COVID-19 impact on remittance habits to continue, says report

Research from WorldRemit, a leading global payments company, has found that people sending money from the United States, the United Kingdom and Canada have continued to adjust their remittance habits due to COVID-19 pandemic.

The results from WorldRemit’s study of more than 3,000 of its customers paint a striking picture of the importance of remittances to families of immigrants, alongside the impact it has on the global economy. About 68 per cent of respondents sent money abroad at least monthly while another 28 per cent send it multiple times a year.

The pandemic has had a significant effect on the amounts of money sent, particularly the reasons people send money abroad.

When asked to provide context to the reasons people send money to loved ones, the most common were daily expenses, gifts, medical expenses and education.

As a result of COVID-19, people sent more money abroad for the following categories during 2021 – 44 per cent cited the amount they send for medical expenses has increased; 41 per cent said the amount they send for daily expenses has increased. Also 38 per cent said the amount they send for utilities increased while 35 per cent pointed out that the amount they send for education increased.

The most common countries remittances sent by the respondents were Philippines (18 per cent), Nigeria (11.5 per cent) and Ghana (10.5 per cent).

The contributions to GDP growth of the countries were 4.5 per cent (Philippines), 1.5 per cent (Nigeria) and 5.1 per cent (Ghana). The report said this trend is likely to continue as countries continue to recover rapidly from the COVID-19 pandemic.

Head of UK, WorldRemit, Karen Jordaan, said: “We understand the unique challenges migrants face on a day-to-day basis when supporting loved ones overseas, whether it be helping to ensure their family members get access to medical care or have money to pay for basic cost of living expenses.

“WorldRemit understands the needs of our customers and strives to offer a safe, fast and convenient service. We are also encouraged by our customers and how they are investing in the future, namely education and new business ventures.”