What is Remittance?

A remittance is money sent by an individual or group, often a migrant worker, to someone else, typically family members living elsewhere. These funds frequently support daily needs or long-term expenses in the recipient’s country.

How Remittances Work

Transfer Methods: Funds move electronically via banks or specialized services like Wise or Western Union.

Timing & Fees: Most transfers complete within minutes, but include a processing fee.

Example: 

A person employed abroad sends part of their paycheck home through a wire transfer. Their relatives then use the funds for housing, groceries, or savings, sometimes opening bank accounts with the deposited money.

How to Send a Remittance

• Select a bank transfer or a money-transfer app that supports international payments.

• Share the beneficiary’s bank name, account number, and routing code with your provider.

• Cover the transfer charges—higher for fast wire transfers, lower for slower ACH and submit the payment.

• The recipient can receive the money directly into their bank account or collect it from a local agent, depending on the chosen service.