Remittance Prices Worldwide - Issue 38, June 2021

03

Remittance Prices Worldwide - Issue 45, March 2023

This Report reflects the latest trends observedin the data published in March 2023.
Remittance Prices Worldwide is available at
http://remittanceprices.worldbank.org© The World Bank Group, 2023

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Remittance Prices Worldwide - Issue 45, March 2023

Overview
Remittance Prices Worldwide (RPW) monitors remittance prices across all geographic regions of theworld. Launched in September 2008, RPW monitors the cost incurred by remitters when sending money
along major remittance corridors. RPW is used as a reference for measuring progress towards global
cost reduction objectives, including the G20 commitment to reduce the global average to 3 percent,which is being pursued in partnership with governments, service providers, and other stakeholders.
Since Q2 2016, RPW covers 48 remittance sending countries and 105 receiving countries, for a total of367 country corridors worldwide. RPW tracks the cost of sending remittances for four main RSP types:
Banks, MTOs, Mobile Operators, and Post Offices. MTOs include both traditional providers andinnovative/fintech players. On average, 21.6 services per corridor are tracked.
This Report uses data from RPW’s most recent release to analyze the global, regional, and country
specific trends in the average cost of migrant remittances.
FXC Intelligence provides the underlying data used in the RPW.

Overview
Key findings
Remittance Prices Worldwide (RPW) monitors remittance prices across all geographic regions of the• world.
The Launched
Global Averageremainedalmostsame:the6.24
percent
in Q42022 vs.when
6.25 sending
percent in
Q1
in September
2008,
RPWthemonitors
cost
incurred
by remitters
money

2023.
along
major remittance corridors. RPW is used as a reference for measuring progress towards global
cost
reduction
objectives, including the G20 commitment to reduce the global average to 5 percent,• The International MTO Index experienced a slight increase over the quarter to 6.37 percent in Q1
which
is
being
pursuedin partnership
2023, from 6.34 percent
in Q4 2022.with governments, service providers, and other stakeholders.
• Since
The Q2GlobalWeighted
Averagedecreasedslightlycountries
to 4.79 percent
Q1 2023countries,
from 4.81forpercent
2016,
RPW covers
48 remittancesendingand 105inreceivinga totalinof

Q4country
2022. corridors worldwide. RPW tracks the cost of sending remittances for four main RSP types:
367
MTOs,SmaRT
MobileAverage
Operators,
and2023
Post
Offices.
MTOs
includeboth
providersand• Banks,
The Global
for Q1wasrecorded
at 3.47
percent(uptraditionalfrom 3.31 percent
in Q4
innovative/fintech
On average,
21.7
services
per corridor
aretracked.
2022). Out of theplayers.
354 corridors
for whichdatawere collected
in Q1
2023,
27 did not have any SmaRT
qualifying services.
This Report uses data from RPW’s most recent release to analyze the global, regional, and country• specific
The Digitalindex
the same: 4.71 in Q4 2022 vs. 4.72 percent in Q1
trendsremittancesin the average
costremainedof migrantalmost
remittances.
2023.
FXC Intelligence provides the underlying data used in the RPW.
• The Digital-only MTO index experienced a decrease to 3.90 percent in Q1 2023 from 4.06 in Q2
2022.
•

Overview
South Asia remains the lowest cost receiving region, with an average cost of 4.58 percent. Sub-

Saharan Africa remains the most expensive region to send money to, recorded at 8.35 percent total
RemittancePricesWorldwide(RPW) monitors remittance prices across all geographic regions of theaverage cost
in Q1
2023.
world. Launched in September 2008, RPW monitors the cost incurred by remitters when sending money• alongBanksremainthe most
expensive
typeisofusedservicewithaverage costof 12.10
percent.
major
remittancecorridors.
RPW
as aprovider,reference
foran
measuring
progresstowards
globalcost
reduction
objectives,
includingtheG20commitment
toreducetheglobalaverageto5
percent,• The proportion of corridors with average costs of less than 5 percent has increased considerably
which
being
pursuedin partnershipwithgovernments,
service providers, and other stakeholders.
sinceisQ1
2009(from 17percent to 39
percent
in Q1 2023).
Since Q2 2016, RPW covers 48 remittance sending countries and 105 receiving countries, for a total of367 country corridors worldwide. RPW tracks the cost of sending remittances for four main RSP types:
Banks, MTOs, Mobile Operators, and Post Offices. MTOs include both traditional providers andinnovative/fintech players. On average, 21.7 services per corridor are tracked.

