Bitcoin Remains Cheapest Cross-Border Money Transfer Solution Despite Reduced Remittance Fees

By January 12, 2016Bitcoin Business

Bitcoin Remains Cheapest Cross-Border Money Transfer Solution Despite Reduced Remittance Fees. newsbtc Bitcoin is often touted as the long-awaited answer to expensive remittance solutions, such as Western Union and MoneyGram. Sending money overseas is a very costly manner, even when using bank transfers, But a recent report published by The World Bank shows how remittance transfer fees have started to decrease slowly throughout December 2015. Decreasing Remittance Fees Are A Positive Sign

When one tries to send money around the world, it is important to take the associated fees into account. Convenience comes at a fairly steep price in the remittance world, and fees can amount to double digits rather quickly. That being said, there is an increase in the number of both sending and receiving countries worldwide, indicating a lot of people are still using these services despite the costs.

At the same time, the costs associated with remittance seem to be decreasing. Based on the report published by The World Bank, the average cost of sending a remittance transfer sat at 7.37%, which is a decrease from the previous level of 7.52%. On paper, this may not amount to much, but it’s a small step in the right direction.

Furthermore, most country corridors now offer options to send money around the world at a cost of less than 10% of the total amount. Exact numbers were not provided in the report, although there are now more countries where sending money has become cheaper. That being said, less than ten percent can still mean numbers of 9% or higher, which is still far from cheap.

To put this into numbers anyone can understand, a US$500 remittance transfer to the other side of the world will cost – on average- US$36.85. However, based on the sender’s location, that cost can be […]

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