Digital remittances transaction is becoming increasingly popular, as it is more convenient and often less expensive than traditional methods such as wire transfers. In addition, digital remittances offer several sustainable development benefits.
Benefits of Digital Remittances
Digital remittances offer several development benefits, including:
Perhaps the biggest benefit of digital remittances is the convenience factor. With traditional methods such as wire transfers, the sender and recipient must be available simultaneously (during business hours) to complete the transaction. This is not the case with digital remittances, which can be sent and received 24/7. In addition, many digital remittance platforms offer mobile app versions that allow users to send and receive funds on the go.
Filipinos are starting to migrate to Australia to live permanently or for work. According to a Census, there are now approximately 220,000 Filipinos in Australia, making the Philippines the fourth largest source of skilled temporary workers.
The most convenient way for workers to send money from Australia to Philippines is through digital remittances that their families can receive anytime and anywhere. Digital remittances have been a friend to migrant workers. Before digital remittances, they had to send their earnings through physical cash or cheques, which can be expensive and dangerous.
They can send their money home quickly, easily, and cheaply with digital remittances. In addition, many digital remittance platforms offer mobile app versions that allow users to send and receive funds on the go. Convenience is sustainable because it benefits current providers and recipients without compromising the ability to meet future needs.
Another big benefit of digital remittances is the speed with which they can be completed. In most cases, the funds are available to the recipient almost immediately-often within minutes. This significantly improved over traditional wire transfer methods, which can take days to process.
Speed contributes to sustainability by reducing the time needed to send and receive payments, freeing up resources for other uses. The reduced time of digital remittances also means that migrants can send money home more frequently, which can help smooth out income fluctuations and make life more predictable for families back home.
Digital remittances also tend to be less expensive than traditional methods. This is partly due to the lack of need for physical infrastructure (e.g., brick-and-mortar banks or money transfer offices) and lower labor costs. In addition, many digital remittance platforms offer discounts and promotions to users, further reducing the cost of transactions.
This is sustainable because the lower costs of digital remittances free up more money for families to spend on other needs such as food, housing, and education. This also means more money is available to send back home, which can help reduce poverty and inequality.
When sending money electronically, security is always a top concern. However, digital remittance platforms use state-of-the-art encryption technologies to protect users’ information and safeguard against fraud. In addition, most platforms offer buyer protection policies that cover users if something goes wrong with a transaction.
This contributes to sustainability by providing a safe and secure way to send and receive money, which builds trust and confidence in the system. This also helps ensure that users’ hard-earned money is not lost to fraud or theft, making it more likely that they will continue to use digital remittances in the future.
The Downside of Digital Remittance
There are a few potential downsides to digital remittances that should be noted.
Digital Remittances are the Future
Despite these potential drawbacks, digital advantages of digital remittances make them well-suited to meet the needs of modern life. They are fast, convenient, and secure-all while being more affordable than traditional methods. For these reasons, digital remittances are poised to play a big role in the future of money transfers.
The Bottom Line on Digital Remittances
Digital remittances offer several sustainable development benefits, including convenience, cost-effectiveness, and security. As the world becomes increasingly digitized, it is likely that this type of transaction will only become more popular. For business owners and entrepreneurs looking for a more efficient way to send and receive payments, digital remittances are worth considering.