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By 1877 the service was used to transfer almost $2.5M ($55M in todayβs value) each year. Because the earliest wire transfers were using telegraph networks, it was termed telegraphic transfer and this name is still used in some countries.
Funny we still use the term βwire funds. The first widely used service for wire transfers was launched by Western Union in 1872 on its existing telegraph networkβ¦ π
Once a sender had paid money to one telegraph office, the operator could transmit a message and "wire" the money to another office, using passwords and code books to authorize the release of the funds to a recipient at that location.