# The Global Benefits of Online Transfers 
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-11-05
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: Online Money Transfers: The Revolution During COVID-19
Meta Description: Discover how the combination of evolving technology and COVID-19 restrictions have led to a revolution in online money transfers with WorldRemit. Learn more
URL: https://financedigest.com/the-global-benefits-of-online-transfershtml

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_By **Karen Jordaan,** Head of UK at WorldRemit_

A combination of rapidly evolving technology and the restrictions imposed by the COVID-19 pandemic have seen what is nothing short of a revolution in the online money transfer sector.

With harsh social distancing governing people’s movements and warnings from the World Health Organisation (WHO) that cash is potentially a petri dish for the virus, it’s no wonder that those from all walks of life have been making a move towards the new contactless methods of payment.

According to [ReportLinker](https://www.reportlinker.com/p06151613/Digital-Payments-Global-Market-Report-COVID-19-Growth-And-Change-To.html?utm_source=GNW), this movement has been truly significant at all levels of society, with users taking advantage of the rapidly evolving technologies of mobile wallets and contactless cards to make payments and move their money around the globe. This [consumer behaviour](https://www.financedigest.com/gumgum-powers-into-europe-as-new-research-shows-consumers-reject-behavioural-ads.html "GumGum Powers into Europe as New Research Shows Consumers Reject Behavioural Ads") is not just because of the disruption caused by the pandemic but also a result of the simplified user experience these new devices provide.

For many in western society, the acceleration in [technology makes for an easier and more convenient experience when dealing with digital](https://www.financedigest.com/digital-technology-and-startups-during-a-recession-how-to-stay-afloat.html "Digital Technology and Startups During a Recession — How to Stay Afloat") remittances. However, for those citizens of emerging countries, the innovation and growth surrounding the global [payments sector](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector.html "Combatting economic uncertainty in 2023 with the payments sector") is resulting in a range of widespread benefits.

**Digital Remittances Are A Lifeline**

The [world relies on migration to keep](https://www.financedigest.com/soccer-englands-houghton-will-keep-knocking-the-door-for-the-world-cup.html "Soccer-England’s Houghton will keep ‘knocking the door’ for the World Cup") its workforces populated. In turn, the working migrant community relies on [international remittances in order to provide financial](https://www.financedigest.com/the-hidden-financial-woes-of-international-students-heading-for-the-uk.html "The Hidden Financial Woes of International Students Heading for the UK") aid to their families and friends back home.

These digital money transfers are a lifeline for the recipients, but on a wider level they contribute to the [economic buoyancy of many regions globally](https://www.financedigest.com/global-economic-crisis-strangling-progress-for-poor-warns-u-n-development-chief.html "Global economic crisis strangling progress for poor, warns U.N. development chief"). In 2019, remittance [flows to low-](https://www.financedigest.com/analysis-russian-gas-flow-too-low-to-fill-europes-storage.html "Analysis – Russian gas flow too low to fill Europe’s storage") and middle-income countries topped £403 billion ($554 billion). Notably, flows in Central Asia and Europe (Ukraine in particular) [all demonstrated strength](https://www.worldbank.org/en/news/press-release/2020/04/22/world-bank-predicts-sharpest-decline-of-remittances-in-recent-history).

Examples of this trickle-down effect can be seen at the United Nations, where international remittances have contributed to achieving 12 out of the 17 Sustainable Development Goals. It is also argued that a 10% increase in per capita remittances leads to a 3.5% [reduction in poverty](https://www.un.org/en/observances/remittances-day/SDGs).

With statistics like that, it is essential that adequate [systems are in place to make sending money](https://www.financedigest.com/money-laundering-made-easy-by-uk-financial-system.html "Money laundering made easy by UK financial system") abroad a secure and simple procedure. [Online money](https://www.financedigest.com/best-ways-to-make-money-online.html "Best ways to make money online") transfers help countries gain financial inclusion in emerging markets, thus improving economic development and alleviating poverty.

