Research for the Department for International Development into remittance payments by migrant workers in the UK shows a huge and growing market.
The main barrier to additional remittance payments being made is the lack of a financial ability to do so. Transaction costs are sometimes cited as an additional barrier.
Excluding ‘free’ remittances linked to family and friends personally delivering money, the average transaction costs are £12.80. High street banks charge the most, followed by the Post Office.
Respondents stated that a reduction of 50% in costs could induce them to increase remittances by up to 10%, while an increase in their income by 50% could induce them to increase remittances by up to 17%.
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