* Demand for remittance services grows as more UK adults transfer
money across borders
* Our connections with those overseas are stronger than ever according
to data from the ONS
* Traditional banks are facing a backlash from consumers unwilling to
tolerate high fees – typically between 5-8%
According to the global money transfer firm, Xpress Money, thousands of UK
adults have transferred funds overseas, typically between family members.
International money transfer, a consumer market worth an estimated £400
billion globally, continues to grow and is now a routine utility for many.
According to the ONS, the number of visits abroad to see friends or family
grew 7.8% in 2014 on the previous year whilst visits to the UK for the same
reason, grew by 4.8%[1]. Meanwhile, emigration remains steady since 2009
with an estimated 323,000 people emigrating during last year[2]. Many of
these emigrants are British people leaving the country for a life elsewhere.
Xpress Money has compiled the top six reasons for international money
transfer – a financial stream worth an estimated £15billion in the UK.
Top 6 reasons for international money transfer (UK market):
1. Family & friends – With our friends and family increasingly spread
out across the globe – international money transfers are hugely valuable in
a variety of situations – from emergencies to one-off gifts and regular
financial support.
2. Property – Due to the large sums involved when buying or selling
property abroad, fees and exchange rates are a serious consideration.
Whether you’re investing in a home away from home or making a fresh start,
shop around for the best deal and be sure not to lose out.
3. Paying bills – Fixing the exchange rate and setting up a scheduled
payment can be an easy way to make sure utility bills or other regular fees
are paid on time whilst you’re abroad.
4. Salary transfers – Whether it’s on a regular basis or just when you
need it, international money transfers can be a simple way to send money
home if you work overseas.
5. Pension transfers – Making full use of your retirement is easier
than ever when you can use international money transfer services to get
access to your pension whilst you are out of the country.
6. Emigration – Life can take you anywhere but if you are looking to
relocate overseas, ensuring your money travels with you is a priority.
Recent findings from Juniper Research found the number of mobile money
transfers is set to increase by 150 per cent in 2015 to more than 15
billion. Innovation is driving the global remittance market with new mobile
platforms such as XOPO delivering convenient and secure methods of transfer
via social channels.
XOPO, available from December, is a global platform which will enable
payments across social networks and messaging apps. The UK will be the first
market in the world from which users can send money internationally, across
popular social networks. The app charges a flat fee of £2.99 on money
transfers, no matter if you are sending £300 or £3000.
Social integration of money transfer will enable family and friends to
transfer money to anyone from anywhere and at any time of the day, creating
a global money transfer service that eclipses the versatility of banks.
Traditional banks are facing a backlash from consumers unwilling to tolerate
high fees. Banks typically charge between 5-8% in remittance fees which can
equate to huge sums of money.
Sudhesh Giriyan, Chief Operating Officer at Xpress Money said, “Money
transfer is a vital utility for families across the globe and the banks have
failed to keep pace with demand. In many cases, funds being transferred are
sent by low-paid workers seeking to assist family members in their native
countries. Sums transferred are often relatively small and it is
extraordinary that some businesses in our sector should be able to charge
the fees that they do. It’s time for change.”
He added: “Our current range of services includes Cash Payouts, Account
Credits and Mobile Money across a variety of channels. We are one of the
most competitive when it comes to rates and fees. The global industry
average of sending remittances is 7.6%, while the global average remittance
costs of Xpress Money stands at 2.09%.”
Established in 1999 in the United Kingdom, Xpress Money is one of the
fastest growing money transfer brands in the world. The business has spread
its geographical presence across 150 countries over the last 15 years.
Xpress Money currently offers money transfer services through 170,000
locations worldwide. The UK is the fourth largest international ‘send’
market, after the US, Saudi Arabia and the United Arab Emirates, with cash
outflows estimated at over US$25 billion a year, including US$3.7 billion to
Nigeria and US$3.6 billion to India (Source: World Bank Report 2014).