3Remittance Prices Worldwide - Issue 45, March 2023•

In Q1 2023, mobile money remains the lowest cost instrument to originate remittances and was also
the lowest cost instrument to receive remittances.

•

Due to the ongoing Russia-Ukraine war, RPW did not include any data on corridors originating in the
Russian Federation in Q1 and Q2 2022. In Q3-Q4 2022 and Q1 2023, only publicly available online
data on corridors originating in Russia were collected, i.e., mystery shopping or data collection via
APIs were not employed. Due to this deviation in data collection methodology, these services were
not included in the main analysis in Q1 2023 (as well as in Q3 and Q4 2022); instead, the data arepresented in Annex V.

•

In Q1 2023, fifty-one services were moved from the prospects index to the main analysis, after
demonstrating consistency, materiality and diversity. In the same quarter, fifty-five new services wereadded to the prospects index. Majority of these newly added services are offered by banks incollaboration with international MTOs, such as MoneyGram, Western Union and Wise. It is important
to note that banks’ MTO-linked transfers consistently offer lower fees than their non-MTO-linked
counterparts. RPW will continue to monitor and include new services when and where relevant using
the prospects index.

4Remittance Prices Worldwide - Issue 45, March 2023

Table of Contents
Overview........................................................................................................................... 3
Key findings ...................................................................................................................... 3
Progress tracker ............................................................................................................... 6
Number of corridors in the Q1 2023 dataset ..................................................................... 6
Prospects index ................................................................................................................ 6
Global trends .................................................................................................................... 7
Global average remains flat................................................................................................................................. 7
International MTO Index .................................................................................................................................... 8
Global weighted average ..................................................................................................................................... 8
Smart Remitter Target (SmaRT) ......................................................................................................................... 9
Trends in corridor average total costs ............................................................................................................... 10G8 and G20 countries ..................................................................................................... 11
Cost of sending remittances from G8 countries ................................................................................................ 11
Cost of sending remittances from and to G20 countries ................................................................................... 12

Regional trends .............................................................................................................. 14
Cost structure ................................................................................................................. 15
Cash vs. Digital Services ................................................................................................................................... 15
Costs by RSP Type ............................................................................................................................................ 16
Costs by Sending and Receiving Method ......................................................................................................... 18

Annex I – Tables ($200) ................................................................................................. 20
Annex II - Cost Trends for Sending $500 ........................................................................ 21
Global trends for sending $500 ......................................................................................................................... 21
Global average total cost ....................................................................................................................................................21
International MTO Index ....................................................................................................................................................22

G20 Countries ................................................................................................................................................... 22
Cost of sending remittances from and to G20 countries ...................................................................................................22

Annex III – Tables ($500)................................................................................................ 25
Annex IV – Prospects Index............................................................................................ 26
Annex V – Corridors from Russia.................................................................................... 29

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Remittance Prices Worldwide - Issue 45, March 2023

Progress tracker
RPW indicators are used to measure the progress towards targets of global efforts for the reduction ofremittance costs. The UN SDGs and the G20 have indicated a target of 3 percent for the Global Average
to be reached by 2030.1 At the same time, the UN SDGs and the G20 have also committed to ensuringthat in all corridors, remittances can be transferred for 5 percent or less.
The figure below summarizes the progress towards these three targets.

Number of corridors in the Q1 2023 dataset
The Q1 2023 dataset includes data from 351 corridors (excluding 13 originating in Russia, and 3
originating in Nigeria). Due to the ongoing Russia-Ukraine war, RPW did not include any data on corridors
originating in the Russian Federation. In addition, remittance service providers (RSPs) have still notresumed outgoing remittance operations in Nigeria due to the Central Bank of Nigeria banning alloutbound transfers from the country.

