In one of the interesting trends revealed by the Clovr, a research company focused on cryptocurrency, shows that there is an increase in the share of cryptocurrencies in the overall global remittances. The development has come as good news for the Crypto market and the blockchain technology and more importantly, signals the changing trend of enhanced use of digital currencies for a variety of purposes, in this case, money transfers.
Survey on Remittances
Clovr conducted a survey and collected response from 707 respondents on their money transfer habits, transfer destinations, the aim of the transfers, and medium used for the transfer of money. The survey analyzed the data and revealed top 20 countries are getting the most remittances from the US in the year 2017. Mexico tops the list followed by China, India, Philippines, and Vietnam while the Pakistan and Italy stacked at the bottom of the list at 19th and 20th place respectively. Not surprisingly, in terms of the breakdown of remittances, family comes out on top with 76.8% of share.
Interestingly, the data on a medium of money transfer revealed that 50% of the respondents use PayPal and Western Union money transfer services while 25.7% rely on traditional bank services for transfers. A considerable 15.8% use cryptocurrency for the remittance followed by 12.2% using prepaid cards, 11.8% using an online money order, 8.9% using cash via mail, 6.1% relying on post office wire transfer, and 1.9% using other methods.
To drive home the point that cryptocurrency transaction is far cheaper and faster, the study analyzed the cost structure of the mediums used for money transfers. A bank will charge $52.05 to transfer payment of $500 while the fee is $30.75 in case of money transfer service providers. A post office will charge $34.05 while the mobile operators demand $16 for the same $500 transaction. Survey also revealed that customers are 93.3% satisfied in case of online services, 84.1% with money transfer services, and 73.3% with traditional Bank wire transfers.
The study found a considerable gender gap on the subject of cryptocurrency as men continue to dominate the adoption of digital currency, the result which is in-line with the past research studies. The report highlights the huge potential for the Cryptocurrencies to gain a strong foothold in the money transfer or remittance industry owing to their fast, reliable, extremely safe, and cost-effective nature. The study noted that the practice of remittance is going to stay for a long period in the future and cryptocurrencies can play an effective role in the money transfer industry. It predicted that in the times to come cryptocurrencies would definitely catch the attention of the customer once they become aware of the merits of using digital coins for the money transfer.