Back in the day, when consumers needed to wire money to overseas people or bank accounts, they didn’t have many options. But now, with the information super highway we call the internet, there are so many more doors open, with many businesses offering their services in just minutes.
But don’t be mistaken; we are hardly the first generation to look for new ways to send money. People have been wiring money for ages, and the most dated dates all the way back to biblical times. It is called many different things but it is commonly referred to as the hawala or hundi system in the Middle East, aval in France and avallo in Italian law. No matter how you describe it, the idea is the same; it is a debt transfer from one person to another. And although it was illegal in Roman law, the practice went on until it was legalized.
The origins of Hawala are derived a specific form of Islamic law, with many Muslim historians citing hawala in their works portraying Islamic jurisprudence. The system itself would influence both civil and common law in societies all over the world.
In the beginning of the industrial revolution, telegraph lines were used to transfer money, and in the 1970s the SWIFT system was created by international banks as one of the first methods for people to export money from one bank account to another.
Now look forward to the early 21st century, where it’s alarming the hawala system is still being used around the globe. Between global banking and the world wide web, people and businesses are linking together in ways never thought possible, offering consumers to turn their computer into a tool for transferring money to people, businesses or banks. And not only that, soon cell phones will offer even more ways to transfer.
Since so many people have exchanged their home phones for mobile phones, wireless manufacturers are looking for ways to make purchases or complete transfers from those cell phones. The iPhone already empowers people to use their phone as a credit card.
With the growing popularity of the smart phone, we now have tons of ways to send funds to overseas people or accounts by accessing bank accounts or transfer services right from our mobile phones.
To connect global economies more closely , credit card companies have begun offering pre-paid debit cards that are replenished online. This allows someone in the U.S. to send money overseas by adding money from their account or card.
E-commerce is surely making a splash in the global community and soon enough people needing to wire money will have so many more options than they could have ever imagined.
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