Top International Payment Methods for Canadians

In the present global economy, Canadians are generally more involved in international trade, remote work, freelancing, and e-commerce. For that reason, whether you are a business owner, a freelancer or an individual just sending some money abroad, it is key that you find the best international payment methods that minimizes your fees, is affordable, quick, and secure. While there are many available options, knowing the pros and cons of each method can allow Canadians to make the best decisions with their money.

Why Choosing the Right International Payment Methods Matters

Canadians deal with expenses, fluctuating exchange rates, and a relatively slow settlement time for cross-border payments and sending money abroad. When Canada receives an estimated one million international transactions every day, your choice of international payment methods can help ensure that you migrate your money as securely and timely as possible without substantially extra costs.   

The right answer should strike the right balance between timely delivery, security, accessibility, and cost. Then there are even more options; there are far more money transfer tools and platforms that are responding to the increasing demand for swift global money transfers. 

Bank Wire Transfers

Bank wire transfers are considered one of the more conventional and common international payment methods. Major Canadian banks including RBC, TD, and Scotiabank, facilitate wire transfers and they have always been a secure way to make larger cross border payments. 

At the same time, wire transfers can have associated fees, finding the best exchange rate, transfer speeds, and whether there are intermediary banks involved. Banks generally do not offer the best exchange rates compared to digital methods. 

Online Payment Platforms

Digital platforms like PayPal, Wise (previously TransferWise) and Payoneer transformed the way money is transferred internationally. These platforms give Canadians the ability to send and receive money internationally affordably, with competitive exchange rates, and which are often better than through a bank and traditional means. 

For example, Wise is known for their spreads and low fees, while Payoneer is popular with freelancers working international jobs and businesses making international sales; both of which offer options for fast cross-border payments, multicurrency accounts. These platforms stand out as the preferred method of international payments for modern users.

Cryptocurrency Payments

Cryptocurrencies, an alternative way of making payments internationally, are emerging as technologies advance with blockchain, and cryptocurrencies like Bitcoin and Ethereum are on the forefront of such payment approaches. Canadians wanting quick, low-cost international money transfers might just consider crypto payments, especially if we are talking about peer-to-peer transfers.

Despite its anonymity and speed, crypto carries risks like volatility and lack of regulatory scrutiny and risk, but it might have little application outside of tech-savvy individuals and businesses looking for cross-border payment alternatives.    

International Bank Drafts and Money Orders

While arguably a bit antiquated, international bank drafts and money orders are still used by some Canadians to make cross-border payments. They are paper-based methods of making payments that are generally safe, but can take a long time to clear, and require paper handling.

They are fine for users who do not have access to a digital payment system, but for most users, they are no longer the most efficient ways to make international payments today.

Foreign Currency Accounts

For Canadian companies that often deal with global money transfers, it could be advantageous to have a foreign currency account. A foreign currency account allows you to hold and send money in foreign currency which reduces the need to frequently convert currencies.

This option also provides Canadian businesses with better management of cross-border payments, avoidance of currency loss, and cash flow improvements. Although there may be some paperwork and fees to set up these accounts, they are more likely to save you money and improve your savings over time.

Mobile Payment Apps

Services like Revolut and Remitly are gaining traction with Canadians making smaller global money transfers. As mobile-first solutions, they are convenient to use, generally provide tracking in real-time, and usually offer better exchange rates than the banks. 

They also include instant notifications and budgeting tools, making them solid options for international payments of money for young people and families sending transfers to friends and family abroad.

What to Look for in Cross-Border Payment Solutions

When selecting a provider for cross-border payments, Canadians should consider:

• Transfer Speed: How fast will the money arrive?
  

• Fees: Are there hidden costs or high service charges?
  

• Exchange Rates: Are they competitive?
  

• Security: Is the platform regulated and secure?
  

• Convenience: Does it integrate with your bank or accounting software?
  
  

The best international payment methods will strike a balance between these factors, offering a smooth and transparent experience for both senders and recipients.

Conclusion

I understand that comparing global money transfer options can be complicated, but it doesn't have to be. When Canadians choose the best international payment methods, they can be confident their cross-border payments will be timely, affordable, and secure.

At SafeDeposit, we are experts in helping individuals and businesses in Canada find safe, fast and low-cost money transfer solutions. Whether that’s a one time global money transfer or a recurring cross-border payment, SafeDeposit can help find solutions to your international payments. Make international payments simple, transparent and carefree with SafeDeposit.