What is Remittance? How Remittance Works in Today's Global Economy?

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What is Remittance? How Remittance Works in Today's Global Economy?

What is it?

Remittance is the transferring of money from one point to another, especially from a foreign nation to one's nation of birth. In this era of globalisation, many people are leaving their home countries in search of employment and business venture. As expected, one may want to send money earned in a foreign nation to another. This transfer of money is a process that involves banks and other financial institutions.

Remittance began with the age of industrialisation, where people began leaving their farms to work in urban centres away from home and had to send money back. Developing nations have benefitted from money remitted into their economy as a result of their people working and doing business around the world. Migrant labour is one of the leading factors in boosting economy of developing nations.

How it works?

For most developing countries, remittance is among the major sources of foreign income. The World Bank, in a report, revealed that global remittance flows totaled US$613 billion in 20171. Of that figure, remittances to developing countries amounted to US$466 billion, with the Philippines, India, Indonesia, Bangladesh and Nepal making up the largest share. But how do people perform remittance?

There are various international money transfer options: mail, send as cash or through wire transfer. Also, one can opt for mobile money transfer, bank cheques, money orders and drafts. Recently, Bitcoins have become another way to transfer money.

Normally, a sender would visit a firm that deals with money transfer and provide the details of the recipient. The recipient then collects money from cash pickup outlets or their bank accounts/e-wallets within minutes — all made possible by Tranglo platform in the background.

Tranglo simplifies the complexities of cross-border transactions by unifying various countries' payment rails into a single interface. It supports multiple remittance channels: this means that beneficiaries can receive money in their bank accounts, e-wallets or even through cash pickup points. With tens of thousands of pickup partners all over the world, anyone can easily collect cash anywhere.

Not only that, Tranglo supports round-the-clock instant payout in countries such as Indonesia, the Philippines, Nepal, Vietnam and India, to name a few. Need access to cash immediately? Tranglo has got you covered.

And, with more collaborations being planned and executed daily, Tranglo, as a digital payment hub, enables quick and efficient money transfers not only regionally but globally.

To know more about how to maximise the potential of your business through seamless remittance, contact Tranglo at hello@tranglo.com. Let us help you grow your business securely, effectively and tangibly.

Global Migration Data Analysis Center, 2018.

Related article: 

Why making inward and outward remittances more accessible is important

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