6 Ways To Send Money to Someone Without a Bank Account

Do you know you can send money to someone who doesn’t have a bank account without any difficulties? If you didn’t already know, ask me how. 

Thanks to modern technology, there are more options for sending money. With fintech services, you can send and receive money using just a smartphone. This means more people can access financial services without a traditional bank.

In this article, I will discuss 6 ways to send money to someone without a bank account. Additionally, I will talk about tips to apply when sending money to the unbanked, as well as answer some common questions about this topic.

How To Send Money to Someone Without a Bank Account

As I mentioned earlier, there are several ways through which you can send money to someone who doesn’t have an account with any bank. You just have to pick the option that best suits both you and the recipient, and money will be sent and received easily. 

Below are 6 ways through which you can send money to someone without a bank account:

1. Gift cards
2. Money order
3. Online payment services
4. Cryptocurrency 
5. eWallets
6. Prepaid debit cards

1. Gift Cards

Gift cards are prepaid cards that are issued by stores and financial institutions, and they offer a unique way to send money. With a gift card, you can pay for goods or services at the store that issued the gift card. 

Additionally, for the ones issued by financial institutions e.g. Visa gift card, you can use it anywhere that payment method is accepted. That means you can use a Visa gift card anywhere Visa is accepted as a form of payment. 

You can buy gift cards to send to someone without a bank account on Nosh. Nosh is a gift card trading platform that offers a variety of gift cards in various denominations. Once you get the gift card code, all you have to do is forward it to the recipient. 

Also, you can buy Nosh gift codes and send them instead of gift cards. All the recipient has to do is open an account on Nosh and redeem the gift code. The amount will be added to their Nosh balance and the recipient can use it to pay for services on the platform. 

2. Money Order

Money orders are available at various locations like Walmart and CVS. They are similar to cheques except that you don’t need a bank. All you have to do is buy one with the amount you plan to send, sign it and mail it to the recipient who will exchange it for cash. 

This method is cost-effective, secure, and provides a clear paper trail. Additionally, you have the flexibility to cancel a money order if needed as long as the recipient hasn’t cashed it yet. 

3. Online Payment Services 

The fintech industry has brought about various online payment services like PayPal, Cash App, and Venmo. To be able to use the services of these fintech apps, all you need is a smartphone. 

These apps make it easy to send and receive money without a traditional bank. Recipients can easily sign up and may link a prepaid debit card for seamless transactions

4. Cryptocurrency 

Cryptocurrency is another way you can send money to someone without a bank account. Popular examples of cryptocurrency include Bitcoin, Ethereum, USD Tether, etc. Due to the popularity of cryptocurrency, some coins are now accepted as forms of payment. 

You can send money through cryptocurrency by sending crypto equal to the amount you want to send to the recipient’s address. All the recipient needs to receive payment is the public address of their crypto wallet. 

With cryptocurrency, transactions are secure and can be done directly between people. This makes it a straightforward way to send money without the traditional need for a bank.

5. eWallets

eWallets also called digital wallets are another way you can send money online to someone who doesn’t have a bank account. They function similarly to payment apps where you can just link your credit or debit card. Examples of eWallets are Apple Pay and Google Pay. 

Additionally, eWallets keep your payment info extra safe through something called tokenization. But remember, some digital wallets only work with certain devices. For example, you need an Apple device to use Apple Pay.

6. Prepaid Debit Cards

Prepaid debit cards serve as another tool for sending money to someone without a bank account. They are like regular debit cards except that they are not linked to any bank account. All you have to do is load money onto the card and send it to the recipient. 

Prepaid debit cards are easy to activate and are readily available at financial institutions and grocery stores. However, you should note that prepaid cards come with potential fees like sign-up fees, monthly fees, and reload fees.

Tips for Sending Money to Someone Without a Bank Account

You should ensure you make the most out of the situation when you’re sending money to someone who is unbanked. Here are tips for sending money to someone without a bank account:

1. Compare options: Before sending money, compare different methods to find the best fit for your needs. Consider factors like speed, cost, and security to make an informed decision.
2. Prioritize security: Always prioritize security when sending money, especially if it involves transactions abroad. Ensure that there are safety measures in place, allowing the money to be returned to you in case the recipient faces issues accessing it.
3. Verify recipient information: Confirm that the recipient’s details are accurate to avoid complications. Ensure that the person picking up the payment matches the information provided, as using another person’s name or a nickname might prevent them from receiving the funds.

Frequently Asked Questions About Sending Money to the Unbanked

1. Can money be sent without a bank account number?

Yes, you can send money without a bank account number using various methods like prepaid cards, gift cards, or certain mobile payment apps.

2. What app can I use to send money instantly?

Apps like Cash App, Venmo, or PayPal allow you to send money instantly to others using just your smartphone.

3. Can you use Cash App without a bank account?

Yes, you can use Cash App without a bank account. You can link a prepaid debit card or a credit card to it. Also, Cash App provides the Cash Card, a complimentary prepaid debit card that you can request directly from within the app.

Conclusion

There are alternative ways you can send money to someone without a bank account. From gift cards to online payment services, each method has its own advantages. By comparing options and considering factors like speed, cost, and security, you can choose the approach that best suits your needs.