Remittances Explained

By Kirsten Barkved on December 15, 2016

It’s a word that’s tossed around a lot, that maybe you’ve heard but isn’t always completely understood: what exactly are remittances?

In our ever-global, connected world, there is a constant ebb and flow of work, money, and the transfer of goods for services. Millions of foreign workers emigrate to developed nations to find work and opportunity for reasons that are as unique as the individual. Whether it’s to invest, send money home to family or friends, or to pay for a loan, the funds that they make, save, and send to their country of origin helps them create a better opportunity.

This is what we call a remittance; a money transfer. It’s the value of hard work.

But more than that, its value is measured by the time spent away from family, friends, and home. Which means when you’re sending money abroad, you need it to be secure, arrive on time, and cost you, your friends or family, the least amount of fees.

For many, remittances from citizens working abroad are the main source of income for a family and are economically significant to the countries that receive them. It’s one of the largest financial inflows to developing countries. And it’s how many rely on helping family abroad.

Remittances allow countries to fund development their own way. The funds sent privately not only help individuals pay for food, goods and services, they help the underbanked and unbanked, getting those living in low-income situations to obtain bank accounts, which in turn helps to promote economic development in that region.

With the advancements in technology, more innovative methods of sending money online have surfaced, including VoPay. However, many still believe that the only way to send is through traditional overseas transfer services, such as banks and Western Union, both of which draw people in with a promise of small fees, neglecting to mention the high exchange rate. It means you end up losing money.

VoPay has created a fair, even way to send money abroad by removing the middle-man. Major banks and traditional money transfer services have been heavily criticized for their lack of transparency on remittances, often charging a hidden mark-up. With VoPay, we leverage the power of peer-to-peer technology; your bank account and its home currency. Combine this with the Mid-Market rate, the real exchange rate, and our upfront, low fee, we’re delivering on a promise to make sending money affordable.

We know firsthand the importance of saving while you send money internationally, know personally the frustration of seeing the hidden fees eat away at your hard-earned money. Which is why we offer you an upfront, low fee, saving up to 7% less than our competitors and major banks. No hidden fees. No markups. Just our fully-regulated, 100% secure platform that provides you real-time market rates, fast delivery, and safe, convenient options.