Here are key findings from the latest quarterly report, released in June.
Key Report Findings
- The average global cost of sending remittances fell to 7.68% as of June 2015, from 7.72% in the first quarter of the year.
- In three-quarters of all country corridors, it’s possible to send money for the cost of 10% or less. At the end of 2009, only half of the corridors had the cost of 10% or less.
The Cost of Sending Money from and to G20 Countries
- The cost of sending money from G20 countries fell to 7.58%.
- At 16.79%, South Africa remains the most costly G20 country to send money from.
- Russia is the least expensive country, followed by Saudi Arabia at 4.06%.
- The cost to send money to G20 countries that are included in RPW as receiving markets, increased to 8.08%.
- It’s most expensive to send money to China, 10.38%, and Brazil, 9.38%.
- Mexico and Indonesia are the cheapest receiving markets, at 5.30% and 6.69%, respectively.
The Cost of Sending Money to Different Regions
- Sub-Saharan Africa remains the most expensive region to send money to. However, the cost of sending money decreased to 9.74%.
- At 5.74%, South Asia is still the least costly region to send money to.
- East Asia & the Pacific and South Asia remained stable at 8.11%.
- Middle East & North Africa fell to 8.21%.
- The cost to send remittance to East Europe and Central Asia also fell. The cost fell to 6.02%, if Russia is included in the calculation. Without Russia, the cost is 7.18%.
- For Latin America & the Caribbean, however, the cost rose to 6.78%.
The Cost of Using Different Channels to Send Money
- Sending money through a post office remains the least expensive, while going through a commercial bank is still the most costly.
- Post offices’ remittance charges fell to 5.14%.
- Using banks to send money remained most expensive at 10.96%; however, these charges have been falling and were recorded below 11% for the first time!
- Sending money through Money Transfer Operators rose to 6.59%, from 6.36%.
Types of Products
- Most migrants still remit cash, but various online alternatives to cash continue to gain ground.
- The average cost to send cash was 6.94%.
- Online products are the cheapest product type at 5.48%.
- Account-to-account services are the most expensive at 11.20%. However, the cost of transfer within the same bank or to a partner bank in the receiving country is significantly cheaper at 7.16%.