Mobile apps have become the force that has changed how money is sent and received. Modern mobile apps allow any person to send money abroad in minutes, thus combining the features of an online remittance solution.
The Growing Importance of Mobile Remittance The conventional remittance method used to involve visiting a bank or money transfer agent, completing some paperwork, and having to stand in long lines. This was not only inconvenient, it was also associated with high service fees and long delays. With the emergence of the mobile technology, this process has taken a new dimension. Now a labourer in one nation can transfer money to his family in another nation via a smart phone in real-time or even in an instant.
Mobile-based transfers have democratized the provision of financial services as smartphones are becoming more affordable and internet connectivity penetrates even the most remote regions. Now they are already a vital component of international migration and international labour markets, millions of people are relying on effective money transfers to survive.
How Mobile Apps Simplify Remittances Mobile application platforms combine the underlying capabilities of "remittance software" into a friendly user interface. Rather than going through the complicated banking system, the user can download an app, create an account with simple identification particulars, and begin transferring money in just a few minutes. Other apps go a notch higher and enable users to add several payment options like debit cards, credit cards, or digital wallets, which offer them more freedom.
The accessibility is one of the largest benefits of mobile apps. They work round the clock, and therefore no longer do users have to depend on the working hours of banks. Most applications also have an inbuilt currency conversion, so senders can actually see how much the receiver will receive in their native currency.
Speed and Convenience Speed is paramount as far as remittances are concerned. Families tend to use them to cover short-term food, housing and hospitals. In most corridors, mobile applications running on sophisticated remittance software products allow transferring funds almost instantly. An example is when an individual in Europe transfers money to Africa, the transfer takes a few minutes rather than days.
This has been achieved by collaboration between mobile remittance providers, local banks and mobile money operators. Mobile applications avoid the delays that are experienced during the use of traditional intermediaries by bridging the gap directly to the local payout networks. Not only does this make the transfer process quicker, but also reduces the costs.
Lower Costs and Greater Transparency Migrant workers have long had to put up with high transfer fees since sending small sums home on a regular basis. This is being challenged by mobile-based digital remittance solution platforms that can provide competitive exchange rates and reduced fees. Lots of applications as well offer upfront fee disclosures so that the user is aware of the amount he or she is paying and the amount his or her loved ones will get.
These platforms reduce unnecessary intermediaries and charges, thus making remittances cheaper, thereby enabling more funds to be sent to families that rely on remittances. This change is more significant in areas where families avail themselves mainly on remittances.