Prospects index
Since Q1 2022, RPW data collection would be used to also monitor new services via a prospects
index. These new services could be candidates for inclusion in the main index in the future subject tothem meeting certain requirements. Please see Annex IV for details.
The G8 (L’Aquila, 2010) and the G20 (Cannes, 2011 and Brisbane, 2014) committed to reduce the Global Average Total
Cost to 5 percent. The G20 aligned with the UN’s 2030 Agenda to include cost reduction targets set under SDG 10.c. In
addition, through the G20 Roadmap for Enhancing Cross-Border Payments, the G20 reaffirmed SDG 10.c for remittancecosts. World Bank’s Remittance Prices Worldwide database will be used to monitor several targets on remittances in the
Roadmap, including those on cost, speed and transparency. See FSB (2021), Targets for addressing the four challenges ofcross-border payments (https://www.fsb.org/wp-content/uploads/P131021-2.pdf) and FSB (2022), Developing the
Implementation Approach for the Cross-Border Payments Targets (https://www.fsb.org/wp-content/uploads/P171122.pdf).
Until now, RPW has been reporting on the G8/G20 remittance target of 5%. In line with the G20 affirmation of the SDG 10.cremittance price targets, with this Q1 2023 edition of the RPW Quarterly Reports, the reporting is being adjusted to keep only
SDG 10.c. There has been no change in methodology.
16Remittance Prices Worldwide - Issue 45, March 2023

Global trends
Global average remains flat
In Q1 2023, the Global Average cost for sending remittances was 6.25 percent, a minute increase from
6.24 in Q4 2022. The Global Average has remained below 7.00 percent since Q1 2019 (see Figure 1
below and Table 1 in the Annex). Overall, this represents a decline of 3.42 percentage points since Q1
2009, when the figure was recorded at 9.67 percent. In Q1 2023, the global average for digital remittances
was recorded at 4.72 percent, while the global average for non-digital remittances was 6.92 percent.
Digital services account for 31% of all services RPW collected in Q1 2023.2

Figure 1 Trends in the global cost of sending $200 in remittances3

2

A digital remittance must be sent via a payment instrument in an online or self-assisted manner, and received into a transaction account,i.e., bank account, transaction account maintained at a non-bank deposit taking institution (say a post office), mobile money or e-money
account.
3 Figures for the global average were adjusted in Q1 2014 following a clean-up of the entire database. Some values slightly vary from figures
published prior to Q1 2014.

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Remittance Prices Worldwide - Issue 45, March 2023

International MTO index
The International MTO Index tracks the prices of MTOs that are present in at least 85 percent of corridors
covered in the RPW database.4 In Q1 2023, the International MTO Index recorded an increase to 6.37
percent from the previous value of 6.34 percent in Q4 2022. Over the year, this figure was down by 0.06
of a percentage point, recorded at 6.44 percent in Q1 2022. This figure has come down by 3.99 percentage
points from its first recorded value of 10.36 percent in Q1 2009. In Q1 2023, the digital-only MTO Index
recorded at 3.90 percent, a decrease from 4.06 percent in Q4 2022.5 The digital-only MTO Index has
consistently remained below both the International MTO Index and the global average.
Figure 2 Trends in International MTO Index & Digital-only MTO Index

Global weighted average
The global weighted average total cost accounts for the relative size of the flows in each remittancecorridor.6 This, as illustrated in Figure 3 (see also Table 1 in the Annex), has at times shown a different
4 The International MTOs Index includes all MTOs that are present in over 85 percent of RPW corridors. Thus far, it has included Western

Union and MoneyGram, which operate in 95 percent and 90 percent of the country corridors covered in the database, respectively.
5
A digital-only MTO refers to money transfer operators that send remittances predominantly through digital channels. The digital-only MTO
index includes five digital-only MTOs, Wise, Remitly, WorldRemit, InstaReM and Xoom. Some of these providers also have physical channels.
6 It is important to note that, while official data on remittance flows by bilateral corridors are currently not available, estimates (Ratha andShaw 2007, the 2018 version, available at8

Remittance Prices Worldwide - Issue 45, March 2023

pattern from the simple average. In Q1 2023, the Global Weighted Average was recorded at 4.79 percent.
This figure has been recorded below 5.00 percent since Q4 2020. Over the last five years, this figure has
decreased by approximately 0.43 percentage points – recorded at 5.23 percent in Q1 2018.
Figure 3 Trends in Global weighted average & SmaRT average

