Remittance fintechs are disrupting the world of global payments by reducing the cost of cross-border money transfers. This Financial Times article highlights how digital transfer services are challenging the high costs of remittances and the impact that could have on global banking. CFI’s managing director, Mayada El-Zoghbi, offers her insights on falling remittance prices, the impact of the pandemic on transferring money, and potential risks down the line.
El-Zoghbi believes that a target for the global average remittance charge of three percent or below by 2030 is “within reach.” She also points out structural factors that have caused digital transfer payments to rise, including travelers being unable to transfer cash themselves during the lockdown. Finally, El-Zoghbi mentions the potential risks of monopolistic behavior from big payment businesses down the line.
Read the full article here.