Many people stay away from home in faraway countries. They go abroad for many occasions like education, work, marriage, etc. There is lots of requirement for finance, no matter where a person goes around the world. Without adequate financial support, there is no facility. In this world, everybody needs money to survive, especially those whose children are settled abroad.
The term ‘remittance’ is derived from the word ‘remit’ which means ‘to send back’. It is an amount of money transferred or sent from one party to another, usually residing overseas. They can be personal money transfers made to family, friends and even businesses.
Nowadays, there is an increase in their transfers. Two factors are responsible for it:
- Migration: Many people are travelling abroad for working or settling there permanently. They send some money to their families in their home countries so that they can earn a living. Many people living abroad are supporters of their families. Hence, they ensure that there is no financial shortage.
- Globally connected businesses: The internet has made it easier for companies to connect and collaborate with clients, suppliers, and employees all around the world. It has resulted in a sharp increase in the number of remittances sent overseas for business invoices.
How are they sent?
There are several methods for outward remittance:
- Wire transfer
- Cash pick up
- Mobile money
- Electronic payment
- Bank draft
The cost for the same depends on the provider and the service that is chosen. Generally, banks charge high fees and provide reduced exchange rates on them. There are many offline companies like Western Union, MoneyGram, etc. But, with the entry of the internet, many online companies are also providing similar services.
What are its advantages?
Online money transfer is no more new or fresh concept for today’s generation. Every person, right from students to adults are quite aware of it. Cash return can help in instant access to money in a short time and also support transfers from one place to another. Most of the e-business dealings and offers from essential companies operate on this cash return principle.
People facing a shortage of funds during company offers, emergencies, holiday trips, and many other circumstances, can use this facility.
Following are the advantages of international money transfer:
Money return can be done immediately and prepared within one or two days of service to manage the financial situation.
- Security and privacy:
There is an immediate verification of the cash that is sent and received. The comfort is managed independently.
- Flexibility and convenience:
The cash is transferred within a matter of minutes, thus making it easier for sending money orders and payments to people living in other countries.
- Good exchange rate:
Users get the benefits of existing foreign currency prices of the country and the lender. Remittance is a boon to the whole world as well as the home country of the person living overseas.