The Benefits of Using Gift Cards to Send Money Abroad

Traditional methods of sending money abroad, such as international bank transfers or using services like Western Union and MoneyGram, have long been the standard. While these options are reliable, they come with several downsides: high transaction fees, slow delivery times, and a heavy dependency on banking infrastructure. Benefits of gift cards to send money abroad are now gaining attention as a modern alternative, offering greater flexibility, speed, and accessibility. Furthermore, the sender and recipient often need access to formal banking systems or identification documentation.

These barriers can be especially limiting for people in remote or underserved regions. As the digital world evolves, so do the ways we can transfer money globally. One such modern and accessible option is gift cards, a growing trend that offers numerous advantages for both senders and recipients.

How Gift Cards Work for Sending Money Abroad

Sending money abroad using gift cards is more straightforward than it seems. A sender chooses a reliable platform or retailer, selects a digital or physical gift card, and sends it via email or text. Popular platforms like Amazon, Visa, and other fintech apps facilitate international gifting. The recipient receives a code or link, which they can use for online or in-store purchases.

Some cards, such as prepaid Visa or MasterCard, are universally accepted and function like debit cards. Others are region-specific and accepted at select retailers. This method avoids complex international banking processes and offers a straightforward alternative to sending money overseas.

Step-by-Step Guide on Sending Money with Gift Cards

To send money abroad using gift cards:

• Choose a trusted digital platform or e-gift card retailer.
• Select the card type, prepaid (Visa/MasterCard) or a region-specific store card (like Amazon or Flipkart).
• Specify the amount you wish to load onto the card.
• Enter the recipient’s email address or phone number for delivery.

After completing the purchase, the recipient receives a code instantly, which they can use for purchases or services. Many platforms offer tracking and delivery confirmation features for added peace of mind. This entire process is digital, efficient, and takes only a few minutes, making it ideal for urgent remittances.

An Overview of the Gift Card Types Used for This Purpose

• Two main types of gift cards are used for international money transfers: prepaid cards and retailer-specific cards.
• Prepaid cards like Visa or MasterCard gift cards are globally accepted and act like debit cards, allowing recipients to shop online or in stores.
• Retailer-specific cards, such as Amazon for the U.S., are limited to purchases within those platforms but can be very convenient in regions where such retailers are dominant.

The choice depends on the recipient’s location, spending habits, and the availability of card redemption in their area. Digital versions of both types offer added convenience and faster delivery.

Read related blogs: Why Gift Cards are Revolutionizing International Money Transfers

Key Benefits of Using Gift Cards to Send Money Abroad

Gift cards are becoming increasingly popular when sending money abroad due to their cost-effectiveness, speed, and ease of use. They offer a practical alternative to traditional remittance methods, especially for small or frequent transfers.

1. Zero Transfer Fees

One major advantage of sending money through gift cards is the elimination of transfer fees. Traditional remittance services, such as banks or money transfer platforms, charge hefty fees, especially for smaller amounts. These costs can quickly add up, reducing the actual amount the recipient receives.

In contrast, most gift card purchases, particularly digital cards, do not involve sending fees. This makes gift cards an economical alternative, especially for those making frequent or low-value transfers. They provide a budget-friendly option that ensures the full value reaches the recipient without unnecessary deductions or hidden charges.

2. Instant or Fast Transfers

Gift cards, particularly digital ones, can be sent and received almost instantly. It is a massive advantage over traditional methods, which may take several hours or days for international transactions to clear. Platforms offering e-gift cards deliver them via email or SMS within minutes, making them ideal for emergencies or last-minute gifts.

With the rise of mobile wallets and digital platforms, recipients can instantly redeem and use the value. The speed and efficiency of gift card transfers eliminate the need to wait in lines, fill out paperwork, or endure banking delays.

3. Accessibility and Convenience

Gift cards offer exceptional accessibility for individuals who may not have bank accounts or access to formal financial services. Unlike wire transfers or PayPal accounts, no banking information is required. It is especially beneficial in countries with large unbanked populations or recipients in remote areas.

