A remittance is the transfer of money by a foreign worker back to their family or individuals of their own home country. Sending money back home can cause many headaches and there are usually very high fees to be paid if you want it to get there safely. A common problem with sending cash in the mail to a foreign country is that the mail will simply disappear in the process by foreign postal workers. They will sometimes simply steal the money right out of the envelopes.
A second and more common problem with sending remittances back home is the extremely high fees that are charged by money transmitters such as MoneyGram or Western Union. For example, sending money from the USA to Mexico encounters a 5-8% sending fee, plus a hidden 1.5% fee in the conversion from USD to the Mexican Peso. Another example is that when sending money from the USA to Uganda there is a 5-8% sending fee, plus a hidden 3.5% fee on the conversion rate from USD to Uganda Shillings.
This is one area where Bitcoin stands out. Bitcoin transfers have a flat fee of about 0.0001 Bitcoins, or about 4 cents per transaction. A person could send a billion dollars from the United States to Uganda and the total amount of fees would be only 4 cents. If you tried to send a billion dollars from the USA through Western Union to Uganda, the fees would total 115 million dollars! Now we all know that no single individual is going to send that much money from the USA back to their family (who has that kind of money?), however if you consider all the people in the USA that send to their families back home every month, you can see how much money these money transmitter companies make and they are taking it from the lower class in sometimes third world countries
Here is a real-life story below of a family that decided to send money to their family in Uganda using Bitcoins. The family sent $30 USD to Uganda using Bitcoins. The family member, who is currently attending college, used his laptop to receive the Bitcoins and then went into the city to find another person in Uganda that accepted Bitcoins. The family member then exchanged the Bitcoins for the Uganda Shilling all while saving money from the extremely low transfer fees. Have a look at the video below.
Bitcoin Remittance Companies
Abra – Worldwide
Bitpesa – Bitcoin to Africa
Coins.ph – Bitcoin to the Philippines
Satoshi Tango – Bitcoin to Argentina
Rebittance – Bitcoin to Australia, Canada, China, Hong Kong, India, Indonesia, Netherlands, Philippines, Spain, United Kingdom, Vietnam
If you know of any other Bitcoin Remittance companies please let us know below.