Reimagining remittances in the digital age

Remittances — money sent home by workers abroad — ease the burdens of poverty for families, keeping them housed, fed, educated and healthy, and in turn strengthen the communities in which they live. And the total value of these funds continue to grow, increasing by 4.6% to $905 billion in 2024 compared to the previous year, and far outpacing foreign direct investment and aid. In Tonga and Tajikistan, remittances make up about 40% of the gross domestic product.

But getting that money home can be slow, expensive and opaque. Traditionally, cross-border payments like remittances rely on intermediaries, resulting in transfer fees that, according to the most recent World Bank data, are more than double the United Nations’ benchmark goal of 3% or less.

The digital revolution has dramatically improved domestic money transfers. Sending money to my daughter in the same country with me? One click on my phone, and a second later, she gets a notification on her mobile app saying the money has reached her account.

But sending money internationally is a whole different ballgame. When I transfer funds to my mother in India, it can take several days for her to receive the money. This delay and the uncertainty about exactly when the funds will arrive cause significant anxiety for both of us. And then there’s the cumbersome way we make these international payments. I’m always nervous as I key in the long International Bank Account Number and other details, fearing a typo may misdirect that payment.

This simply isn’t good enough for the millions of people scattered around the globe making great personal sacrifices to make ends meet for loved ones far away. They deserve a quicker and easier system to send money home, and that’s why Mastercard has been harnessing its digital capabilities, vast reach and deep relationships to bring the ease and simplicity of domestic payments to international remittances.

Mastercard Move, our portfolio of money movement solutions, enables fast, trackable, and cost-efficient transfers to nearly 10 billion endpoints worldwide — including bank accounts, cards, mobile wallets and cashout locations — in more than 200 countries, reaching more than 95% of the global banked population. We are constantly working with our partners to make it quicker and simpler for people to send and receive money around the world.

As part of this work, later this year, we’ll be piloting what are called “alias-based remittances,” where all senders will need is the email address or phone number for the recipient to securely send money to directly to their bank account. We’re leveraging our strong relationships in markets including Bangladesh, Philippines, Kenya, China and Mexico to bring this capability to life.

When money moves this easily and securely, it creates peace of mind and advances financial security in individual families. It unlocks opportunities, catalyzes resilience and strengthens economies. It moves millions forward.