If you’ve been sending money using Zelle, you already know it’s a top option. However, if you plan to send money to Canada using Zelle, you may encounter some difficulties. This is because Zelle doesn’t operate in Canada and is only available in the U.S.
You need to use one of the Zelle alternatives to send money to Canada. Fortunately, there are a number of options for sending money internationally.
This guide will discover why Zelle isn’t available in Canada and other Zelle alternatives for international money transfers.
What Is Zelle?
Similar to other mobile payment options, Zelle is a peer-to-peer payment service. It facilitates quick money transfers between you and your friends or family without any charges. With Zelle, you can quickly transfer money from your bank account to other bank accounts.
Why Is Zelle Not Available in Canada?
To use Zelle to send or receive money, both the sender’s and recipient’s bank accounts need to be in the US. You can use Zelle in Canada only if you are an American (having a US bank account). But you won’t be able to send money to a Canadian bank account.
Zelle cannot integrate with Canadian banks since foreign exchange is a complex market. It has many rules and industry standards that companies are bound to follow. On top of that, profit margins are pretty competitive and tight.
This is the reason that several mobile payment companies deny international transfers. Thus, these companies, including Zelle, save money, time, and stress. It’s not only Zelle that dodges international money transfers. Venmo and Square cash adopt the same trick. In contrast, the companies that allow international transfers also charge a whopping transfer fee to cover extra expenditures.
Will Zelle Be Coming to Canada?
It seems unlikely that Zelle will launch in Canada. But if you have an American bank account, you can utilize this money transfer service from Canada.
With such limitations, Zelle is unfeasible for most Canadians. Thus, they are bound to look for alternatives.
Best Zelle Alternatives to Send Funds to Canada
You can choose from various options if you are a Zelle user and want to send money internationally. Here are some of them.
Wise (Formerly TransferWise)
Wise is an international money transfer service with 16 offices globally and 10 million customers. This is the safest and most dependable option for Canadians to transfer funds internationally. Wise is quite transparent concerning fees and exchange rates. It is pretty simple to send money from the US to Canada using the same method. Wise is one of the most popular international money transfer companies with low fees and quick international transfers.
Wealthsimple Cash App
After Wise, the Wealthsimple cash app is an excellent alternative for making a quick peer-to-peer international transfer. You can quickly send or receive money with just a couple of swipes on the phone. Compared to Wise, Wealthsimple is quite a new service. Therefore, the company is continuously upgrading its promotions to invite new users.
If you reside in the USA and need to transfer money to someone within Canada, Wealthsimple is the reliable way concerning safety, transfer speed, and charges. Furthermore, with this app, the user’s information is encrypted with state-of-the-art technology alongside two-factor authentication.
To transfer money to Canada, you can rely on bank transfers. If you reside in the U.S., visit your local U.S. bank branch to make an international wire transfer. When initiating a wire transfer, you will need the recipient’s bank account details and bank address. You must also know the currency conversion rates to understand how much it will cost you. Note that a bank charges more than usual for an international transfer.
Even if it costs money to send money internationally, PayPal is still a competitor to Zelle in the United States and Canada. You can send money to people within Canada for free. However, it will charge transfer fees for international and business money transfers.
Frequently Asked Questions
1. What is the best way to send money to Canada?
The Wise and Wealthsimple cash apps are the most secure and time-efficient ways to transfer money to Canada. Both of these money transfer services offer low transfer fees and speedy transactions. You can also make international wire transfers through your local bank account.
2. Can I send money to Canada with PayPal?
Yes, PayPal can be a good option for transferring money to Canada. To do so, you must first log into your PayPal account and start a transfer process in Canadian dollars.
3. How can I transfer money from the USA to Canada?
There are several ways you can send money from the USA to Canada. Out of those, the most reliable and economical ways are the Wise and Wealthsimple cash apps. You can also opt for Interac e-transfers, as many banks and credit unions support them.
4. Is Venmo available for sending money to Canada?
Venmo doesn’t operate outside of the US. So you cannot send funds to Canada using Venmo. To use Venmo, both the sender and recipient must have US bank accounts.
5. Does Canada use Cash App?
Cash App doesn’t run in Canada. Cash App has the same restriction as Venmo and Zelle, i.e., you and your recipient must be residents of the US to send or receive funds. Simply put, you cannot send or receive payments if the recipient is in a different country.
Zelle may be a good option for receiving or transferring money. But you cannot send money to Canada from the US through it. Furthermore, Zelle doesn’t plan to expand its service to Canada anytime soon. Therefore, as discussed in this guide, you must look for alternatives.
Wise can be your best bet to transfer money with minimal fees and quick turnaround times. However, you can also choose a bank transfer if you have a large budget.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.