Finance

Remittances matter 

Author:    Preethy Kurian, Crosspay   |   August 2, 2023   |   Listen

Remittances matter and have a significant impact on economies around the world. Despite global headwinds, remittances to low- and middle-income countries (LMICs) grew 5% in 2022 from the previous year. The World Bank Migration and Development Brief reports that this growth is sharply lower than the 10.2% increase seen in 2021; however, it still represents a substantial boost for recipient economies. Digital transactions contribute an estimated $148.08 billion to 2023 global remittance volume—an 18.6% share. Volume is expected to grow 12.58% annually to $339.87 billion in 2030, per February 2023 data from Research and Markets.  

Sending money internationally is easier and more secure now than ever before. Money transfer services such as Western Union, Crosspay and MoneyGram are fast, reliable and offer competitive rates. It’s also becoming increasingly popular to send money through digital platforms like Crosspay and TransferWise, making it even more convenient. 

But what you may not know is the following 8 facts about how remittances matter: 

1. Remittances are the largest source of external income for many developing countries, often exceeding foreign direct investments and official aid.
2. Over 70% of remittance payments go directly to families for basic needs such as food, shelter and medical bills.
3. Women benefit disproportionately from international remittances, including education, healthcare and living standards.
4. The money sent back by migrants helps to stimulate economic growth in their home countries.
5. Money transfer fees have decreased dramatically over the past two decades, allowing for more remittances to reach family and friends abroad.
6. Over 200 million people are estimated to be remittance senders and recipients.
7. Remittances can help build financial resilience in times of crisis, such as natural disasters or economic turmoil.
8. Remittance payments help bridge the gap between those who are able to work abroad and the family members they leave behind.

Remittances matter not only for families and individuals but also for entire economies. With the introduction of digital money transfer services, sending money home is easier than ever before. It’s important to understand the impact remittances have on communities worldwide so we can continue to support our family and friends abroad. 

Now that you know why remittances matter, you can make an informed decision when sending money overseas. Choose a reliable and secure money transfer service to ensure your remittances reach their destination quickly and safely. Ensure you know all the fees associated with the transaction so you know exactly how much will arrive to your recipient. With these tips in mind, you can rest assured that your remittances will positively impact the lives of those you’re sending money to. So go ahead and make your next international money transfer with confidence! 

Among money transfer operators, Crosspay is a brand known for innovative technology that has empowered customers to move money more efficiently. Using the latest technology, Crosspay lets clients make cross-border payments faster & securely by connecting local banking systems, mobile providers and local agents with the world’s leading payment networks. At Crosspay, we provide digital solutions and have our own retail stores and agents nationwide so customers can make payments at their convenience. 

At Crosspay, we aim to facilitate the movement of money across borders by making it easier, quicker and less costly for customers. Our objective is to create a seamless and secure way for people to move money internationally. 

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