Reducing the cost of remittances is not a new phenomenon. For centuries, the Portuguese and Dutch traders would use what came to be known as “dilipatra” or “diliparas”. Dilipatra was a way of moving money from one place to another through the mail. It wasn’t until the advent of modern banking systems, with the advent of email, that remittances became faster, more seamless and affordable. The first electronic payment was the electronic transfer of wage or alimony payments. As the world moved into the age of computers, even more advancements were made.
With this, came the need for better ways to move money. New companies like Western Union and Moneygrams paved the way in establishing better ways to remit remittances to their customers. However, it was not until the late 1990s that technology took its first steps toward creating a more financially sustainable development model for remittances. Companies like BVI Transfer, Transferwise, and Legolas helped make possible what was then a dream of efficient international money transfer. In this article, we’ll take a closer look at what these companies are, how they work and how you can use them for your own remittances needs.
Fintech is an industry term that describes financial instruments used to transfer money. The most common example of this is the process of transferring money from one traveler’s bank account to another traveler’s bank account. This is the common norm. However, with the advent of technology came the need for faster and cheaper ways of transferring money. What have been some of these innovations?
Mobile money transfers have become increasingly popular over the last few years. For example, in many countries, it is now possible to send money online through text messages, or even video messages. This has led to the rise in popularity of smartphone applications which allow users to send money transfers within a matter of minutes. This is especially convenient for people living in developing countries, who may not always have access to computers or cell phones.
Another popular trend in the financial sector has been the rise in the use of prepaid cards, which are similar to MasterCard and Visa, but function using tokens rather than cash. These cards are issued by merchants who have selected to partner with specific financial institutions. One of the main attractions for Card users is that there is no need to carry large amounts of cash around. Rather, a cardholder can simply top up his or her balance, which acts as an incentive to continue using the card and reduces the risk of losing money while making remittance transfers.
Another option available to the international money transfers between migrants in developing countries is to use cashless ATMs. These have become popular in many countries in Europe and Central America because they help reduce the amount of time spent queuing at bank ATM’s. In addition, they allow immigrants to complete their transactions while going about their daily lives. Migrants often prefer these ATM’s because they are not attached to banks and therefore are not likely to run out of cash during a crucial time.
Remittances are only one aspect of sustainable development. It is important that all members of a Diaspora are aware of the requirements of the host country. There are many ways that members of the Diaspora can go about making their needs known. A brief look at a few examples should give a clear picture. The United Nations High Commissioner for Human Rights, for example, has been a strong critic of some South African policies regarding the treatment of migrants and asylum seekers.
Sending money to the developing countries where it is needed most is a way in which people can support their families. Money is rarely sent directly from developed countries to developing countries and, as a result, the costs can be high. However, there are various ways in which money can be sent from the Diaspora to its home country and reduced the costs significantly. Sending remittances to the Diaspora is a good way to ensure that the costs of sending money to developing countries are lowered.