As we speak, credit cards companies are striving to expand their service when it comes to wiring money. Many notable credit card companies have begun usingpre-paid credit cards to make it less complicated for their customers to wire money online.

The model is as follows; The sender simply goes online to set up an account, then submits the amount and the recipient . The company sends the recipient a pre-paid credit card and secret PIN which may be used as any standard credit card, at any ATM, or for any purchase. If the sender needs to transfer more money they simply go online, and the money goes straight onto the card the recipient is already in possession of.

Could it be? Have we seen the day we no longer need cash? Some businesses are already trying to do away with traditional paychecks, so people have begun having their paychecks wired directly into bank accounts. Many businesses are also taking advantage of online companies to pay employees.

So what does all this mean for standard money transfer services? Many experts claim the number of people using credit cards or the internet to transfer money will surely increase.

Many location based-services have realized their value will diminish over the years as more people turn to credit cards to transfer money online. To fight back, many location based companies have started collaborating with big-name banks and it is projected that by the end of 2009, most of these companies will be offering services though those banks. And although most banks already have a transfer system in place, this move could possibly be the swaying factor that keeps those businesses afloat.

The model for these companies is simple. If you use a bank to wire money you will be faced with a flat rate whether you choose to transfer $100 or $1000. Location-based services on the other hand, charge depending on the amount.

So why would anyone choose to use a location-based company as opposed to a bank? Well location-based services now give senders the opportunity to to wire the money to a location, whereas a bank only allows you to send the money from one bank account to another.

Regardless of how the money transfer world swings in the coming years, two things are clear; it will steadily become easier to use a credit card to transfer money online and the time it takes to get that money sent will only be lessened.