What is a remittance? How money sent home works, what it costs, and who earns
By SendPay Business · · 2 min read
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.
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, powered by licensed partners, start at £2,500, and you can preview yours free before you pay.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →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
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.