International Remittances

This blog post by SaveOnSend provides an analysis of Western Union’s chances of preserving its position in the money transfers market.

This blog post by SaveOnSend provides a comprehensive overview of money transfer startups.

The economic crisis induced by COVID-19 could be long, deep, and pervasive when viewed through a migration lens. In October 2020, COVID19 case numbers rose again to surpass 44 million. The number of fatalities surpassed 1.1 million. A recurrence of COVID19 phases accompanied by lockdowns, travel bans, and social distancing cannot be ruled out well…

CFI spoke with the United Nations Capital Development Fund (UNCDF) about the explosive growth of digital remittances in recent months, the drive to lower transaction fees, support for scaling digital innovation, and more. This is the second in an occasional series of interviews with professionals from development finance institutions, international financial institutions, and donor agencies…

The G20 has made enhancing cross-border payments a priority during the 2020 Saudi Arabian Presidency. Faster, cheaper, more transparent and more inclusive cross-border payment services would deliver widespread benefits for citizens and economies worldwide, supporting economic growth, international trade, global development and financial inclusion. This CPMI report, and its accompanying technical background report, represent the output…

The spread of Covid-19 and ‘stay at home’ measures in response to it are dramatically reshaping global societies and economies. This report from the European Commission contributes to understanding the potential economic implications of the Covid-19 crisis by focusing on its implications for migrant remittances in Africa. Large declines in remittance inflows could affect the…

On 19 March 2020, the Secretary-General of the United Nations called for an urgent and coordinated response from the international community to address the COVID-19 pandemic. Five days later, the Remittance Community Task Force (RCTF) was launched by Global Forum on Remittances, Investment and Development (GFRID) 2020 co-organizers, the International Fund for Agricultural Development (IFAD),…

The pandemic’s effect on the flow of global remittances sent by migrants back home to low- and middle-income countries (LMICs) is projected to be one of sharp decline – a fall by about one fifth this year. The estimated 20 per cent slump represents US$ 109 billion in 2020. The hardship of COVID-19 felt by migrants…

This report from Cenfri reveals the findings from their qualitative and quantitative research with remittance senders who live in the United Kingdom and send remittances to either Cameroon, Kenya, Nigeria or Uganda. Remittances act as key sources of financial support for households: They reduce the likelihood of impoverishment, contribute to improved health and education, and provide…

The ability to send and receive fast, transparent and trackable cross-border payments is a key driver to success in global business and trade. The correspondent banking community has made giant leaps forward to meet the requirements of global companies in 2019. This ebook from SWIFT explores how cross-border payments have progressed and utilising the following advancements:…

This is the most recent report from the Remittance Prices Worldwide website. The September 2019 report analyses global, regional and country specific trends in the cost of international remittances.

Cenfri explored national and regional payment systems in sub-Saharan Africa, and produced a two-part series identifying key themes that will facilitate remittances, including regulations and overcoming barriers. The series also explores some case-studies and gives guidelines for payment system development. You can read the series here

Accounting for almost half (135) of global mobile money deployments (276), Africa has huge potential to leverage digital financial services to make cross-border remittances cheaper and more efficient. The framework for cross-border remittances aims to address the cost and efficiency challenges of remittances in Africa. Sub-Saharan Africa (SSA) is the most expensive remittance corridor in…

Remittances play a critical role in facilitating financial flows to Sub-Saharan Africa. The value of formal remittances sent into the region is no longer growing, many are using informal channels die to the high cost of sending funds from outside and within the region. Cenfri in partnership with the Department for International Development (DFID) and Financial Sector Deepening Africa…

In this article, Xavier Martin offers a brief history of, and questions what is next for remittances.

This Report provides data on the cost of sending and receiving small amounts of money from one country to another. Remittance Prices Worldwide covers 367 “country corridors”. The corridors include 48 remittance sending countries and 105 receiving countries.

The World Bank put together a summary of remittances prices, tracking average cost over time, by type and by region. Download the report here and see some of the global trends and differences.

This set of guidelines illustrates how the mobile money industry is collaborating to ensure international remittances are facilitated in a safe and secure manner, consistent with global standards and local monetary policies and regulations. The working paper comprises an overview of the industry’s best practices, technical and operational considerations, and examples of how the guidelines…

This article by Hugo Cuevas-Mohr, is a broad view of de-risking, his opinions on some of the developments that he read, heard and witnessed leading up to the “De-Risking Forum” at IMTC WORLD 2017.

