WorldRemit insights: How COVID-19 is impacting international payments

Denver, April 27th, 2020: Country lockdowns are significantly impacting the flow of international payments. As governments across the globe impose movement restrictions to prevent the spread of COVID-19, data from international money transfer service WorldRemit shows this is changing the way people send and receive money abroad.

WorldRemit enables international payments to be sent from 50 countries via its 100% digital platform. In recent weeks, customer acquisition was up compared to the same period last year. In countries like the US, Canada, Spain, Italy, and the UK where strict lockdowns have been put in place, people who still need to send money abroad but don’t want to put themselves at risk by leaving their homes are beginning to move to digital methods.

On the receive side, the company is observing a marked increase in money flows into digital channels like bank accounts and mobile wallets.  Data collected by WorldRemit from the last few weeks shows that where cash pick up is impacted due to lockdown, there has been a shift to digital. In countries including Thailand and Fiji, the shift to mobile money, airtime top-up or bank transfers has been 100% since the first half of March.  

Although some customers may eventually return to cash as their preferred money transfer method after the COVID-19 pandemic passes, it is highly likely that we will see an accelerated migration from cash and retail money transfer towards mobile money and other forms of digital payment. 

According to data from the World Bank in Q4 2019, WorldRemit digital money transfers save customers an average of 25% when sending USD200, compared to other global money transfer providers*. In the global economic downturn that we are beginning to experience, offering great value and competitive pricing to consumers is critical for money transfer companies like WorldRemit. 

“In the midst of the very challenging environment that our customers are facing around the world, we are committed to continuing to provide a secure, convenient, and affordable money transfer service through digital channels. Hard-working immigrants around the world more than ever need these safer digital options to continue to support their families in these difficult times,” says Daniel Canning, Managing Director for WorldRemit Americas.

Notes to Editors:

*WR is, on average, 25% cheaper against Ria, Western Union, and MoneyGram (when sending USD200). Comparison based on the average global aggregate cost to send using data sourced from the World Bank for Q4 2019.  For more details visit worldremit.com/save WorldRemit Corp, 2093 Philadelphia Pike #1016, Claymont, DE 19703.

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About WorldRemit

We are a leading global payments company and, along with Sendwave, part of Zepz, a group powering two global remittance brands. 

We disrupted an industry previously dominated by offline legacy players by taking international money transfers online – making them safer, faster and lower cost. We currently operate in more than 5,000 money transfer corridors worldwide and as part of Zepz, are part of a 1,400 person global workforce.

Sending money with WorldRemit is 100% digital (cashless), increasing convenience and enhancing security. For those receiving money, we offer a wide range of options, including bank transfer, cash pickup, airtime top up and mobile money. 

Backed by Accel, TCV and Leapfrog – WorldRemit’s headquarters are in London, United Kingdom, with regional offices in the United States, Poland, Canada, Australia, Hong Kong, Singapore, Malaysia, the Philippines, South Africa, Somaliland, Uganda, Kenya, Rwanda, Tanzania, Zimbabwe and Belgium.

About Zepz

Zepz Group is the group powering leading global remittance brands: WorldRemit and Sendwave. Since 2021, Zepz Group has been disrupting an industry previously dominated by offline legacy players by reducing the barriers to finance and increasing safety and convenience for users. Every day, Zepz Group and its brands work towards unlocking the prosperity of cross-border communities through finance and technology - driven by the vision of a world that celebrates migrants’ impact on prosperity, at home and abroad.

Zepz Group brands have helped cross-border communities send over $15bn from 50 countries, to recipients in 130 countries in 2022, and operate over 5,000 money transfer corridors worldwide. Zepz Group employs over 1,400 people globally as a remote-first employer, with team members located across six continents.