According to the World Bank Group, remittances sent by migrants to their home countries grew by 5% in 2022, reaching a total of $626 billion. This is great news for families and communities around the world who rely on these funds to meet their basic needs and achieve their financial goals. However, delayed payments and a lack of alternative payment solutions continue to be major issues for remittance consumers, causing frustration and financial stress.
For many remittance senders, delayed deposits can cause significant anxiety and inconvenience. For instance, a sender may need to urgently send money to a family member or business partner who needs it for emergency medical treatment or to complete a business deal. However, if the deposit is delayed in the first leg of the remittance journey, the intended recipient may not receive the money in time, causing undue stress and complications.
Moreover, many remittance consumers face a lack of payment solutions for deposits. Often, they have to rely on traditional payment methods such as batch payments, which are only processed a few times a day during banking hours. This can lead to frustration and dissatisfaction with the remittance provider, especially on holidays and weekends.
To address these issues, there is a growing demand for more options in the remittance industry. Consumers are looking for payment solutions that are faster and more secure. In response, remittance providers are bank-account-based payment solutions as the first leg of a remittance transaction.
Bank-account-based payment solutions, such as Paramount Commerce’s INTERAC® product, provide multiple benefits for remittance consumers. Transactions made through Paramount Commerce INTERAC solution are real-time, which helps in speeding up the consumer’s deposit journey while also eliminating issues linked with delayed payments and chargebacks from traditional methods. Most Canadian consumers are familiar with Interac e-Transfers and would prefer to send money to deposit their funds. With over a million active customers, Paramount’s INTERAC simplifies the deposit process for consumers, benefiting remittance merchants from growth in consumer loyalty and a rise in acquisition efforts.
In conclusion, international remittance is set to be an industry that will keep growing year by year. However, with its growth, innovation, and new technologies will be needed to provide a seamless remittance journey for consumers. One of the key areas to simplify the consumer experience is through payments. With the right payment solutions, remittance consumers can enjoy faster and more efficient remittance transactions, benefiting both them and merchants.