All that is needed is an internet connection and a valid email or phone number. Gift cards are also easy to use. There’s no need for lengthy forms, ID verification, or additional fees. They can be redeemed online or in-store, adding a layer of convenience for recipients who may not have access to conventional financial channels.

4. Security and Privacy

Sending money via gift cards offers enhanced security and privacy. Traditional transfers often require sensitive banking or identification details, increasing the risk of data breaches or fraud. On the other hand, gift cards work using codes or links and require no personal financial data.

It reduces exposure to cyber threats and identity theft. Additionally, many digital platforms use encryption and tracking to ensure the safe delivery of gift cards. For privacy-conscious users, sending and receiving money anonymously using gift cards is a significant benefit that adds peace of mind.

5. Flexibility with Redemption

Gift cards offer unmatched flexibility regarding how the funds can be used. Depending on the card type, recipients can use them to shop online, make in-store purchases, or, in some cases, convert them into local currency via peer-to-peer exchange services. For example, an Amazon card opens access to millions of items in various countries. This flexibility allows recipients to meet their needs, whether essential shopping, bill payments, or saving the amount for future use.

Read related blogs: How to Send Money Internationally Using Gift Cards

How Gift Cards Provide a Solution for the Unbanked

Globally, over a billion people remain unbanked, meaning they lack access to traditional financial institutions. Gift cards present an empowering solution for this population. Since no bank account is needed, senders can transfer value across borders directly to recipients otherwise excluded from the global financial system.

This method fosters greater financial inclusion and independence for underbanked individuals. With mobile penetration even in rural areas, digital gift cards allow recipients to participate in e-commerce, make necessary purchases, and access services, affordably bridging the gap between the financially included and the excluded.

Using Locally Accepted Gift Cards for International Transfers

Sending region-specific gift cards ensures recipients can easily use them in local markets. For example, Flipkart cards are ideal for recipients in India, while Walmart or Target cards suit U.S.-based individuals. These locally accepted cards offer convenience and assurance that the card’s value won’t go unused. They’re also more likely to be accepted without issues like foreign exchange limitations or redemption barriers.

When choosing a gift card for international use, it is crucial to select one that matches the recipient’s geography and spending habits. Doing so enhances usability and ensures the recipient a seamless money transfer experience.

Common Challenges of Sending Money with Gift Cards

Despite their benefits, sending money using gift cards is not without challenges. One major limitation is redemption issues. Some cards may not be accepted outside certain regions or specific stores. Currency conversion or exchange rate differences can also affect the actual value received.

Depending on the provider, some prepaid cards might include activation or transaction fees. In cases where a recipient cannot use the gift card in their local currency or lacks access to compatible retailers, the card’s value may be diminished. Understanding these limitations and choosing reputable providers can help mitigate most of these issues.

Alternative Methods for Sending Money Abroad

Other popular methods of sending money abroad include PayPal, Wise (formerly TransferWise), bank transfers, and Western Union. Each of these has its pros and cons. Bank transfers are secure but often slow and costly. PayPal is fast but requires both parties to have accounts, and fees can be incurred.

Wise offers competitive exchange rates and lower costs, but still needs banking access. In contrast, gift cards provide a fee-free, fast, and accessible solution, especially for recipients without bank accounts. While imperfect, gift cards are convenient and straightforward in many everyday use cases.

Conclusion

Gift cards offer a powerful, modern alternative for sending money abroad. With benefits like zero transfer fees, instant delivery, widespread accessibility, and enhanced privacy, they address the everyday challenges of traditional remittance methods. The unbanked provides critical access to funds without requiring a bank account. 

When chosen wisely, gift cards can be a reliable and flexible solution for international money transfers. As global commerce and connectivity expand, gift cards represent a low-cost, secure, and convenient way to support loved ones or conduct business across borders.

Beem’s Send Now, Pay Later™ transforms the online money transfer experience with its instant delivery and recipient-first features. Whether it’s a financial emergency or a thoughtful gift, you can rely on Beem to deliver funds immediately. No bank account? No problem. Beem empowers everyone with access to digital remittance tools, regardless of their banking status.

FAQs: Benefits of Gift Cards to Send Money Abroad