According to Visa's most recent Money Travels: Digital Remittances Adoption study for 2024, digital apps are the go-to method for international money transfers for over two-thirds of remittance consumers.

Furthermore, because they have no problems, remittance users who send and receive money internationally do it online. Of the 45,000 remittance consumers Visa polled, almost 43% said they never have issues with sending or receiving money.

The disparity in satisfaction percentages between customers who still send and receive tangible remittances such cash, cheques, and money orders is striking. Approximately 76-77% of those who utilize physical remittances report problems sending and receiving money in this manner.

Visa: Electronic funds transfers are essential for prompt humanitarian aid

In the modern world, remittance problems are more than just a minor annoyance. According to Visa's analysis, the main reason why remittances are sent on the send side is to support humanitarian causes, which is a lifesaver for millions of migrant workers and their families.

In light of recent global events, it is crucial to improve the lives of those in need, and using remittances is the key to getting money to those in need. Thus, it's imperative to send and receive money without any problems, which is something that digital remittances may do.

"Migrant workers have shown incredible resilience over the past year to support families back home, but high inflation and slowing economic growth has impacted the frequency that they can send vital funds home," said Vira Platonova, Chief Revenue Officer, SVP, Global Money Movements at Visa.

"One of our goals with Visa Direct is to assist simplify cross-border payments and expedite the flow of money, opening up new avenues for financial inclusion and wealth accumulation.

"This new research demonstrates the amazing speed at which digital payments are accelerating, but the industry can still do more to make streamlined remittances accessible to more migrant workers and their families who depend on these vital payments."

A closer examination of money travel

According to Visa's market-by-market study, all markets except Saudi Arabia and the United Arab Emirates favored digital money transfers, and all markets' remittance customers chose digital money transfers.

Remittances to help those in need are most commonly used in APAC countries, according to reports. This includes Singapore (49%), Australia (49%), and India (52%), all of which report using remittances for humanitarian purposes. In Australia, 52% of respondents said they send money overseas to help humanitarian initiatives.

However, not all markets use remittances for the same reasons on the sender and recipient ends. In Latin America, 36% of Mexicans and 27% of Peruvians who send money say they do it to help family members who are facing unforeseen expenses; in Brazil, 37% say they send money to maintain accounts and investments.

Remittance customers have less issues with digital money transfers, while 36 percent of physical users say they have encountered hidden expenses.

Of all the nations surveyed, the top remittance recipients were Brazil, India, Mexico, Peru, the Philippines, and Poland, while the top senders of money were Australia, Canada, China, Denmark, France, Germany, Norway, Saudi Arabia, Singapore, Sweden, United Arab Emirates, the United Kingdom, and the United States.

In order to facilitate effective money movement through digital remittances, Visa collaborates with international remitters and enablement partners including Brightwell, Thunes, Remitly, Western Union, and Asia United Bank (AUB).