Global cost of remittance fees

The global average rate is 7.14%, but it really depends if you're looking by country, type of provider, or form of payment.

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Global average

According to the World Bank, 574 Billion USD was sent in remittances globally in 2016. But how much is taken out in fees for sending this money? The global average rate for sending $200 was 7.14% as of Q3 of 2017. This has gone down by 1.47% from Q2 and 21.83% since Q3 2012.

Key points:

  • Total remittances worldwide in 2016: 574 Billion USD
PeriodGlobal average rate to send $200Percentage change
Q3 20177.14%N/A
Q2 20177.25%-1.55%
Q3 20129.10%-21.55%

Average rate in countries

Commission rates are affected by the country that you are sending to or from

While the global average rate is 7.14%, this rate will change depending on the country you are sending money to or from. This is due to regulations, taxes and international relations.

Select the relevant year/s you are interested in from the below filter on the right and hover over a country to see their historical rates. Values are averaged over the time period selected in the ‘Year’ filter.

Remittance commission rates in the G8 countries

The below graph illustrates how the average rate of remitting from G8 countries have changed over time.

Key points:

  • Biggest increase/decrease since last quarter
CountryQ2 average rateQ3 average ratePercentage change
Russian Federation1.78%2.13%19.91%
United Kingdom7.58%7.04%-7.08%
  • Biggest increase/decrease since Q3 2012
CountryQ3 2012 average rateQ3 2017 average ratePercentage change
France13.46%6.46%-51.99%

What about the average cost of remitting from G20 countries?

As of Q3 2017, the average fees for sending money from Australia, Canada, Germany, Japan and South Africa are above the global average.

Select the relevant period/s you are interested in from the below filter on the right. Values are averaged over the time period selected in the ‘Period’ or ‘Year’ filter.

Key points:

  • Biggest increase/decrease since last quarter
CountryQ2 average rateQ3 average ratePercentage change
Brazil3.47%4.64%33.70%
Korea, Rep.5.42%4.81%-11.30%
  • Biggest increase/decrease since Q3 2012
CountryQ3 2012 average rateQ3 2017 average ratePercentage change
France13.46%6.46%-51.99%

Breaking it down by the region of the world

As of Q3 2017 the cheapest region to remit to is South Asia at an average rate of 5.45%. In contrast, the most expensive region is Sub-Saharan Africa at 9.12% whilst the global average is 7.14%.

Key points:

  • Biggest increase/decrease since last quarter
RegionQ2 average rateQ3 average ratePercentage change
Sub-Saharan Africa9.39%9.12%-2.90%
  • Biggest increase/decrease since Q3 2012
RegionQ3 2012 average rateQ3 2017 average ratePercentage change
Latin America and Caribbean8.02%5.81%-27.60%

The method of transfer makes a huge difference

Banks are and have always been by far the most expensive method to remit money compared to money transfer operators (MTO) and post offices when comparing Remittance Service Providers (RSP). Even so, we have seen bank rates decrease over the last few years. On the other hand, post office rates have been increasing.

Key points:

  • Changes since last quarter
RSPQ2 average rateQ3 average ratePercentage change
Bank10.84%10.82%-0.17%
MTO6.26%6.16%-1.58%
Post office5.84%5.48%-6.20%
  • Changes since Q3 2012
RSPQ3 2012 average rateQ3 2017 average ratePercentage change
Bank13.53%10.82%-20.03%
MTO7.21%6.16%-14.51%
Post office5.45%5.48%0.60%

The method of sending money is another important factor of cost

The average cost of remitting money from a bank account is currently 8.56% as of Q3 2017. This is the only method above the global average of 7.14%.

Key points:

  • Biggest increase/decrease since last quarter
MethodQ2 2017 average rateQ3 2017 average ratePercentage change
Cash6.92%6.99%1.00%
Prepaid card3.82%3.65%-4.50%
  • Biggest increase/decrease since Q3 2012
MethodQ3 2012 average rateQ3 2017 average ratePercentage change
Prepaid card2.20%3.65%65.70%
Mobile money4.72%3.55%-24.80%

The form of payment on the receiving end also needs to be considered

The average cost of receiving funds from a bank account from 2011 to Q3 2017 is once again the most expensive method at 10.99%.

For media inquiries:

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Allan Givens
Public Relations Manager
203-818-2928
allan.givens@finder.com
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Nicole Gallina
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347-677-4931
nicole.gallina@finder.com
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