Remittance explained

In this era of globalization, international business expansion and a 24/7 digital economy, it should come as no surprise that a vast trove of innovation is occurring in tandem with these widespread shifts. Although remittance has long been an important tool for individuals seeking to transfer money to friends and family in foreign countries, the transformation of the internet into the ubiquitous phenomenon it has become has fundamentally changed the means by which remittance operates. For many individuals, online remittance tools have become an important element of both personal finances and family dynamics. The ability to instantly send money abroad has upended nearly all of the traditional paradigms within which remittance had once operated.

That being said, how exactly would you define remittance? Simply put, the act of remittance can be thought of as a transfer of money from an individual in one country to the bank ac-count of an individual in another. For lack of a better term, remittance can be defined as a foreign deposit. The most common manifestations of remittance can be witnessed in the lives of migrant workers, many of whom devote a portion of their paychecks to family members in their country of origin. To send this money back to their family, these workers use remittance services.

In the pre-internet era, remittance proved to be quite costly for customers. High service rates meant that customers were often forced to spend a substantial portion of their check in charges and fees even. Essentially, customers were paying for the ‘privilege’ of sending money abroad. Today, however, the high density of remittance companies vying for customers online has drastically reduced the overall fees charged to consumers. Now, more than ever before, remittance has become a consumer-friendly tool.

Using online remittance services, customers can specify to whom they will be sending money and from which personal account the money should be transferred from. Thanks to highly secure systems, customers can by and large rest assured that their transaction will be shielded from cybercrime. Although remittances remain a less expedient form of money transfer than a wire, they are nevertheless quite rapid. In many cases, individuals can expect their money to complete its journey within a matter of days. Given the fact that online remittance is significantly less expensive than traditional remittance with respect to service fees, users can expect that their experience with these innovative digital platforms will maximize service without encroaching on budget.

Perhaps the most compelling element of online remittance is the competition which exists within this industry. The fact that so many businesses are vying for customer attention means that service and performance can make the difference between success or failure for these enterprises. Regardless of who wins or loses in this battle, the customer always comes out ahead. Those who are interested in learning more about online remittance are encouraged to browse the internet for various reviews and surveys of the platforms available for use today, Here, customers will find all of the information they need to make an informed decision as to whether or not online remittance is, indeed, the right service for them.

It is also important to mention that the future of remittance will likely appear markedly differ-ent than it does today as technology continues to evolve and new ideas further revolutionize this critical industry. Staying on top of the latest remittance trends is a powerful tool for those who are eager to learn more about precisely how the world of finance will be shaped by the digital renaissance.

Read 205 times
Isuru Karavita

He graduated from the university of Hertfordshire with a BEng(Hons) in Digital Communication and Electronic Engineering. 

Latest Posts