Exercise Care While Conducting Remittance Transactions

Experts urge remittance recipients to exercise extra care while sending or receiving remittances during the busy season. Christmas is observed as the busiest time of year for remittance transactions. Expats are sending their care in the form of dollars to their loved ones via card transactions worldwide. Therefore, remittance recipients should be vigilant, whether collecting funds at an agent or accessing funds via a card transaction.

Christmas is usually a busy time for persons receiving remittances from abroad because most families send extra funds to Belgium from Congo to assist with family activities. Unfortunately, although they reduce their vulnerability when standing in lines since the pandemic, credit and debit card fraud remains a challenge. Therefore, the only option is to educate themselves regarding safe when conducting card transactions or using an ATM. The study revealed more card transactions because of the pandemic, with transactions almost doubling via that payment method.

Prepaid Card Market Expected to Reach $6.87 Trillion By 2030

There is an increase in demand for prepaid cards in remittances and a surge in need for cash alternatives. As a result, it leads to a rise in unbanked and underbanked population, driving the global prepaid card market. Researchers commented that North America held the largest share in 2020, accounting for more than two-fifths of the market. The Covid-19 pandemic expanded the remote working, and strict regulations regarding social distancing created several retail and corporate sectors for shopping, cash flow, and travel challenges.

Visa’s agreement with payment platform

Visa announced a new agreement with a payments platform to drive further cross-border and travel payments innovation. With the help of the partnership, Visa’s clients, banking, and fintech partners will now have the capacity to utilise the payments platform. Today, 1 in 5 payments is a cross-border transaction, whether from a consumer travelling internationally or buying from an international seller online. Therefore, the goal is to aid clients to meet the increasing demand for slick, simple and more convenient cross border payments. On the other hand, it makes it easy for Visa cardholders to handle their money when travelling.

Thus, the partnership empowers clients by offering an innovative, competitive, digital-first solution that ultimately gives consumers and cardholders more control over digital payments at home and abroad.

Many companies offer customers on-demand services such as multi-currency wallets and real-time notifications on foreign exchange transactions. Simultaneously, Visa’s account holders will better manage their travel abroad through improved visibility and control of their money. In addition, APIs give control and visibility of international transactions combined with the reach of Visa will allow a new generation of consumers to benefit from a better experience when spending abroad.

World Bank estimates a 7.3% jump in remittance this year

Regardless of the unabated social and economic pressures impacting job retention and income earnings from the pandemic responses, the World Bank is still forecasting a more than a meagre increase in remittance flows. It was predicted that it expects remittance flows to register a 7.3% growth in 2021 over last year. 

 World Bank reports that remittance transfers to Latin America and the Caribbean are foretold to increase by 21.6 percent year-to-date.

The projection amounts to a radical departure from an earlier one, signifying those remittances will drop by around 20% this year. The upward adjustment reflects the Bank’s readjustment of its earlier projections regarding the well-being of the remitters in the US.

Conclusion

The banks stated that the annual remittance flow to a new high of US$126 billion represents a 21.6 percent increase in remittance flows till 2020. At the same time, when compared to 2020, Mexico, the region’s largest remittance recipient, received 42 percent ($52.7 billion) last year. ATL Money Transfer provides fast and secure money transfers to Congo at reasonable prices. We are committed to strengthening our services worldwide, building affordable and efficient money remittance channels for our customers.

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