Door to Door Remittances: Lifelines for Millions
It has recently emerged that remittances form the bulk of some developing countries’ GDP and change the lives of hundreds of millions of people. Remittances present a lifeline to many households and change the fortunes of citizens who have no other option besides the generosity and magnanimity of their families and relatives working abroad for a handy amount to remit home.
Money remittance is the transfer of money by a migrant to a person in his or her home country. This money makes a profound difference in the lives of those who receive it. It also plays a big role in the economy of the recipient’s country. In fact, the impact of remittances on the economy is quite astounding.
According to recent statistics, almost 700 million people worldwide rely on remittances from spouses and other family working abroad. That equates to roughly 10% of the world’s population. On average, migrant workers try to send home $200 a month to support their family and friends. World Bank reports that remittances hit an all-time high of $582 billion in 2014 worldwide. This colossal figure is three times the value of Official Development Assistance (ODA) and is significantly higher than the total Foreign Direct Investment (FDI) to most developing countries. In India, the amount of remittances trickling in is three times larger than inward investments done by foreign firms. In some poorer countries such as Tajikistan, Nepal, and Somalia, the cumulative amount of remittances comprises a significant portion of the country’s’ GDP – ranging from a quarter of Nepal’s to almost half of Tajikistan’s.
The impact of these remittances is so large that it may not be accurately quantified. While the bulk of the funds are used primarily to meet family needs, a sizable portion is set aside for credit mobilization, savings, and other forms of investment. This means that remittances are an effective grassroots economic growth program, especially in rural areas that sometimes suffer from financial exclusion.
However, there tends to be a problem with remittances. The fees charged by payment service providers cost about USD 45 billion each year. On average, each migrant sends about $200 home. 7.9% or, more precisely, $15 will be excised as fees for the money transfer. The fees are that high partly because most of the institutions that engender these transactions don’t regard remittances as part of their core services. Therefore, they lack customer service, ease of sending and receiving money, and transfer speed.
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This has led to the emergence of dedicated remittance providers which are popularly known as Money Transfer Operators. With Money Transfer Operators, the process is extremely simplified. One such dedicated money remittance company is Lucky Money. Lucky Money allows you to send money to India, The Philippines, Nepal, Vietnam, Mexico and many other countries. With Lucky Money, the costs of wiring money to your relations is much lower and the process is a lot simpler. If you are interested in an inexpensive option for money remittance visit our website https://www.luckymoney.com/.