Is a digital transfer safe?

Digital transfers sent through a licensed, regulated provider are generally safe, and providers are required to follow consumer protection rules, including disclosing fees and exchange rates and maintaining multiple levels of security around personal information. What makes Remitly specifically safe to use is covered in more depth separately, but choosing any provider that's transparent about its licensing and protections is worth doing before sending.

Does a digital transfer mean my recipient needs a bank account?

No. A digital transfer can be delivered in several ways depending on what's available in the recipient's location, including a cash pickup at an agent location, a mobile wallet, or in some corridors, home delivery. Bank deposit is simply one of several delivery options.

How is a digital transfer different from a bank transfer?

A bank transfer specifically moves money between bank accounts, while a digital transfer is a broader term covering any electronically initiated transfer, which may ultimately be delivered as a bank deposit, cash pickup, or mobile wallet credit. A bank transfer is one type of digital transfer, not a separate category.

How long does a digital transfer take?

Timing depends on the provider, the corridor, and the delivery method chosen, and can range from a short window for some mobile wallet deliveries to a few business days for a bank deposit that has to clear through the receiving bank's own systems. The cutoff time for a specific transfer also affects when processing actually begins. Checking the estimated delivery time shown before confirming gives a clearer picture for a specific transfer.

Does a digital transfer cost more than sending money for cash pickup?

Not necessarily, and it can sometimes cost less. Cost depends on the provider, the amount, the corridor, and the funding and delivery methods chosen, and it typically includes both any transaction fee and the exchange rate applied during conversion. Understanding how international transfer fees work helps in reviewing the full cost breakdown before confirming, which clarifies what a transfer will actually cost and what a recipient will receive.

Back to Glossary

What is a digital transfer? How it works

Key takeaways
- A digital transfer moves money electronically, with no cash or paper check changing hands.
- It's initiated and tracked online or through an app, from start to delivery.
- Digital transfers are now a common way to send money internationally.
- Understanding what a digital transfer is helps first-time senders feel confident about where their money actually goes.
- A digital transfer can still be delivered by cash pickup, a bank deposit, or a mobile wallet credit, depending on the delivery method selected.

A digital transfer moves money electronically: no cash, no paper, no physical movement. Here's how it works and why many people now use it to send money internationally.

What is a digital transfer?

A digital transfer is a method of sending money electronically from one party to another, initiated and processed online or through a mobile app rather than by using physical cash or a paper check. The money moves through electronic banking and payment networks, and the entire process, from initiating the transfer to confirming delivery, typically happens digitally. This is different from a transaction where a sender provides physical cash to an agent in person, even if that agent then processes the transfer electronically on the back end, since the term generally describes the sender's own experience of initiating and funding the transfer.

Why digital transfers matter for sending money internationally

For someone new to sending money internationally, understanding what a digital transfer actually is, and how it differs from providing physical cash to fund a transfer, builds real confidence in the process:

It can be tracked. Most digital transfers let a sender see the status of their money from submission to delivery.
It doesn't require physical proximity. A sender doesn't need to be near a recipient, or even in the same country, for the transfer to work.
It can still end in cash. A digital transfer can be delivered as a cash pickup, a bank deposit, or a mobile wallet⁠(opens in new window) credit, depending on the delivery method the sender selects for the recipient.

Digital transfers and international money transfers

Digital transfers are widely used by money transfer providers to move money across borders, and understanding this removes some of the mystery for first-time senders. When a transfer to a recipient in the Philippines⁠(opens in new window) is initiated, for example, the money moves electronically through the provider's platform and is delivered according to whichever method the sender selects, whether that's a bank deposit, a mobile wallet, or a cash pickup location. Delivery options vary depending upon the recipient location, so confirming what's available for a specific corridor is worth doing before choosing a delivery method.

