Since the turn of the decade, the landscape for international money transfers has been undergoing a significant transformation, with crypto having reared its head as a powerful force for financial inclusion.

To put things into perspective, during 2023, global remittance flows (across the fiat and crypto realms) reached a staggering $857 billion, marking a 1.6% increase from the previous year, with low and middle income countries receiving $656 billion of these funds. 

However, underneath these mammoth figures lays a deeply human story, one showcasing the determination of millions of migrant workers to support their families. For many of these individuals, traditional remittance systems represent a major burden, with high fees often consuming a significant portion of their hard-earned money. 

For instance, the average cost of sending $200 globally — via popular channels like SWIFT and Paypal — currently stands at 6.4%, a rate that disproportionately affects those who can least afford it. 

This is where cryptocurrency has begun to make a meaningful difference. With transaction fees as low as a few cents or dollars (across popular networks like Bitcoin, Ethereum, Solana, and Tron), crypto-based remittances are offering a more economical alternative.

The impact of this technological shift is particularly evident in the Latin American corridor, where platforms like Bitso processed approximately $8 billion in remittance payments last year (with more than half of these funds flowing between the United States and Mexico). 

Lastly, with an estimated 2.4 million potential Latino migrant cryptocurrency users in the US alone — representing a potential transfer volume of $740 million annually — the opportunity for positive social impact is immense.

The rise of the unbanked 

Over the last few years, the advent of offerings like digital wallets has become a crucial tool for bridging many of today’s economic divides, particularly those preventing the unbanked population — who have historically been excluded from traditional banking systems—  from accessing essential financial services. 

Within this landscape, the Ramp Network has emerged as a pivotal player, offering an innovative approach to facilitating crypto transactions. By aggregating various sources of liquidity and payment methods, Ramp has created a more accessible and user-friendly experience for both newcomers and experienced users.

Moreover, their integration of open banking rails represents a significant advancement, allowing users to connect directly with their bank APIs for faster, more affordable transactions with higher limits.

The platform’s comprehensive suite of payment options, including cards, Apple Pay, Google Pay, and SEPA transfers, offers a degree of flexibility that is particularly important in today’s remittance market. 

Whether through overlay, hosted, or embedded implementations, Ramp ensures that partner applications can provide their users with a natural and intuitive way to interact with cryptocurrency services. 

The impact of this approach is evident in the success stories of implementations like Coco Wallet, where the integration of Ramp Network has led to remarkable results. With over 800 monthly active users and an average transaction size exceeding $100, the platform has demonstrated the viability of cryptocurrency as a remittance solution. 

Furthermore, the 75% increase in transaction volume alongside an impressive 62% retention rate has underscored the effectiveness of this approach in meeting real user needs even more.

Exploring an increasingly digital horizon

Looking at the future, the trajectory of crypto remittances appears quite promising. The significant cost differential between traditional and cryptocurrency-based transfers combined with increasing technological literacy and growing trust in digital financial solutions, suggests that crypto remittances will likely play a significant role in global money transfers.

Not only that, with global cryptocurrency ownership rates reaching 6.8% and encompassing over 560 million users worldwide, the foundation for widespread adoption of this novel remittance avenue seems to already be in place.

Therefore, as digital asset service providers like Ramp Network continue to set the bar higher, existing barriers to entry will likely continue to fall, making crypto remittances an increasingly attractive option for millions of people seeking efficient, affordable ways to support their loved ones across the world.