Charting the Rise of Cross-Border Money Transfers (2015-2023)
In the briefing, it was revealed that by the year 2022, a whopping 79% of remittance payments were essentially directed towards countries that are labeled as being low-income or middle-income. The accessibility of low-cost and borderless money transfer solutions offered by companies such as Wise have ended up being significantly beneficial for immigrants when it comes to sustaining and supporting their families.
Cross-Border Money Transfers On The Rise
The transfer of funds across borders, commonly referred to as remittances, has been steadily expanding in significance. This financial sector has established its crucial role in meeting the needs of individuals residing in different countries by facilitating money transfers that aid in vital aspects of life such as sustenance, medical expenses, and education.
This picture, supported by Scottish Mortgage, examines the expansion of the remittance sector and the essential elements driving its prosperity.
The remittance sector plays a significant role in the global community due to the large number of migrants, which is more than 280 million, around the world.
When immigrants send billions of dollars back to their home countries every year, it can have a significant positive impact on the well-being of their loved ones and local area.
This holds especially accurate for countries with lower and moderate income levels, who obtained an average of 79% of remittance funds in 2022. This information was reported by Knomad, a project under the World Bank.
India stands out as a top player in terms of receiving remittance payments from around the world. A staggering amount of over $100 billion in remittances were received by India in 2022, leading to an immense boost for numerous families.
As the worldwide transfer of funds industry expands, it's crucial to recognize the significance of pioneering money transfer providers such as Wise.
Wise is a platform that is designed to cater to the needs of its users. It ensures that every individual can transfer money anywhere in the world at competitive exchange rates that won't break the bank. This user-centric approach makes it not only easy but also cost-effective for millions of people to send money back home.
Wise provides not only remittance options, but also a range of account services and a payment system that has supported more than 6.1 million customers to transfer more than $30 billion in the initial three months of 2023.
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