**Banking For The Unbanked**

Until very recently, migrant [communities faced](https://www.financedigest.com/talk-to-me-the-changing-face-of-customer-communications.html "TALK TO ME :THE CHANGING FACE OF CUSTOMER COMMUNICATIONS") a number of stressful challenges when sending money abroad. Long queues, unfamiliar paperwork, and sky-high fees were normal hurdles at the [beginning of a transfer that could end](https://www.financedigest.com/where-does-your-travel-policy-end-and-gadget-insurance-begin.html "Where does your travel policy end and gadget insurance begin?") up taking weeks to process. Once the money had finally reached its destination, the recipients would then need [access to banks or shops to collect their cash](https://www.financedigest.com/supporting-a-fair-and-resilient-society-by-protecting-access-to-cash.html "Supporting a fair and resilient society by protecting access to cash ").

Today, with digital payment services like [WorldRemit](https://www.worldremit.com/), people can receive money in a matter of minutes in the form of bank transfers, airtime top-up, cash pick up and transfers to their mobile wallets.

These options that allow people to [choose how to receive their money](https://www.financedigest.com/mistakes-to-avoid-while-choosing-a-private-money-lender.html "Mistakes To Avoid While Choosing a Private Money Lender") are particularly important in sub-Saharan Africa, where a big proportion of the population remains unbanked.

Fortunately, this choice is facilitated by a boom in [cheap and widely available smartphones that allow consumers](https://www.financedigest.com/from-burgers-to-bleach-stressed-consumers-buy-cheap.html "From burgers to bleach, stressed consumers buy cheap") and small enterprises to seamlessly transfer money at the touch of a button. Aided by FinTech vision and investment, Africa has been transformed into a [world leader](https://www.financedigest.com/world-leaders-to-attend-queen-elizabeths-funeral.html "World leaders to attend Queen Elizabeth’s funeral") in mobile money. Again, the economic upshift facilitated by the new technology has contributed to a drop in the number of households living in poverty.

**A Safe and Convenient Service**

WorldRemit uses industry-leading technology to enhance [protection for online](https://www.financedigest.com/uk-opposition-calls-for-better-online-protections-for-children.html "UK opposition calls for better online protections for children") money transfers. This technology is also swift, meaning that the majority of [transfers are ready](https://www.financedigest.com/is-the-world-ready-for-the-greatest-wealth-transfer-in-history.html "Is the world ready for the greatest wealth transfer in history?") within minutes.

The increase in [secure digital](https://www.financedigest.com/what-banks-need-to-do-right-now-to-improve-their-digital-services-without-sacrificing-security.html "What Banks Need to Do Right Now to Improve Their Digital Services Without Sacrificing Security ") remittances, especially mobile-to-mobile transfers, has lowered the need for cash transactions. As a consequence, opportunistic crime in many cash-heavy markets has been reduced, however cybercrime remains a very present threat, which [money transfer companies must work hard to combat](https://www.financedigest.com/working-with-both-human-ai-and-graph-technology-to-combat-money-laundering.html "Working with Both ‘Human’ AI and Graph Technology to Combat Money Laundering").

**Moving Forward Together**

The transition to digital payments and online money transfers has already had a positive [impact on migrant](https://www.financedigest.com/brexit-might-impact-our-migrant-pool-magazine.html "“Brexit might impact our migrant pool.”-Magazine") communities and emerging countries. This transition has made the process of sending remittances easier and more secure. It has also lowered the barriers for financial inclusion in emerging countries by allowing people without [bank accounts](https://www.financedigest.com/new-legislation-makes-switching-bank-accounts-simples.html "New legislation makes switching bank accounts “simples”") to receive money with ease.

By [offering flexible](https://www.financedigest.com/britain-urges-banks-to-offer-mortgage-flexibility-in-cost-of-living-crisis.html "Britain urges banks to offer mortgage flexibility in cost-of-living crisis") ways of sending and receiving money, more people around the world will be able to access financial services and ultimately free themselves from the manacles of poverty.

Find out how WorldRemit can help you move your money around with [online digital payments](https://www.worldremit.com/).


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