What to know about using apps to transfer money from different banks

This guide breaks down using apps to transfer money from different banks, and things to keep in mind when choosing one to use.

How do apps that transfer money between banks work?

The process for transferring money between banks can vary, depending on the app.

In many cases, the first step is to transfer money from an external bank account into the app’s wallet. After someone adds to their balance and the money becomes available in the app, they can then transfer some or all of that money to another bank. With PayPal, you can also link a funding instrument to your account and transfer money to other PayPal accounts easily.

These apps can be independent of traditional banks. And many have a user-friendly and convenient design, allowing users to transfer funds in seconds.

Potential benefits of apps to transfer money from different banks

Apps to transfer money between banks may offer many benefits, making them a popular choice for Australians. Here are some of the potential advantages of using a money transfer app:

Easy to use

No one wants to get lost in a complicated process while trying to transfer money. Many money transfer apps have intuitive features that make transferring money fairly easy. They can also save people a visit to their bank or nearest ATM to transfer funds.

When people want to transfer money to their mates or family, these apps can help them avoid having to hand over cash to someone.

Multiple currencies

Multiple currencies may be supported depending on the app, giving people a way to transfer funds between bank accounts in different countries. Fees and additional costs may apply, so it’s important to understand the terms and conditions.

These foreign exchange services allow users to transfer funds in dollars and have that amount converted to another currency at the time of transfer. The app will typically use the current exchange rate to calculate the conversion and then deduct any fees or charges associated with the transfer.

Learn about managing your money with PayPal here.