The average cost of sending remittances has decreased gradually over the years, but still remains too high to meet target 10.c of Sustainable Development Goal 10. According to the World Bank. The global average cost of sending 200 USD in 2020 was 6.5 per cent--more than double the SDG target of 3 per cent.
Average remittance costs were the lowest in South Asia (4.9%); Sub-Saharan Africa continued to have the highest average cost (8.2%).
Though not without risks, sending remittances through mobile money platforms or digital currencies has been considered among experts as one way to lower the cost of sending money home, as it reduces and even eliminates fees charged by intermediaries such as financial institutions and money transfer operators. According to the World Bank, there was a shift to sending remittances through mobile money platforms during the Covid-19 pandemic.