This White Paper provides an essential appraisal of the key trends in this rapidly developing marketplace, highlighting the primary factors shaping growth and assessing the opportunities presented by emerging payment mechanisms. It also presents a series of recommendations for current and prospective players across the payments value chain.

This report by IFAD provides data and analysis of remittances and migration trends for developing countries over the past decade, as well as the potential contributions of remittance families to reaching the SDGs by 2030.

This Remittances Infographic produced by FSD Africa shows the varied cost of transferring money from UK to Africa. Kenya, South Africa, Morocco and Egypt have some of the lower costs, whilst a remittances to Tanzania and Ethiopia paid the highest prices.  

Over the past two decades, there has been a digital revolution with pioneering developments in the form of the internet, email and mobile phones transforming the way information is accessed and communication takes place. For many market analysts, cross-border payments are the next frontier, where innovative technologies will challenge the expensive, clunky business models that…

This book is for Bitcoin enthusiasts, entrepreneurs, and industry veterans who wish to fully understand the Bitcoin-powered remittance process that startups around the world have been working on since 2013. It’s our hope that sharing these stories and data in a structured and well-packaged format will contribute to the rapid growth of the global crypto-money…

In August 2016, the GSMA commissioned an independent data collection exercise to assess the impact of mobile money on reducing the cost of remittances.   The results show that mobile money is driving a price revolution in international remittances. It is doing this by increasing competition, leveraging existing networks and infrastructure, and capturing smaller remittance…

A promising new model is emerging for cross-border remittances with mobile money as both the sending and the receiving channel. This paper from GSMA draws commercial insights from two early examples in the West African Economic Monetary Union (WAEMU), where member states are socio-economically integrated and adoption of mobile money has been rapid in recent…

Migration has become a flashpoint for debate in many countries. But McKinsey Global Institute research finds that it generates significant economic benefits—and more effective integration of immigrants could increase those benefits.

SUERF organised a combined evening event (in German at the University of Zurich) and one-day conference (in English at the theatre ‘Millers’ in Zurich) to take stock of the arguments brought forward in the current debate on the pros and cons and, more generally, the future of cash. This collection, Cash on Trial discusses the…

‘Africa is rising’ is a powerful phrase these days. The rising middle class will undoubtedly help to drive up demand for consumer goods, creating the business case for African firms to upgrade their production processes and expand their businesses. As Africa pursues deeper economic integration, facilitation of payments across borders and integration of financial markets…

Each year, Somali migrants around the world send approximately $1.3 billion to Somalia. Of that, approximately $215 million comes from SomaliAmericans and Somalis in the United States—comparable to the total amount of development and humanitarian assistance that the US government sent to Somalia in fiscal year 2012 ($242 million). These flows, facilitated by SomaliAmerican money…

A substantive literature suggests that migration generates benefits for migrants, the host societies, and the countries of origin. The economic benefits for the countries of origin are realized primarily through the receipt of remittances. These large and stable resource flows remained relatively resilient during the global financial crisis compared to steep declines in private capital…

Remittances in Africa is a review that catalogues the main studies, policy, and technical assistance programs undertaken on remittances in Africa that have been carried out by the World Bank, development partners, and governments in order to provide support leading up to the creation of the African Institute for Remittances (AIR) project.  The review of…

An industry first, the new functionality connects senders and receivers through their Facebook friend list, enabling them to exchange details immediately and links them to the Azimo app to make a transfer, all within a few simple clicks. With social networks connecting billions of people across the globe, the integration harnesses the widespread use and…

The World Bank estimates that in 2011 more than USD 483 billion was sent internationally through official remittance channels with the bulk of that – $351 billion – going to developing countries. It projects that the total will rise to $593 billion by 2014, with $441 billion going to developing countries. The amount that flows…

This Africa Trade Policy Note provides a description of the supply side factors influencing the development of mobile banking services –remittances and informal trade, and the financial and telecommunications landscape. It highlights the key regulatory issues facing Southern African countries, and concludes with recommendations for overcoming the constraints to the development of accessible mbanking in…

Remittance senders evaluate the costs and benefits of money transfer services. Two conditions are of paramount interest: low costs and accessibility of use for the sender and receiver. The use of mobile phones (a ubiquitous technology) for sending money, paying for services, and banking is increasingly seen not only as the best option for remittances,…

More than 220 million people live outside the countries and communities they call home. The individual stories of those who leave their rural villages for cities and destinations abroad are stories of great dedication, but also of tremendous sacrifice. The ramifications of the personal decision to migrate have direct effects on development that reach far…

This study from CGAP examines the landscape for international remittances through branchless banking. The transfer of remittances through mobile phones or pre-paid cards are common examples that may not require a user to have a bank account.

