What are peer to peer international money transfers?
Peer-to-peer (P2P) transfers let you send money overseas using a platform that connects you directly with another person, rather than going through a bank or currency exchange. This method can offer more competitive rates, with the potential to get closer to the real exchange rate (mid-market rate), which is typically reserved for larger financial institutions.
How do peer to peer money transfers work?
In simple terms, P2P transfers work like other sharing platforms (think carpooling or P2P lending) where the middleman is removed. You’re not dealing with a bank that adds a margin to the exchange rate; instead, a P2P platform matches you with someone who wants to transfer money in the opposite direction.
For example, if you want to send money to the UK, the platform might match you with someone in the UK who wants to send money to Australia. The exchange happens directly between users.
It's important to check whether the platform supports the specific currencies you're transferring. Some peer-to-peer platforms may not process transfers in all currencies, or they may not have as many currency pairs available as larger banks or dedicated money transfer services.
In Australia, peer to peer transfers is still somewhat in its infancy, with only one large provider offering the service.
Wise is one of the most popular and trusted platforms for P2P international money transfers, offering transparent, low-cost services with no hidden fees. Instead of the traditional model where banks and currency exchange services charge high margins on exchange rates, Wise uses the mid-market rate — the rate you see on Google or XE — with a small, upfront fee.
How do peer to peer providers make a profit?
P2P platforms earn by charging a service fee, usually a percentage of the amount you’re transferring. For example, Wise charges fees starting from 0.4%. While these fees are generally low, they can add up for larger transfers.
Is transferring money through a peer to peer provider safe?
As peer to peer providers are fairly new to the foreign exchange landscape, you may be worried about whether it’s safe to trust them with your money. Ensure that any company you use is regulated by the Australian Securities and Investments Commission (ASIC), which requires financial providers to be transparent and treat customers fairly.
Transfer times
P2P transfers typically take 1–4 business days, similar to bank transfers, but the timing depends on the amount and destination country. The platform needs to find a match, which can sometimes take time.
Some platforms do offer a ‘best available rate’ option, but that could involve extra costs or a less favourable rate.
Pros and cons of P2P transfers
Here’s a quick overview to help you decide if P2P transfers are right for you:
| Pros | Cons |
| Competitive rates. You get closer to the mid-market rate, meaning better value for your money. | Fees on large transfers. The service fee is a percentage, so for larger sums, it may outweigh the savings from better rates. |
| No minimum transfer limits. You can transfer as little as $100, ideal for sending small amounts. | Uncertainty in rates. The rate you see isn’t guaranteed — by the time your transfer is processed (3-5 days), the rate could change. |
| Regulated by ASIC. Platforms like Wise operate under strict Australian financial regulations, providing peace of mind. | Waiting times. If a match isn’t available at the rate you want, you might have to wait for a better deal. |
Steps to transfer through a P2P provider
The process is simple and similar to other money transfer methods:
- Create an account on the P2P platform, providing details like the amount you’re transferring, currencies, and both your and the recipient’s bank details.
- Send funds to the platform’s account.
- The platform matches your transfer with someone who wants to send money in the opposite direction.
- Once a match is found, the platform transfers the funds directly to the recipient’s account.
Personal international money transfer comparisons on Mozo
I want to transfer
Today’s foreign exchange rates
- Excellent exchange rates, no transfer fees
- 24/7 transfers online, over the phone or through the TorFX app
- Personal account management and expert insights
$6,501 USD
IN PERSONn/a
BY PHONE$0
ONLINE$0$0.6501 USD
1-2 days
$200 minimum
- Send to 200+ countries and 100+ currencies globally, 48,000+ 5-star 'Excellent' ratings on TrustPilot
- Dedicated Australia-based client services team with personal account management for transfers over $20,000
- Send fees are charged on smaller amount transfers, additional fees are charged on debit and credit card payment methods.
$6,484 USD
- IN PERSONn/a
BY PHONEn/aONLINE$5 $0.6488 USD
1-3 days
none
- Fee Free transfers
- Talk to a human, 24/7. Sharp Rates and Fast and Secure transfers.
- Australian owned, ASX listed and Official Foreign Exchange Provider of the NHL
$6,484 USD
- IN PERSONn/aBY PHONE$0ONLINE$0
$0.6484 USD
1-2 days
$250 minimum
$500 monthly minimum for regular transfers
* The exchange rates offered by each provider are indicative exchange rates that have either been supplied by each provider or gathered by Mozo. Exchange rates fluctuate constantly and as a consequence the exchange rates listed here may vary to the actual exchange rate you are quoted by a provider. Please ensure you confirm the actual exchange rate with the relevant provider prior to conducting any transaction. These exchange rates are updated every hour.
^See information about the Mozo Experts Choice International Money Transfer Awards
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