How To Transfer Money Using Email


I grew up in an age were using cheques to send and receive money was the norm.

Today in the digital age cheques have almost become extinct.

Most banks today offer online banking and will allow you to transfer money directly from one account to another.

However with the almost universal use of smart phones other transfer methods have become popular that don’t directly involve a bank.

Back in 1998 PayPal introduced a money transfer service that used email addresses.

Instead of sending money to a back account you simply sent it to an email address.

Although it was introduced a long time ago PayPal  has mainly been used for online shopping, especially by small e-commerce sites and Ebay.

Recently both Google (Google Wallet) and Apple (Apple Pay)  have introduced their own money transfer and  payment services.

All of these new methods use either an email address or phone number rather than a bank account number to make the transfer.

How Email Money Transfer Works

In order to transfer money both the sender and receiver will require an account on the transfer system.

Using PayPal as an example. The the Sender will require a PayPal account, and so will the receiver.

The sender then logs into his PayPal account and sends the money to the email address of the recipient.

The email address of the recipient is linked to the PayPal account of the recipient, and the money is deposited into the recipients account, and debited from the senders account.

Here are the actual Instructions provided by PayPal


Getting Money In and Out of the Money Transfer Provider

PayPal like other money transfer providers provide a means of getting money from their system to a standard bank account.

  • Linked Bank Account
  • Debit Card
  • Credit Card

Here are the PayPal Instructions for adding money and here are the instructions for withdrawing money.

Mobile Payment Apps

Although PayPal payments are still are done using the web and a web browser most modern systems use a mobile payment App. (e.g. Google Wallet/Android Pay)

Mobile Payment Apps make it very simple to send and receive payments from anywhere with an Internet Connection.

Payment Apps are provided by the Company providing the money transfer service

Common Problems

1- Most money transfer system require the sender and receiver use the same transfer system.

That is you can only transfer money using Google Wallet to other Google Wallet users.

2- Usually restricted to transferring money in the same currency and country. PayPal are an exception.

3. Some only work if both sender and receiver have accounts with the same bank.

4- Some are Country Restricted i.e. USA only

Advantages of Email Payment Systems

1- Normal bank transfer requires that you know the name and Bank of the recipient before you can transfer money to them.

However with email and phone transfer all you need to know is the email address, or phone number of the recipient.

2- It is More secure as you don’t need to give way your bank account number

3- Fast- Payment is almost instantaneous.

4- Very easy to do.


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