How Much Money Do Migrants Send Home? Insights into Global Remittance Flows 2025

Migrants worldwide play a vital role in supporting families back home. In 2023, they sent nearly US$865 billion globally, according to the World Bank Group, providing a crucial financial lifeline for households, national economies, and development agendas.

This guide examines how much money migrants send home, explores regional trends, remittance behaviors, international money transfer costs, and the growing role of fintech—particularly in Africa. It also highlights practical tips for maximizing transfers safely and efficiently with platforms like Famremit.

Global Remittance Trends

In 2023, officially recorded remittances to low- and middle-income countries (LMICs) reached US$656 billion, up 0.7% from 2022. Including flows from high-income countries, total global remittances reached US$865 billion.

Looking ahead, the World Bank projects:

• 2024: Remittances to LMICs will reach US$685 billion (+2.3%)
• 2025: Growth will continue, with global flows exceeding US$905 billion

These figures reflect the resilience of cross-border family support, even amid global economic uncertainties.

Regional Breakdown of Remittance Flows

Sub-Saharan Africa

In 2023, Sub-Saharan Africa received US$54 billion, a slight 0.3% decline from 2022, yet still a critical lifeline. Nigeria accounted for 35% of the total (~US$19.5 billion), while Ghana, Kenya, and Senegal received between US$2.9–4.6 billion.

South Asia

South Asia remains the largest recipient, with remittances rising 5.2% to US$186 billion in 2023. India leads at US$125 billion, followed by Pakistan, Bangladesh, and Sri Lanka. These inflows represent a major portion of household incomes in the region.

Latin America & Caribbean

Remittances grew 8% to US$156 billion, driven by strong wages in the US. Mexico received US$63.3 billion, surpassing oil and tourism revenue. Guatemala and Honduras followed with US$19.8 billion and US$9.2 billion respectively.

Middle East & North Africa

Remittances fell 15% to US$55 billion, largely due to currency volatility in Egypt, which diverted funds to informal channels. Recovery is expected in 2024 following exchange-rate stabilization.

Migrant Remittance Behavior

• Typical transfers: US$200–300 every 1–2 months (~15% of earnings)
• Large transfers: Over US$1,000, often for education or investment
• Most transactions: Under US$200, meaning higher fee percentages for smaller transfers

Migrant remittances frequently constitute up to 60% of a recipient household’s income, demonstrating their vital economic role.

Channels for Sending Money Home

Migrants rely on formal and informal channels:

• Banks: Most expensive (~12% fees per transfer)
• Money Transfer Operators (MTOs): Average 5.5% fees
• Mobile-money services: Average 4.4% fees, though still under 1% of total volume

In the UK, sending £120 averaged 6% in fees in early 2024, with corridors to Pakistan among the cheapest (<1% via bank transfer).

Cost of International Money Transfers

High fees reduce the value of remittances. Global averages for sending US$200:

• Late 2023: 6.7%
• Sub-Saharan Africa: 7.9%
• Latin America: 6.1%
• South Asia: 4.3%

The UN SDG target aims for 3% by 2030, but most corridors remain above this goal. Using digital platforms like Famremit can help reduce fees and maximize impact.

Impact on Recipient Economies

• Household consumption
• Education and healthcare
• Small businesses

In over 60 countries, remittances account for more than 3% of GDP; in Tonga, they reach 41%. In Sub-Saharan Africa, they stabilize current accounts amid climate and debt challenges. In Mexico, remittances surpass foreign exchange from oil and tourism.

Fintech’s Rising Role in Money Transfer

Digital platforms are reshaping remittance corridors. Global fintechs like Wise, Revolut, and NALA offer mid-market rates, low fees, and real-time tracking. African mobile-money networks such as M-Pesa and Moniepoint leverage smartphone penetration to lower costs and speed up transfers. Platforms like Famremit combine speed, security, and affordability, making them ideal for migrants and SMEs alike.

Challenges and Risks

• Informal channels persist due to regulatory barriers and distrust
• Exchange-rate volatility complicates planning
• Limited access to digital ID and banking pushes users to cash-based methods, increasing fraud risks

Outlook and Policy Implications

Remittance growth is projected to strengthen in 2024–25:

• Global: US$905 billion
• LMICs: US$685 billion

Policymakers should focus on lowering transfer costs, expanding digital infrastructure, and harmonizing regulations to channel funds through safe, transparent systems. International cooperation—especially among Commonwealth and African Union countries—can foster interoperable payment rails and reduce cash dependency.

Conclusion

The money migrants send home is more than statistics—it’s a critical economic and social lifeline. As global remittances approach US$900 billion, reducing fees, expanding digital solutions, and protecting transfers through regulated platforms like Famremit is essential for families and economies worldwide.

By leveraging fintech innovations, migrants can ensure faster, safer, and more affordable transfers while strengthening financial inclusion across Africa and beyond.

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