What is a remittance? How money sent home works, what it costs, and who earns
By SendPay Business · · 2 min read
- 1Pick who to pay and type the amount
- 2Tap send and it is on its way
- 3It lands in their account
A remittance is money someone sends to family or friends in another country, usually from where they work to where they grew up. According to the World Bank, remittances to low- and middle-income countries run to hundreds of billions of dollars a year, more than those countries receive in foreign aid.
How people send money home
- Bank transfers, often through SWIFT, which can be slow and costly.
- Money transfer shops, paying out as cash at an agent.
- Transfer apps, paying into a bank account or mobile money wallet.
What it costs
World Bank figures put the global average cost of sending $200 at around 6%, and much higher on some routes. The United Nations has a target of cutting it below 3%. Much of the cost is hidden in the exchange rate rather than the fee.
Try it
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Colour
What it does
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Why it's an opportunity
Remittances are regular, loyal business: people send every month, often for years. A transfer app that focuses on one community and one or two routes, with a fair rate and fast payout, can win customers from bigger providers.
Starting a remittance app
You'll need a licensed partner for moving and holding money, and payout partners in the receiving country. SendPay money transfer platforms are powered by licensed partners, and you can design and preview yours free before you launch.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
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- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
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- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
What could a money transfer business earn?
Work out monthly profit from transfer fees and an exchange rate margin, after your costs.
Money transfer business calculator →How much does my own transfer really cost?
The calculator adds the fee and the hidden exchange rate margin.
Money transfer cost calculator →How do international transfers work?
The guide explains SWIFT, SEPA and local payouts.
How international transfers work →How do I build a transfer app?
The step-by-step guide covers partners, routes and launch.
Build a money transfer app →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.