Foreign remittances

The definition of foreign transfers’

Foreign transfer is a transfer of money from foreign worker to their families or other persons in their countries. In many countries, translation is a significant part of the national gross domestic product , or GDP. The United States is the main source of foreign remittances, followed by Russia and Saudi Arabia. The main recipients of foreign remittances were India, China and the Philippines. In the G8 and the world Bank are trying to control and regulate money transfer costs because of the huge cash flow.

The penetration of the ‘foreign transfers’

According to many economists and social scientists, because remittances were so widespread, they have consequences that go beyond the finances of the individual. For example, after calming down includes financial institutions, people who send and receive remittances is likely to have a Bank account, which contributes to the development of the economy. Remittances can be lifesaving in emergency situations such as natural disasters and armed conflicts, when recipients ‘ other sources of income will disappear. Transfer payments are difficult to trace, and there is concern that they may be used in terrorist financing or money laundering.

Foreign transfers and new applications

Several startups have already developed applications to facilitate foreign remittances, making the process more user-friendly, as well as removing the high costs associated with some traditional formats such as MoneyGram and Western Union. Two such example transferwise and waves. Both apps charge relatively low fees and exist outside traditional banks. Based in London and working as a licensed and regulated financial institutions UK services., Transferwise began with, that to send money abroad is quite expensive, given the significant hidden fees. To eliminate extra fees transferwise uses real exchange rates only and charges a small fee for the use of its platform, which are well explained ahead of time. Transferwise was founded in March 2010, Taavet Hinrikus and Kristo Kaarmann. The Executive team had experience spanning start-UPS, international operations and financial services. Institutional investors transferwise to date include IA ventures, Index of businesses, Seedcamp and Kima ventures. Famous investors angels of the Virgin group, sir Richard Branson and founder of PayPal Max Levchin.

Wave has a similar model for transferwise, but specialized for the processing of remittances from the US, UK and Canada to Ghana and East Africa. Wave is able to facilitate the international transfer in 30 seconds from sender mobile to mobile recipient wallets. Wave has more than 100,000 customers on its website. Both waves and transferwise focused on financial Communications, the encryption of user data is safe and not vulnerable to hackers.

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