01 Dec 2022
Did you know that remittances account for around 4% of the annual GDP of most lower-income countries?
The annual remittance flow in 2021 reached $589 billion, which is 7.3% more than the remittance flow in 2020. Remittances play a vital role in economic boosts for most countries. Digitisation opened new doors, and all the major financial institutions shifted to digital platforms for enhanced processing. Most money transfer operators (MTOs) offering online money transfer solutions play a valuable role in increasing remittance inflows to low-to-middle-income countries.
Here are a few ways online money transfers to developed countries are beneficial:
Earlier, remittances were mostly sent through banks. However, with time, people are shifting to Money Transfer Operators or MTOs. Money Transfer Operators are large international companies that provide global remittance services with the help of a worldwide network of agents, ATMs, and electronic channels.
Technological evolution changed the world for good. The economic advantage of this was the digitalisation of remittance flows. Over 2.2 billion people use mobile wallets and send remittances through their phones.
The digitalisation of remittances has made it easier to initiate transfers. Previously, senders and receivers had to wait in long lines to send and receive cash. Their time, money, and effort were wasted on the tedious banking procedures. This lowered the annual remittance flow.
The digitalisation of remittances has also helped improve opportunities for anti-money laundering (AML). Transaction are more traceable; hence it helps combat the Financing of Terrorism (CFT).
Money Transfer Operators have helped expat communities in different countries connect with their loved ones through financial support. Previously, the transfer fee for sending money to another country was very high. Banks would charge a great percentage of the amount. Most Money Transfer Operators like ACE cost only a fraction of what you would normally pay to a bank.
With this reduction in remittance fees, more and more expats have become enthusiastic about sending money back home, which has greatly increased the remittance flow.
ACE Money Transfer is one of the most trusted remittance providers that enables global expatriates to send money online to their families from overseas at the lowest fees yet at the highest exchange rates.
Most Money Transfer Operators work by creating an account on their medium. This means there is a financial inclusion of both senders and receivers. A higher percentage of remittance users with an account indicates that funds will be sent via those accounts and not through unregulated channels. This significantly increases the total worth of remittances and increases the impact on economic development.
Expats are usually hesitant about trusting a third party with their funds. Reputed Money Transfer Operators have solved this problem by making their systems completely transparent. Most services like ACE do not have any hidden charges like banks. Some banks would also charge a receiving fee from the recipient. ACE charges you a straight-up transfer fee and nothing else.
Consumer protection is one of the most important features that MTOs offer. They guarantee the safety of funds which has greatly impacted the remittance flow as more people find this service trustworthy.
Most remittances are left unsent due to a lack of banking facilities. MTOs like ACE offers cash pickup option for receivers with no bank accounts. This method is quick and credible. It has supported the livelihoods of many residing in underdeveloped areas.
ACE Money Transfer has been operating on a worldwide network since 2002. It has fostered millions of users globally and provided trustworthy service even in the most under-developed regions.
One of the features that separates ACE from its competitors is its speed. Most money transfers can take days to reach the recipient with expected delays. With ACE, your transfers will be completed within 24 hours without any delays.
Using online money transfer services can be an overwhelming experience for the elderly lot because they are not well-adept in digital services. The application and website of ACE Money Transfer have been designed in a manner that caters to every age group. It has self-explanatory steps that are easy to follow. There are absolutely no complexities involved in using ACE Money Transfer.
Most MTOs have lower transfer fees as compared to banks. ACE offers further reductions by offering the lowest transfer fee and market-competitive exchange rates. Buying currency exchange from anywhere else can result in massive losses for you if you intend to send a large sum of money back home. It is advisable to use ACE’s currency exchange. You can observe the market for as long as you like and purchase your desired currency at a suitable rate.
Remittance is the backbone of a developing nation’s economy, and MTOs are playing their part in increasing the remittance flow. ACE Money Transfer provides the most feasible services to send money abroad at unbelievable rates. Sign up on ACE for free to get access to unlimited international transactions.