Africa presents a minefield of opportunity for fintech companies due to the lack of legacy infrastructure. The formal market for money transfers in Africa is still relatively young and faces challenges typical of emerging markets including uncertainty regarding the volume of remittances, limited competition, higher transfer costs and a lack of technological innovations, with Kenya and South Africa being…

Why would a person choose to send a regional low value remittance from South Africa to any SADC country through the formal banking system in South Africa, be it through a telegraphic transfer (TT) or through the use of the Western Union or MoneyGram service now being offered by ABSA Bank, Standard Bank and Bidvest…

A promising new model is emerging for cross-border remittances with mobile money as both the sending and the receiving channel. This paper from the GSMA draws commercial insights from two early examples in the West African Economic Monetary Union (WAEMU), where member states are socio-economically integrated and adoption of mobile money has been rapid in…

Remittances are extremely important in the Latin American context.  What is the impact of these flows on the poverty levels of the different countries? Are there costs associated with remittances—and more significantly—to the migration that logically precedes remittances flows? What are the main challenges that policy makers face in countries experiencing a surge in remittances…

This paper from the World Bank uses survey data, including about 10,000 households in five countries—Burkina Faso, Kenya, Nigeria, Senegal, and Uganda—to investigate the link between international remittances and households’ financial inclusion in Sub-Saharan Africa. The paper finds that receiving international remittances increases the probability that the household opens a bank account in all the…

Mobile network operators (MNOs) are becoming increasingly interested in offering international remittances, often as a new transaction type added to an existing mobile money service currently providing domestic transactions. This paper from the GSMA reviews the international remittance market, the opportunity for MNOs, and the technical, legal, commercial, and operational considerations for any new player…

This website from World Bank provides data on the cost of sending and receiving small amounts of money from one country to another. Called remittances, these international transfers are often initiated by migrant workers. The aggregate cash flows and the number of participants are enormous. In fact, the World Bank estimates that remittances totaled $575 billion…

Each quarter the World Bank publishes data on how much it costs to send money home. The Remittance Prices Worldwide database monitors the cost of sending remittances in major international corridors, which includes 227 country corridors — 32 remittance sending countries to 89 remittance receiving countries. The international community, led by the World Bank, started…

This guideline note from afi begins with a brief description of four different mechanisms for facilitating mobile-enabled cross-border payments. This is followed by a discussion of two types of mobile-enabled cross-border payment services: (1) those in which an m-money wallet is used to receive funds; and (2) those in which an m-money wallet is used…

The mobile money industry plays a key role within the global remittances space. This post from the GSMA focuses on the customer benefits of sending and receiving international remittances using mobile money. More than 250 million people (or 3.4% of the global population) live outside their countries of birth. Migrants often send money back home,…

This report from the GSMA gives an overview  of mobile International Remittance Service Provider service offerings, ecosystem, provider models and considerations for partnerships.  

CGAP’s  commissioned a ‘refresh’ on an earlier landscaping study for international remittances through mobile money. Read more here. 

This book traces the history and development of a mutual organization in the financial sector called SWIFT, the Society for Worldwide Interbank Financial Telecommunication. Over the last forty years, SWIFT has served the financial services sector as proprietary communications platform, provider of products and services, standards developer, and conference organizer (“Sibos”). Founded to create efficiencies…

This paper by the Overseas Development Institution makes the case for putting remittances at the centre of international cooperation on development. It is divided into four parts. The first looks at the level of remittances to Africa and at the drivers of migration. Part 2 provides a summary overview of evidence on the benefits of…

Money or Value Transfer Services (MVTS) play an important role in the international financial system and in supporting financial inclusion. In December 2015, the United Nations estimated that developing countries received over USD 400 billion in remittances from migrants living abroad in 2014. However, like other financial institutions, MVTS providers are also vulnerable to the…

This article examines the impact of banks in the United States abandoning the business of transferring money to other countries, as a result of government regulators cracking down on the financing of terrorists and drug traffickers.

The relationship between migration and development is a key topic for research and policy. Earlier pessimistic perspectives focused on the threat to development of poorer countries through the loss of human resources. Recently, a more optimistic view has been advanced by northern governments and international agencies. This is based on the idea that remittance flows…

In recent years, various organisations have tackled issues related to the important topic of international remittances. However, few of these reports have been devoted specifically to the “payment system aspects” of remittances – in effect, the practical realities of actually transferring money. Understanding these payment system aspects is crucial to understanding remittances and to ensuring…