“Remittance” defined, and the power of digital money transfer platforms revealed
According to Merriam Webster, “remittance” is defined as a transmittal of money to a distant place like another country. This transmission of money may be done through traditional money management methods such as a bank or through modern solutions like a digital money transfer platform.
As we continue into the new year, the remittance market is expected to expand despite a slight decrease in the amount transferred due to the COVID-19 pandemic. In fact, in 2022, experts project remittances to grow at nearly 5%.
The power of a remittance
Whether for paying bills in a foreign country or supporting organizations abroad, a remittance may be sent for several reasons, but more often than not, money is sent to financially care for loved ones living internationally. For instance, over the past two-years, remittances were used as a lifeline to stay connected to loved ones during the pandemic when travel restrictions were implemented across the globe.
Moving forward, the act of transferring money to friends and family living abroad is anticipated to increase as businesses financially recover and people recuperate and plan for a financially healthier 2022.
What’s more, transferring money abroad has never been more convenient. Through digital methods, people are granted more transparency, visibility and power over when and how they want to send money. Remittances are especially beneficial in less developed countries where economic inequality has left many less-financially sound. As a result, remittances to low- and middle-income countries are projected to grow.
Why choose Paysend’s remittance platform
Paysend’s digital money transfer platform makes sending money home to a loved one:
- Easy. Instead of having to commute from your home to a bank, remittance outlet, etc. to then wait in line to speak to a cashier to transfer money, Paysend users can send money right from the palm of their hands anywhere, anytime.
- Fast. Transferring money through a bank may sometimes take more time due to slower processing times. With Paysend, transfers usually arrive to a recipient in close to real-time.
- Affordable. Paysend charges a flat fee of just $2 when transferring money internationally from the US.
Want an easy way to send a remittance to your friends or family living internationally? Download the Paysend Global Transfers app* from the App Store or Google Play today!
*Standard data rates from your wireless service provider may apply.
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Here's the short answer: yes, you can use a credit card to get money into someone's bank account abroad. "Credit card to bank transfer" means exactly that — you fund the transfer with your credit card, and your recipient receives it in their bank account. Or on their card, in their wallet, or as cash to collect, depending on where they are.
The card and the bank account do different jobs. Your card pays for the transfer. A provider like Paysend then pays the money out through local systems on the other end. It's one flow, and it takes about a minute in the app.
One thing worth knowing before you start: a credit card is usually the most expensive way to fund a transfer. Some issuers treat it as a cash advance, and credit tends to carry higher payment fees than debit. You'll always see the full cost, exchange rate included, before you confirm anything. What follows is: the ways your money can arrive, what each one costs, how fast it gets there, and the cheaper routes worth checking first.
Every month, thousands of people working in the Czech Republic send part of their payday home — many of them Ukrainians supporting family across the border. And the traditional route makes it harder than it should be: bank wires that ask for IBANs and SWIFT codes, fees that only show up after the money's gone, and days of waiting while someone at home is counting on it.
Pavel Štich has spent years helping his readers solve exactly that. He's Co-Founder and Lead Financial Editor at Moneyo.cz, an independent Czech platform that compares money transfer services, stock brokers, and alternative investments — and a Paysend Ambassador, which means he tests what he recommends, explains it plainly, and brings his readers reader-only perks. We asked him how Moneyo started, who reads it, and why he chose Paysend.
