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Gifting money to friends and family this holiday can be a convenient and appreciated gesture. An international poll from YouGov found that nearly four in ten people prefer receiving money over a gift.1
Besides being a great last-minute holiday gift idea, money doesn't require braving the holiday crowds in a store. Plus, there are many ways to send money — from a check to a wire transfer to a digital gift card. But, to protect against potential fraud and theft, it's important to send money as a gift safely.
This guide digs into some of the most common options for sending money quickly and securely to make this holiday season the jolliest yet.
Digital wallets are an easy way to gift money. PayPal's digital wallet allows people to send money as a gift online between friends and family.
The wallet works by connecting your existing payment methods to a PayPal account. You can also add funds directly to your PayPal balance. From there, with the peer-to-peer (P2P) transfer function, it's easy to send money to anyone on PayPal quickly and safely. Money can be sent to friends and family in the US for free using your PayPal balance or bank account. If the recipient doesn't have PayPal, they'll receive an email to set up an account. Easy as that.
Between encrypting payments and multi-factor authentication, PayPal protects financial information. Both the sender and the receiver can keep their personal information secure.
One challenge of having friends and family abroad is figuring out how to send a physical gift that gets there on time (without spending a fortune on shipping). Sending money digitally can be a quick and convenient option.
When sending money internationally, it's important to consider exchange rates, additional fees, and processing times. Especially when sending to a different currency, things can quickly get confusing.
With PayPal, people can quickly transfer money to another PayPal account in over 110 countries. Xoom, a PayPal service, allows people to select additional delivery options like cash pickup or delivery, bank account transfer, and more.
A philanthropic approach is to send a charitable donation as a gift. It's a great way to demonstrate care for a friend or family member and to personalize a cash gift.
It's possible to donate to charity as a gift through PayPal by making a secure payment online. PayPal has a list of popular non-profits and charities, so people can easily find a charity to donate to.
Every year scammers try to steal money by making fraudulent charities (some of which are masquerading as well-known charities). So, it's important to ensure that the recipient is a legitimate organization.
Learn more about how to avoid charity scams.
Giving a holiday gift card is another way to personalize a cash gift. Buying holiday gift cards online can work for friends or family members who love a specific store or restaurant. Gift cards can be a standalone gift or a complement to a physical gift — for example, a gift card for a game alongside the gift of a gaming system.
There are many advantages to buying virtual gift cards, such as allowing the recipient to purchase most anything. For a special touch, send an online gift card that's personalized with a message or design.
On PayPal's gift card hub, gift cards are available from hundreds of top brands. It's important to make sure to avoid any gift card scams by buying from reputable sources and avoiding deals that seem too good to be true.
A money pool, or collection pot, can be a good way for multiple friends or family members to give a gift together. For instance, siblings can pool their money to give Mom and Dad a festive gift for the holiday. Parents can contribute money for one thoughtful group gift for a favorite teacher.
By collecting funds ahead of time, no one has to front the cash (or chase down friends or family members who didn't pay on time). It's more manageable for everyone involved, and costs are shared easily.
A money pool with friends makes tracking contributions and transparency among members simple. With PayPal, it's easy to pool money with friends and family. It’s free to create a pool and contribute from the US using your PayPal balance or bank account. And friends without PayPal accounts can contribute as guests.
Following these safety tips can help ensure a monetary gift arrives safely:
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