Croatia Standing as the Least Expensive Destination for Remittances in 2023
Affordable Remittance Markets Revealed in Global Analysis
A comprehensive analysis of the consumer remittance pricing dataset on a leading platform has identified the top low-cost global markets for remittances in 2023. The study, which tracks remittance pricing data on a global scale, encompassing over 700 providers and more than 110 countries, offers valuable insights into cost-efficient remittance transfers.
According to the findings, Croatia emerged as the lowest-cost market to receive remittances globally in 2023. This achievement can be attributed to several factors, including the transition of Croatia to the euro at the start of the year, which eliminated FX margins between the eurozone and Croatia for most remittances. Additionally, stable transfer fees for all corridors globally contributed to Croatia's position as the most affordable destination.
El Salvador also ranked highly as a low-cost market due to most flows into the country being sent USD to USD. This, coupled with the lack of FX margins, helped to keep costs low.
Despite an increase in average pricing, Ukraine still ranks as the 18th lowest-cost destination for remittances. Geopolitical developments can impact pricing, with Ukraine seeing a drop in 2022 due to promotional pricing changes and a subsequent increase in average pricing by 2023.
The platform's consumer remittance pricing dataset is capable of identifying the cost efficiency of remittance markets. Key factors contributing to low remittance costs in these markets include digital remittance adoption, the use of blockchain and cryptocurrencies, competitive money transfer operators, and market-specific factors.
Digital channels cost 5% on average globally, compared to 7% for non-digital methods, making them a more cost-effective option. The use of blockchain and cryptocurrencies reduces reliance on intermediaries, lowers transaction times, and increases transparency, all contributing to lower costs. In popular corridors, competitive money transfer operators typically charge lower fees than banks, making selected corridors more affordable.
Regions such as Latin America, parts of Asia with strong digital remittance penetration, and some G20 countries show relatively lower costs compared to the global average. However, many markets, especially in Sub-Saharan Africa and countries with exchange rate volatility, still experience high remittance costs above the global average.
Romania was found to be a low-cost market due to around half of the services tracked to Romania having EUR as the receiving currency, instead of RON. Changes to FX margins and geopolitical developments can greatly affect which countries cost the least to send remittances to.
The platform's remittance pricing dataset is live and historic, providing up-to-date and historical pricing information. This valuable tool for understanding the cost dynamics of sending remittances globally will continue to track the lowest-cost remittance markets over the coming year.
1) The pricing dataset, within the context of finance and business, reveals that Croatia emerged as the globally lowest-cost market for remittances in 2023, due to factors like its transition to the euro and stable transfer fees.
2) In the analysis of remittance prices, digital channels in regions such as Latin America, certain parts of Asia, and some G20 countries were found to be relatively lower cost compared to the global average, owing to digital remittance adoption, blockchain usage, competitive money transfer operators, and market-specific factors.
