 First, the cost of remittances remains very high, at an estimated 7.32 percent globally and 9.42 percent for SSA, and needs to be lowered quickly.2 These costs are charged largely by the originating institutions in countries where the traditional structures and institutions such as banks remain dominant.
However, the ease and cost of remittance transfers also has a significant impact on the welfare of the many households that rely on these flows. The regionalization of money remittance services and modernization of cross border payment platforms would certainly facilitate a lowering of the cost of remittances.