possible).
Option 5: Send cash (but proceed with caution)
If none of the above options are suitable for your needs, there is one last thing you can try. This is to send cash through the mail.
For obvious reasons, though, this isn’t recommeded. It’s one of the least secure methods you can use, as there’s always a risk that the money will get lost or stolen in the mail. It could be intercepted by someone else, meaning that your recipient never receives it.
If you do choose this option, proceed with caution. Try the following to improve the chances that the money reaches the recipient safely:
- Use a paid tracking service so that you can confirm delivery
- Use a discreet envelope or packaging, which disguises its contents
- Consider buying insurance for your package, covering the amount of money you’ll be sending.
Pros and cons of mailing cash
Pros:
- Direct - no tech or third parties involved
- Low cost, unless you opt to buy tracking or insurance
Cons:
- Potentially very insecure, as packages can be lost, intercepted or stolen
- Slow.
After reading this guide, you should have a better idea of the options available for sending money to someone without a bank account. The good news is that there are quite a few different routes you can take, from modern tech-based solutions to old-fashioned methods like money orders.
Which is the best? You’ll need to compare based on the factors that matter to you, including speed, security and cost.
Mobile wallets are a great option, as they’re often fee-free and offer instant transfer. If you’re sending worldwide, a money transfer service is usually the best option - although it does come with fees. Money orders are easily accessible and safer than sending cash through the mail, but they’re slow and usually come with fees attached.
And remember that if you need to receive funds in a different currency to your bank account or send money with low and transparent fees¹, Wise is a convenient, money saving solution.
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Sources used for this article:
Sources checked on 19-Jan-2023.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
