The global remittance industry has seen significant growth in recent years, with the World Bank reporting that global remittances reached $689 billion in 2019. This growth has been driven by the increasing number of people working and living abroad, as well as advancements in technology that have made it easier to send money across borders.
When it comes to sending money abroad through remittances, there are several options available. The most common methods include traditional wire transfers, money transfer operators (MTOs), and online platforms. Each of these options has its own advantages and disadvantages, and the best choice will depend on the specific needs of the sender and the recipient.
Traditional wire transfers, which are typically offered by banks and other financial institutions, are often the most expensive option. They can also take several days to complete and require a lot of personal information to be exchanged. However, they are often considered the most secure option and are widely accepted by banks and other financial institutions around the world.
Money transfer operators (MTOs) are another popular option for sending money abroad. These companies, such as Western Union and MoneyGram, offer a wide range of services and often have a physical presence in many countries. They tend to be cheaper than traditional wire transfers and can often complete the transaction in a matter of minutes. However, they may not be as widely accepted and may not offer the same level of security as traditional wire transfers.
Online platforms, such as PayPal, Venmo, and TransferWise, have become increasingly popular in recent years. These platforms allow users to send money abroad quickly and easily using just a smartphone or computer. They tend to be cheaper than traditional wire transfers and MTOs, and are often faster as well. However, they may not be available in all countries and may not be as widely accepted as traditional wire transfers or MTOs.
In addition to these traditional options, there are also a growing number of remittance startups that are using technology to disrupt the industry. For example, companies like WorldRemit, Azimo, and Remitly allow users to send money abroad using mobile apps and websites, often at lower costs and faster speeds than traditional options.