May 15, 2024 Travel Finance Int'l payments

Sending money from Canada in China: a how-to guide

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Tolu osho

May 15, 2024

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‍In this article, we’ll talk about:

  1. Best ways to send money to China from Canada
  2. What to consider when sending money to China
  3. Chinese currencies: The Difference Between Yuan (CNY) and Renmibi (RMB)
  4. 4 ways to send money to China
  5. How to send money to China from Canada with Pesa

You live in Canada but need to send money to friends, family or even business partners in China? There are a few things to consider: affordability, transfer limit, transfer method, and transfer speed.

In this guide, we’ll give you some things to consider when sending money to China, explain the different Chinese currency and ways to send money to China seamlessly and safely.

This includes letting you in on Pesa offerings - send money to anyone in China for free whenever you need to. But first, let's get into the best ways to send money to China from Canada.

Send money to China with Pesa - no delays or hidden charges.

Best Ways to Send Money to China from Canada

When looking to send money to China, there are several reliable methods at your disposal:

  • Money Transfer Apps: Apps like Pesa provide a user-friendly interface and swift transactions. They are becoming a popular choice due to their convenience and cost efficiency.
  • Bank Transfers: Many Canadian banks offer international money transfer services directly to Chinese banks. However, this might involve higher fees and longer transfer times.
  • Online Money Transfer Services: These platforms often provide quicker transactions and lower money transfer fees than traditional banks. They also offer competitive exchange rates.
  • Cash Pickup: Some providers allow cash pickup at designated locations in China. This option is suitable if your recipient prefers receiving cash in person.
  • Mobile Wallets: Mobile payment platforms like Alipay and WeChat Pay are popular in China. If your recipient uses these services, consider transferring funds directly to their mobile wallet.
  • Home Delivery: Some services offer home delivery options, where the recipient receives the money at their doorstep.

What to Consider When Sending Money to China

Before initiating a transfer, consider the following:

  • Exchange Rates: Monitoring the CAD to YEN exchange rate can help maximize the value of the transfer.
  • Service Fees: Compare fees across different services to find the most cost-effective option. Or simply create your Pesa account and send money to China for free.
  • Transfer Speed: Depending on the urgency of your transfer, check how long it will take for the funds to reach the recipient.
  • Recipient’s Convenience: Ensure the receiving method is convenient for your recipient, whether it is a bank deposit, cash pickup, or mobile wallet credit.

Chinese Currencies: The Difference Between Yuan (CNY) and Renminbi (RMB)

Understanding the local currency is crucial when sending money to China. The terms Yuan (CNY) and Renminbi (RMB) are often used interchangeably but have distinct meanings. Renminbi is the official name of the currency, while Yuan refers to the unit. In the context of international money transfers, CNY is commonly used.

4 Ways to Send Money to China

Bank or Wire Transfers

Bank or wire transfers remain a preferred method for businesses to manage global payments, leveraging their widespread acceptance and proven reliability.

Most major banks in China, along with those in other countries, use the SWIFT code system to facilitate secure international transfers between bank accounts.

Essential Details About Bank/Wire Transfers

  • Transfer Fees: Typically range from USD 35-45, plus additional fees for currency conversion.
  • Foreign Exchange Rate: This varies based on the bank or financial institution involved in the transfer.
  • Setup Difficulty: Generally low, making it a straightforward option for most users.
  • Transfer Speed: Transactions usually complete within 1 to 4 days.

PayPal as an E-commerce Payment Gateway

PayPal is a widely-used e-commerce payment gateway that securely facilitates fund transfers, allowing users to link their bank accounts or cards for various transactions like online purchases. In 2019, PayPal expanded into China by acquiring a majority stake in GoPay, becoming the first foreign platform to offer online payment services there. Although direct transfers to Mainland China PayPal accounts are not supported, payments can still be made to an associated email or via PayPal.Me.

Key Details About Using PayPal

  • Transfer Fees: For personal accounts, there is a fee of 5% plus a 3% currency conversion fee. Business accounts incur a fee of 2.99% plus a 4% currency conversion fee.
  • Transaction Limit: Non-verified accounts have a limit of USD 4,000 per transaction, while verified accounts can send up to USD 10,000 per transaction.
  • Foreign Exchange Rate: Rates are derived from a wholesale rate quote, with an additional percentage fee.
  • Speed: Transactions are typically processed quickly.

Wise (Formerly TransferWise)

Wise, formerly TransferWise, is a UK-based financial service that enables global money transfers at real exchange rates with low fees. It supports personal and business accounts for managing and transferring money in over 40 currencies. For large transactions to China, Wise offers competitive rates and supports payments via Alipay and WeChat, ensuring quick availability of funds in CNY in the recipient’s bank account.

Important Information About Wise

  • Transfer Fees: For personal accounts, the fee is USD 4.23 plus 0.44% of the transferred amount. Business accounts are charged USD 0.37 plus 1.1% of the amount.
  • Transaction Limit: The limit is up to CNY 31,000 per transaction.
  • Foreign Exchange Rate: Wise uses the mid-market rate for currency conversion.
  • Setup Difficulty: Setting up an account with Wise is straightforward.
  • Speed: Transfers are processed within a few minutes when using Alipay and WeChat Pay.

Pesa (Formerly Pesapeer) - cheaper way to send money to China

Pesa, formerly Pesapeer, is a Canadian-based digital financial service provider that offers international money transfers to over 40 countries from Nigeria, Canada and the United Kingdom. Pesa offers money transfers to China for free and at the best rates in the market via CAD to CNY, GBP to CNY and NGN to CNY. Pesa supports these payout methods. Alipay App, or Bank Account

Key information about Pesa

  • Transfer Fees: $0 on all transactions to China
  • Transaction Limit: The receiving limit for transfers is ¥50,000 per transaction. This applies to individuals and businesses.
  • Foreign Exchange rate: Highly competitive rate
  • Onboarding experience: Easy and seamless to download the app and complete the process
  • Speed: Transactions are processed within minutes.

Send money with Pesa - no delays or hidden charges.

How to Send Money to China from Canada with Pesa

Using Pesa to send money from Canada to China is straightforward:

  1. Sign Up and Log In: Create an account with Pesa and log in.
  2. Complete your KYC
  3. Create a wallet and fund it
  4. Enter the Transfer Details: Specify the amount you want to send, the recipient's details, and choose the payment method.
  5. Confirm Exchange Rate: Check the CAD to YEN rate provided by Pesa.
  6. Send and Track: Once everything is confirmed, send the money and your recipient will receive it in minutes.

Is It Safe to Send Money to China Using Pesa?

Yes, sending money through Pesa is safe. Pesa uses advanced security measures to protect your financial and personal information. Additionally, it complies with all applicable regulations in Canada and China, ensuring a secure transaction process.

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