The information on or through this site is provided for general informational purposes only and should not be relied on as a substitute for specific advice about laws, regulations, taxes, finances, immigration or travel. For specific advice, contact a licensed attorney, financial advisor or other professional. We disclaim all liability and responsibility arising from any reliance placed on this site. We do not warrant the accuracy or usefulness of this information. This site may contain links to other sites and information provided by third parties for your convenience. We do not endorse nor make any guarantees with respect to these sites, their accessibility, the information they contain or the way they treat any information you provide to them.

How do international remittances, or cross-border money transfers, help promote financial inclusion? Improve your financial literacy by learning about budgeting and saving, personal finance.    

Learn how to send money using Ria Money Transfer, new services we offer, our omnichannel services, tips for sending money and the expansion of our network.    

Learn how international migration trends affect remittances and the impact remittances have on the individuals and communities around the world who receive them.     

Videos that feature Ria customers explaining in their own words how their experience of migration has impacted themselves, their families and their communities.     

Learn about different cultures around the world, how people celebrate, what it is like to live abroad and great travel destinations.     

What's new in cross-border payments, tech and finance? Learn about new payments methods like mobile wallets, the importance of the omnichannel experience and workplace trends.

What is Ria doing for the community? What does CSR, corporate social responsibility, mean? What's new in sponsorships at Ria?    

The Ria Blog

We use our own and third-party cookies to analyze our services and to show you advertising related to your preferences based on your browsing habits. Learn more by reading our 

We use first and third-party cookies to help us understand how you interact with the site by collecting and reporting information, such as the number of visitors or clicks. They do not allow us to collect your activity data beyond our site.

🍪 Cookies give you a personalized  experience

We use our own and third-party cookies to analyze our services and to show you advertising related to your preferences based on your browsing habits. Learn more by reading our

These cookies are essential to the basic functioning of our website. They turn on functions like page navigation, authentication, and access to secure areas.

One in seven people has sent or received remittances, so it’s not surprising that around USD$600 billion will be transferred this year.



For those unfamiliar with the term, remittances are the monetary aid sent by migrant workers back to their families in their home countries. And how much money is sent in remittances worldwide every year? <a href="https://www.worldbank.org/en/news/press-release/2019/04/08/record-high-remittances-sent-globally-in-2018">According to the World Bank</a>, remittances to low- and middle-income countries reached a record high in 2018, with an estimate of $529 billion, 9.6% higher than the previous year’s total of $483 billion. <a href="https://www.riamoneytransfer.com/en/blog/5-countries-dependent-on-remittances">Some countries are so dependent on remittances</a> that a significant percentage of their GDP comes from this cash inflow, sent by people living abroad (more on this later).



In 2015, the United Nations General Assembly proposed a set of sustainable development goals to be reached by 2030. One of them was to bring down the global cost of remittances to 3%. At the time, the average sat at 8.73%. The figure has dropped to 6.94% since then, with a yearly average decrease of around 0.6%. At this pace, it will take another seven years to reach the Global Sustainable Development Goal, bringing remittance prices worldwide to more reasonable levels.



<h2 class="wp-block-heading">Remittance prices worldwide: The current market</h2>



To keep track of cost fluctuations and bring greater transparency to the business of money transfers, the World Bank publishes a “Remittance Prices Worldwide” <a href="http://remittanceprices.worldbank.org">report </a>each quarter. This is a detailed review of the cost of sending <a href="https://www.riamoneytransfer.com/en/blog/remittances">remittances </a>through 365 country corridors, representative of the transfers between the 48 sending countries and 105 receiving countries.



At present, there are three major channels for international money transfers: banks, post offices and money transfer operators (MTOs).



For the third quarter of 2018, banks remained well above the global average (10.51%), while MTOs represented the most affordable option (6.11%). The cost of remittances also varies significantly depending on the receiving region, with South Asia being the cheapest (5.40%) and Sub-Saharan Africa being the most expensive (8.96%).



When it comes to the member countries of the United Nations’ G8 council, Japan, Germany, United Kingdom and Canada have the highest average costs, whereas France, Italy, the United States and Russia have the lowest.



Nevertheless, countries like Japan are making a great effort to close the gap, dropping from 10.8% to 9.58% in one quarter in 2018.



And the sense of urgency nations and institutions might feel to make remittances more affordable is well-founded. Reaching this sustainable development goal is imperative to attaining others like ending poverty and hunger.



<h2 class="wp-block-heading">The importance of bringing down the global remittance cost</h2>



What is the global role of remittance in the economy? Remittances surpass foreign aid by more than 300%. For many receiving countries, remittances account for up to 25% of their GDP, as is the case for Haiti and Nepal.



However, the cost is often expensive compared to the incomes of migrant workers.



If the global cost of remittances was reduced by just 4%, the World Bank suggests that over $16 billion more could be sent to developing countries every year.



A reduction in money transfer costs would increase support to these regions and help raise the basic standard of living for thousands of families.



<h2 class="wp-block-heading">The Ria Promise</h2>



By fostering and encouraging competition, MTOs can continue to bring down the global cost of remittances.



At Ria Money Transfer, we help further <a href="https://www.riamoneytransfer.com/en/blog/financial-inclusion-make-it-work">financial inclusion</a> by staying ahead of the curve with our competitive rates. It’s simple math.



For example, imagine a customer wants to send USD$300 to their family. If they’re charged the current global average in fees, the cost for the customer will be of USD$21. However, if the customer is charged the 3.0% average the United Nations suggests, the cost would be of USD$9 and represent a USD$12 saving that goes straight into the beneficiary’s pocket.



In essence, the more money our customers can save in fees, the more money their families can receive.



There are 2.5 billion underbanked people that depend on remittances to live. We need their global cost to reflect our dedication as an international community to do right by them.



Ready to send money? We&#8217;re here for you. Transfer money safely, easily and almost instantly with the Ria Money Transfer app &#8211;<a href="https://riamoneytransfer.app.link/UQnPAu4ZZmb"> download it for iOS or Android today</a> to get started!

Illustration of a diverse group of people in front of a globe marked with checkmarks denoting progress or achievement. The background includes a map with dotted lines connecting the checkmarks. The overall theme suggests global connectivity and collaboration.

The Global Cost of Remittances

About the author

Gabrielle van Welie

Related posts

Why Ethiopia’s Remittances Surged to Over $6 Billion

7 Money Transfer Mistakes (and How to Avoid Them)

How to Send Money to Peru: Fees, Speed & Best Methods

Empowering Migrants: Ria Money Transfer & Proyecto Migrante Join Forces