The cost of sending money from one country to another is sky high. Some global remittances cost as high as 7 percent.
According to the World Bank, global remittances worth $550 billion are expected to be transferred to the developing countries this year. There are about 226 million migrant workers worldwide, and only a few of them can bear the high transfer fee.
There are two main reasons behind the sky high global remittance costs;lack of competition in the remittance industry and lack of bank accounts (which leads to involvement of physical cash). Innovative solutions such as digital remittance solutions, digital wallets, etc. are the ways through which remittance costs can be reduced, if not eliminated.