how to send a remittance
remittances typically are sent using an electronic payment system or service remittances can also be sent by u s postal service money order for international money orders 3remittance feesfees to send money internationally vary according to the provider and the service the global average cost of sending a 200 remittance in the first quarter of 2021 according to the world bank it costs more to send remittances through banks than through digital channels or money transfer services 6financial impact of remittancesthe 2020 economic crisis and covid 19 had a severe impact on migrant workers and their families back home the world bank estimated in late 2020 that remittances to family members would drop by 14 in 2020 compared to pre epidemic levels it foresaw rising unemployment among migrants a slowing of new migrations and an increase in returns of migrants to their home countries 7there is a concern about the high cost of global remittances especially with the elevated drive towards global financial inclusion to promote transparency some countries limit remittances to bank wire transfers but banks are the most expensive transfer channel and wire transfers in particular are among the highest cost according to the world bank in the first quarter of 2021 average remittance costs for transfers to the middle east and north africa fell to 6 3 from 7 a year earlier in sub saharan africa costs averaged 8 down from 8 9 for the same period in latin america costs averaged 5 5 down from 6 6for low income countries or those with struggling economies remittances represent one of the largest sources of income for the native population in 2015 for example mexicans abroad sent more than 24 billion back home which was more money than the country generated from selling oil 8the collapse of the venezuelan economy caused an enormous migration to other nations and a corresponding increase in remittances to family members left behind in 2017 more than 1 5 billion in remittances were sent to family members remaining in the beleaguered country 9the top remittance recipient countries in 2021 were india 89 billion followed by mexico 54 billion and china 53 billion 10special considerationsthere are concerns among financial intelligence units that remittances are one of the ways in which money can be laundered or violent activities like terrorism can be sponsored the methodology countries use to record the amount of money people receive via remittances is rarely made public while the majority of value transfers occur via web or wire where they can be tracked easily a fair amount of money is transferred in ways that are harder to follow recent fintech financial technology waves in international money transfers are forcing fees down rising players include payoneer wise and worldremit regulation and oversight continue to be strengthened to ensure a more secure movement of funds 