This blog explores how much money migrants send home, breaking down global and regional flows, migrant behaviors, international money transfer costs, and the growing role of fintech in remittance corridors, particularly in Africa. We reveal that migrants channeled nearly US$865 billion globally in 2023, funds that underpin family budgets, national accounts, and development agendas, according to the World Bank Group. Moreover, we detail regional trends from US$189 billion to South Asia to US$54 billion in Sub-Saharan Africa while analyzing fees, channels, and policy challenges that shape every transaction.

Global Remittance Trends

In 2023, officially recorded remittance flows to low- and middle-income countries (LMICs) reached US$656 billion, up 0.7% from 2022, while total global remittances, including high-income country flows, reached US$865 billion. Looking ahead, the World Bank projects remittances to LMICs will climb by 2.3% in 2024, hitting US$685 billion despite uneven regional growth​. According to the International Organization for Migration, migrants worldwide sent US$831 billion in personal transfers in 2022, a testament to the resilience of cross-border family support in the face of global economic headwinds.

Regional Breakdown of Remittance Flows

Sub-Saharan Africa

Remittance inflows to Sub-Saharan Africa totaled US$54 billion in 2023, a slight 0.3% decline from 2022, yet they remain a lifeline for economies grappling with food insecurity, droughts, and debt crises​. Nigeria alone accounted for 35% of that total, approximately US$19.5 billion, while Ghana, Kenya, and Senegal each received between US$2.9 billion and US$4.6 billion​.

South Asia

South Asia remained the largest regional recipient, with remittances rising 5.2% to US$186 billion in 2023, led by India at US$125 billion. Propelled by robust labor markets in the US and Europe, South Asia remained the largest regional recipient. Pakistan, Bangladesh, and Sri Lanka also saw significant inflows, underscoring the critical role of migrant earnings in household incomes.

Latin America & the Caribbean

Remittances to Latin America and the Caribbean grew 8% to US$156 billion in 2023, driven by a strong US labor market and rising migrant wages​. Mexico topped the list with US$63.3 billion, surpassing oil and tourism revenues, while Guatemala and Honduras each received US$19.8 billion and US$9.2 billion, respectively.

Middle East & North Africa

By contrast, remittances to the Middle East and North Africa fell 15% to US$55 billion in 2023, largely due to exchange-rate disparities in Egypt that diverted funds to informal channels​. Recovery is expected in 2024 following exchange rate unification in March.

Migrant Remittance Behavior

On average, migrant workers remit US$200–300 every one to two months, roughly 15% of their earnings, a sum that can constitute up to 60% of a recipient household’s income​. Furthermore, while large transfers exceed US$1,000, most transactions are under US$200, meaning senders often incur higher fee percentages on smaller amounts.

Channels for Sending Money Home

Migrants rely on a mix of formal and informal channels to send money home. Banks remain the costliest, averaging 12% fees per transfer, whereas money transfer operators (MTOs) charge around 5.5%, and mobile-money services average 4.4%, though they still account for less than 1% of total remittance volume. In the UK, the average cost to remit £120 was about 6% in early 2024, with corridors to Pakistan among the cheapest at under 1% via bank transfer.

Cost of International Money Transfer

High fees erode the value of remittances. Globally, sending US$200 costs an average of 6.7% in late 2023, up from 6.4% the year before​. Costs vary widely: Sub-Saharan Africa averaged 7.9%, Latin America 6.1%, and South Asia 4.3% per US$200 sent​. Fee reduction remains a UN SDG target (3% by 2030), yet most corridors exceed this goal.

Impact on Recipient Economies

Remittances buy consumption, education, and healthcare spending. In over 60 countries, remittances account for more than 3% of GDP, and in small states like Tonga, they reach 41% of GDP​. In Sub-Saharan Africa, remittances stabilized current accounts amid climate shocks and debt pressures​. Meanwhile, Mexican households reported that remittances surpassed all other foreign exchange sources, including oil and tourism​.

Fintech’s Rising Role in Money Transfer

Digital platforms are reshaping remittance corridors. Fintech for remittances, such as Wise, Revolut, and NALA, offer mid-market rates, low upfront fees, and real-time tracking for international money transfer, positioning themselves as the best app to send money for both personal and SME users, ​migration data portal.org. In Africa, mobile money networks like M-Pesa and Moniepoint harness smartphone penetration to expedite money transfer in Africa at reduced costs​.

Challenges and Risks

Despite digital advances, informal channels persist due to regulatory barriers, user distrust, and limited financial literacy. Exchange-rate volatility further complicates planning for both senders and recipients. Moreover, uneven access to digital ID and banking services in origin and destination countries can push migrants toward cash-based, unregulated methods, raising fraud and compliance concerns.

Outlook and Policy Implications

Remittance growth is forecast to strengthen in 2024-25, reaching US$905 billion globally and US$685 billion for LMICs, driven by wage disparities and digital adoption​. Policymakers must prioritize lowering transfer costs, expanding digital infrastructure, and harmonizing regulatory frameworks to channel funds through safe, transparent systems. International cooperation, especially among Commonwealth and African Union members, can foster interoperable payment rails and reduce reliance on cash.

Conclusion

The amount migrants send home is more than a statistic—it's a barometer of global economic interdependence, social resilience, and technological innovation. As remittance flows near US$900 billion, the imperative is clear: reduce costs, bolster digital channels, and protect the financial lifeline for millions.

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