Mina Hamid, originally from Kabul, Afghanistan, and now residing in the Netherlands since the age of 11, recalls the first time she sent money to her family back home. “I was in my late teens, and Afghanistan was facing natural disasters and conflicts, making it difficult for my extended family to afford basic necessities. So I started sending 20 to 30 euros [$21 to $32] occasionally – money earned from my student job – to help them,” Hamid shared with Al Jazeera. Now 36 years old and living in Belgium while working for the European Union, she continues to send money to her family in Afghanistan every three months to support them.
Like Hamid, millions of migrants worldwide engage in sending money or in-kind transfers, known as remittances, to their families or communities in their home countries. The practice of remittances has significantly grown over the past two decades, reaching $831bn in 2022, according to the World Bank. The United States, Western European countries, and Gulf Cooperation Council countries like Saudi Arabia, Qatar, and the United Arab Emirates are major sources of remittance outflows to low and middle income countries.
The rise in remittances over the years can be attributed to factors such as the COVID-19 pandemic and the development of fintech platforms, which have made money transfers faster and more affordable. Governments and financial regulatory bodies have also created an environment to facilitate remittance flows, enabling excluded individuals to have bank accounts for easier money transfers.
For migrants like Manasse Massuama and Maria del Socorro Tejeda, sending remittances is a way to support their families and communities in their home countries. Despite the challenges of working multiple jobs in expensive countries with low wages, they continue to send money to help their loved ones. Remittances are sent through various channels such as cash, cheques, money orders, credit/debit cards, and digital platforms like Western Union, MoneyGram, PayPal, and Remitly.
While costs of remittances remain high, efforts are being made to reduce transaction fees to make money transfers more affordable. Advancements in technology have made digital transfers a more cost-effective option compared to traditional methods. Platforms like Western Union and Moneygram have made it easier for migrants to send money quickly and securely to their families.