How to manage cross-border payments when moving abroad

As exciting as moving abroad is, your excitement can be drowned in worries. Top of mind for most people is how to manage cross-border payments when moving abroad. You are concerned about how quickly you can open a bank account and getting the best offers on transactions and exchange rates.

With the right tips and tricks, you can manage cross-border payments without breaking a sweat. This article explores the challenges of cross-border payments and provides steps you can take to simplify them.

Also read: How to find a job and validate your degree abroad

Challenges with cross-border payments when moving abroad

Some of the most common challenges people face when they relocate include:

• Cumbersome paperwork: Opening an account in many banks requires a lot of paperwork, which may not be readily available. This makes the process frustratingly slow.
• High fees: International transfers with traditional banks are usually more expensive.
• Unfavourable exchange rate: Many traditional banks and currency exchange have hidden markups that can eat into your funds.
• Slow processing times: Transfers can take several days, especially when using SWIFT.
• Regulatory restrictions: Certain countries have strict currency controls that limit how much you can send or receive.

How to manage cross-border payments when moving abroad

Here is how you can manage international payments abroad without hassles.

1. Plan ahead

Having a good financial plan before your move prepares you for a new financial system. Learn about the country’s banking regulations and the best local banks to open an account. Get familiar with the requirements and start collating your documents. Review the bank charges and exchange rates to ensure they are favourable.

2. Notify your existing bank

Let your existing bank know about your move abroad to prevent any issues with your account being flagged for unusual activity and to ensure you receive important communications.

3. Open a local account early

As soon as you arrive in the country, open a local bank account for your everyday transactions. For immigrants, the process typically involves providing a visa, proof of residence, and, in some cases, employment details.

4. Choose your option of global payments

While traditional banks can be great for local transactions, building credit, and managing utilities, relying on them for cross-border payments isn’t cost-effective. Instead, explore alternatives such as:

• Online transfer platforms (e.g., Grey, Wise, Remitly) that offer transparent rates and faster transfers.
• Remittance services, such as Western Union or MoneyGram, are often used for urgent transfers, although they may come at a higher cost.
• Crypto-based transfers (e.g., USDC, USDT) for freelancers and remote workers seeking speed and low fees, though this may require technical knowledge and compliance with regulations. Grey also supports USDC payments.

5. Monitor exchange rates

Currency fluctuations can significantly impact the amount of money that reaches the recipient. Use rate alert tools and monitor live exchange rates on platforms like Grey and XE to make transactions at the most favourable times.

6. Diversify your accounts

Consider maintaining a global account that supports multiple currencies. Platforms like Grey and Wise enable you to hold, convert, and withdraw funds in various currencies, thereby reducing conversion costs.

Also read: Receiving international freelance payments: Wise vs Grey vs Payoneer

Efficient cross-border payments with Grey

With Grey, managing cross-border payments when relocating is much less stressful. You can open multi-currency accounts in USD, GBP, and EUR, making it easy to send and receive money worldwide. If you need to convert currencies, Grey offers competitive exchange rates and low, transparent fees. Here’s how to get started with Grey.

• Sign up via Grey’s website or download the mobile app.
• Complete your Know Your Customer (KYC) verification by adding your personal information and uploading your photograph, proof of residence, and a valid ID.
• Once verified, request for your USD, GBP, and EUR bank accounts, which will be provided instantly.
• Fund your account to start sending money globally.

With Grey, you enjoy seamless cross-border payments when moving abroad. Get started today!

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