The cost of currency exchange, among other issues, stands as a wall of Jecho hindering seamless and cost-effective currency exchange. Most times, the traditional methods such as banks and brokers charge a lot, thereby leaving the user with a meagre sum when the currency is finally exchanged.
Recognizing this, it became important to find an alternative to these traditional methods in order to make currency exchange cheap, seamless, and secure. Hence the advent of P2P payments.
What Is Peer-to-Peer Currency Exchange?
Peer-to-Peer currency exchange is a currency swap medium that allows you exchange money from one person to another through an online platform like peer-to-peer apps, websites, etc. There, individuals can find and safely exchange currency with individuals in other countries at much affordable costs.
In this article, you will learn more about peer-to-peer currency exchange, how it works, and why Kyshi is the toast of peer-to-peer currency exchange, among other things.
How Does Peer-to-Peer(P2P) Currency Exchange Work?
The process of Peer-to-Peer currency exchange is simple. Rather than exchanging money via the traditional models of banks and brokers, you can swap currency directly with those who need your currency.
As a person-to-person transfer platform, Kyshi allows you to create your offer at your own rates and send it to the marketplace, or accept an offer with a preferred rate. We then make a match, show a change in the ownership of funds, and remit through a simple domestic transfer.
The entire transaction happens and is controlled within our marketplace. You can easily send money to any person or account. The account could even be yours in another country.
For better understanding, let's cite this case study. Andrew wants to exchange one thousand pounds, (£1000), into Naira. Andrew connects with a number of people who are interested in swapping pounds for naira via a Peer to Peer currency exchange platform.
He either creates an offer at his exchange rate or accepts someone’s offer with an exchange rate he loves. After this, the currency exchange takes place and he is remitted with Naira and the other user gets pounds.
How To Choose The Best Peer-To-Peer(P2P) Currency Exchange Platform
Asides from conducting thorough research before deciding which P2P currency exchange platform to use, here are some of the things to look out for:
Look for a platform that does high volume—the more transactions, the more liquidity. This is essential for better rates, quick conversions, and smooth transfers.
Look out for the number of currencies the exchange offers along with the time it takes to carry out the transfers.
Check that the company exchanges your specific currencies.
Compare the exchange rates and fees of different companies.
Ensure that the company is registered with the authorized country agency and has all the necessary licenses.
Use a company that keeps customer money in segregated accounts versus common accounts. Segregation offers the consumer better protection if the company ever has financial difficulty.
Benefits Of Peer-to-Peer(P2P) Currency Exchange
1. Favourable Exchange Rates
Favourable exchange rates compared to what banks and brokers offer is one of the chief benefits of peer-to-peer currency exchange. As a user, you can select the best rates from Peer-to-Peer currency exchange platforms or set their rates and get currency swapped seamlessly.
2. Significant Cost-effectiveness
P2P currency exchange is significantly cost-effective. By getting around the bottleneck of banks and brokers, P2P currency exchange platforms provide currency exchange at much lower rates. The average saving rate on international transfers for P2P users compared to banks ranges between 75% to 90%. Naturally, the savings depend on how much banks charge, which in most cases hovers between 2% to 5%.
3. Convenience
Peer-to-Peer currency exchange is very convenient and easily accessible. Users can easily swap huge amounts of money without going through hassles. Similarly, these swaps can be done seamlessly and securely.
Select The Best Choice: Kyshi
When it comes to international money transfers as an African, you’ve already got a friend for a seamless P2P currency swap: Kyshi. At Kyshi, we focus on making it easy and affordable for you to swap, send, or receive money for business, holidays, or your loved ones.
When you transfer money with Kyshi, we ensure that your transaction is swift and secure. And yes, you can always contact our Customer Support team here.