Remittances are a major source of international cash inflows for most developing countries. The year 2018 has seen tremendous growth with some countries reporting an increase of 4.24% in remittances. 466 billion in 2017, which is beyond the other sources of external financing like Overseas Development Assistance, long-term and short-term loans, as well as stock portfolio investments. 65 billion with countries like Kenya, Nigeria, Ghana, Egypt, and Ethiopia taking up the biggest share.
E.g. Malawi received in 2017 12 million USD from South African senders and 10 million USD from senders in Zimbabwe. This growth is attributed to the notable recovery of the global economy and the increasing need for immigrants to make significant investments in their homes of origins. A rising quantity of these countries adjust to new financial systems to support the money flows, e.g. if you want to send mobile money to Ghana. What is a Remittance? These are money sent by an expatriate or immigrant to his country of origins. He can use mail, online, or wire transfer to send the cash.
Remittances promote economic development, and in some countries, they act as essential disaster alleviation aid that surpasses the ODA. The money also helps less-developed countries to open up bank or investment company accounts. The procedure of remitting cash to these countries is entrusted to specific money transfer companies though users can take action utilizing their phones, credit cards and other channels. It is crucial for the sender to use stations that decrease the waiting around time for the recipient, which is also referred to as the remittance float.
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It is enough time taken for the recipient to receive the money. For example, if a check has been sent by an immigrant to his parent, child, or spouse via mail, the time taken up to send present it to the deposit and bank or investment company the money to the beneficiary’s account is the remittance float. Senders can decrease the remittance float as much as possible utilizing the fastest means of making the transfer. Mobile money remittances have made this technique as the recipient receives the money instantly easier.
Then it’s only a matter of preference of the most suitable international money transfer apps. Prior to the introduction of mobile money transfers for cross-border transactions (see also my popular article “Clever Money on Mobile Solutions for Africa”), Western and Moneygram Union were the most popular companies that were used to move money online. A sender had to visit a money transfer office and offer the recipient’s details and the money. The recipient would then allow the money to be transferred in their accounts or collect it in cash at a location near them. Predicated on the countries involved, the sender gets the option of using Western Union and Moneygram or PayPal or money transfer providers (MTO).
The methods differ based on your location, transfer fees, and your bank or investment company, among other factors. This method is utilized by senders who wish to move cash from one bank account to another using the SWIFT network. The sender telephone calls to the local bank or investment company branch or uses the bank’s online application to initiate the purchase.