What is a payment corridor? Why sending money costs more on some routes
By SendPay Business · · 2 min read
A payment corridor is a route money travels between two countries or currencies, such as UK to Nigeria or US to Mexico. Cost, speed and choice of provider can be very different from one corridor to the next.
What makes a corridor cheap or expensive
- How much money flows along it, as busy corridors attract more competition.
- Whether the receiving currency is widely traded or hard to buy.
- How easy it is to pay out, such as to bank accounts, mobile wallets or cash pickup.
- The checks and rules in both countries.
Tracking the cost
The World Bank publishes Remittance Prices Worldwide, which compares the cost of sending money across hundreds of corridors. One of the UN Sustainable Development Goals is to cut the average cost of sending remittances to under 3% by 2030.
Why it matters for businesses
A money transfer business usually starts with a few corridors it knows well, often where its founders or customers have family ties, then adds more once it can price them competitively.
Where SendPay fits
SendPay platforms give your customers GBP, EUR and USD accounts and transfers under your own brand, with an exchange fee you set, powered by licensed partners.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.