It's worth knowing that digital transfers sent internationally aren't subject to certain policies that apply specifically to cash-based transactions. A new federal excise tax on remittance transfers took effect January 1, 2026, under IRC Section 4475⁠(opens in new window), generally applying a 1% tax to transfers funded with cash, a money order, a cashier's check, or a similar physical instrument. Transfers funded from a bank account or with a U.S.-issued debit or credit card, the way a digital transfer is typically funded, are generally exempt under the statute as currently in effect, though the underlying regulations are still being finalized and are subject to change. This section describes current federal tax law generally and is not tax advice; confirm current guidance and applicability before publishing or relying on it. The distinction the law draws is about how a transfer is funded, not whether it's labeled "digital" in a general sense, so confirming the specific funding method for any given transfer is what actually determines whether the tax applies.

The security layers behind a typical digital transfer

Send money with multiple levels of security designed to keep you protected, even though the process feels simple from the sender's perspective. Multiple levels of security protect financial and personal information as it travels between a device and the provider's systems. Identity verification, required of all licensed money transfer providers, confirms that both the sender and, in many cases, the recipient are who they claim to be, helping prevent the service from being used for fraud or illicit purposes. Behind the scenes, the provider also runs compliance checks against various regulatory watchlists, an additional safeguard that, while sometimes adding a small amount of processing time, exists specifically to protect the broader system and its users.

Why digital transfers have become common among senders

The shift toward digital transfers reflects a few converging advantages: the ability to initiate a transfer from anywhere with an internet connection, rather than needing to visit a physical location; more transparent, upfront visibility into fees and exchange rates before committing to sending; and the ability to track a transfer's status as it moves, rather than simply waiting and hoping it arrives. For senders who grew up with less digital infrastructure available, or who are simply more comfortable with an in-person process, this shift can take some adjustment, but the underlying convenience and transparency benefits generally hold true in most sending situations.

Common questions about digital transfers

Is a digital transfer safe?

Digital transfers sent through a licensed, regulated provider are generally safe, and providers are required to follow consumer protection rules, including disclosing fees and exchange rates and maintaining multiple levels of security around personal information. What makes Remitly specifically safe to use⁠(opens in new window) is covered in more depth separately, but choosing any provider that's transparent about its licensing and protections is worth doing before sending.
Does a digital transfer mean my recipient needs a bank account?

No. A digital transfer can be delivered in several ways depending on what's available in the recipient's location, including a cash pickup at an agent location, a mobile wallet, or in some corridors, home delivery. Bank deposit is simply one of several delivery options.
How is a digital transfer different from a bank transfer?

A bank transfer specifically moves money between bank accounts, while a digital transfer is a broader term covering any electronically initiated transfer, which may ultimately be delivered as a bank deposit, cash pickup, or mobile wallet credit. A bank transfer is one type of digital transfer, not a separate category.
How long does a digital transfer take?

Timing depends on the provider, the corridor, and the delivery method chosen, and can range from a short window for some mobile wallet deliveries to a few business days for a bank deposit that has to clear through the receiving bank's own systems. The cutoff time for a specific transfer also affects when processing actually begins. Checking the estimated delivery time shown before confirming gives a clearer picture for a specific transfer.
Does a digital transfer cost more than sending money for cash pickup?

Not necessarily, and it can sometimes cost less. Cost depends on the provider, the amount, the corridor, and the funding and delivery methods chosen, and it typically includes both any transaction fee and the exchange rate applied during conversion. Understanding how international transfer fees work⁠(opens in new window) helps in reviewing the full cost breakdown before confirming, which clarifies what a transfer will actually cost and what a recipient will receive.

In Summary

A digital transfer is simply money moved electronically, without cash or paper changing hands, and it's a common way people send money internationally today. Understanding this helps first-time senders trust the process, even when they can't see the money physically moving. Send money with Remitly to see the delivery estimate and total cost, and track your transfer every step of the way.

Transfer speed is an estimate depending on payment and delivery method, transaction review, and system availability. Fees and exchange rates vary by amount, destination, and delivery method, and are subject to change.

This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant, or otherwise guarantee that the content is accurate, complete, or up to date.