Smart Remitter Target (SmaRT)
To complement the Global Average and Global Weighted Averages described above, the World Bank
introduced the SmaRT indicator in Q2 2016, which aims to reflect the cost that a savvy consumer withaccess to sufficiently complete information could pay to transfer remittances in each corridor. SmaRT is
calculated as the simple average of the three cheapest qualifying services for sending the equivalent of$200 in each corridor and is expressed as a percentage of the total amount sent. In addition totransparency, services must meet additional criteria to qualify for being included in the SmaRT calculation,
including transaction speed (five days or less), and accessibility, determined by geographic proximity of
branches for services that require physical presence, or access to any technology or device necessary to

http://www.worldbank.org/en/topic/migrationremittancesdiasporaissues/brief/migration-remittances-data) have been used in this calculation.
These estimates are based on the Balance of Payments (BOP) and factor in migrant stocks, destination country incomes, and source country
incomes. The methodology for these estimates has been questioned, as well as the accuracy of official data on remittance flows and migrant
stocks. However, this still represents the only available comprehensive dataset on bilateral remittance flows. It also seems likely that overall,
the dataset is sufficiently accurate to reflect at least the proportion between the different corridors, hence offering a good approximation toweight the relevance of each corridor in terms of flow size.

9Remittance Prices Worldwide - Issue 45, March 2023

use the service, such as a bank account, mobile phone, or the Internet. 7 In Q1 2023, the Global SmaRT
Average was recorded at 3.47 percent.
The potential of SmaRT can be appreciated even more at the corridor level, where the indicators caninform policy actions by identifying limitations at a more granular level. In Q1 2023, 27 of the 3548 corridors
did not have any SmaRT qualifying services, indicating that in these corridors there is an issue with either
access or reach of services, or a lower level of competition. Of these 27 corridors, sixteen are destinedfor Sub-Saharan Africa, six for the Middle East and North Africa, four for South Asia, and one for Latin
America and the Caribbean. An overwhelming majority of these corridors have low Internet penetration
and/or have low transaction account penetration, which indicate that access to the Internet and accounts
should be proactively targeted in these regions as a means of encouraging more diverse payment andremittance services offering. Majority of the receiving countries in this group have a “Green Light” SmaRT
rating for accessibility to Cash, and majority (20 out of 27 – see Box 1) have a “Green Light” rating for
Mobile services (measured by availability of cash services and number of cellular subscriptions per 100
persons).
Box 1 - Corridors without SmaRT qualifying services with “Green Light” rating for mobile
services
Angola to Namibia
Qatar to Sudan
Saudi Arabia to Sudan
Italy to Egypt, Arab Rep.
Nigeria to Benin
Saudi Arabia to Syrian Arab Rep.
Ghana to Nigeria
Nigeria to Mali
Jordan to Syrian Arab Rep.
India to Bangladesh
Nigeria to Togo
United Arab Emirates to Yemen, Rep.
India to Pakistan
Netherlands to Suriname
United Arab Emirates to Sudan
India to Sri Lanka
South Africa to Lesotho
United States to Yemen, Rep.
Qatar to Egypt, Arab Rep.
South Africa to Swaziland
Note: In Q1 2023, RPW continues to experience difficulties in collecting data on all outbound services from Nigeria. In
addition, data on services originating in the Russian Federation (13 corridors) were not included. Therefore, for Q1 2023,
RPW reports no qualifying services in these 16 corridors, three of which are listed in this Box in italics.

The UN SDGs committed to ensure that, by 2030, it should be possible to send remittances for 5 percent
or less in every corridor. The SmaRT averages are used as a reference for this indicator, reflecting thefact that in any given corridor there are services available to customers that meet the requirements
described above, while also on average offering a cost that is in line with the UN SDG. As of Q1 2023, 73
percent of all corridors covered in the RPW database had SmaRT corridor averages below 5 percent.9

Trends in corridor average total costs
Figure 4 shows that compared to Q1 2009, the proportion of corridors with average costs of less than 10

7

For additional information on the methodology used to calculate SmaRT see
https://remittanceprices.worldbank.org/sites/default/files/smart_methodology.pdf
8 The number of corridors excludes the 13 corridors originating in Russia.
9 Please note that this figure excludes the 13 corridors which originate in Russia.

10Remittance Prices Worldwide - Issue 45, March 2023

percent has increased considerably, showing an overall increase of share by 31 percentage points (53percent of corridors in Q1 2009, compared to 83 percent of corridors in Q1 2023). This shift is naturallyaccompanied by a decrease of share of corridors exhibiting total costs over 15 percent (18 percent ofcorridors compared to 4 percent of corridors). In the 10-15 percent total cost category there are 9 percentof corridors in Q1 2023, compared to 29 percent of corridors in Q1 2009. Year over year since Q1 2019,
this gradual shift is visible. Of the 8 corridors with costs above 20 percent in Q1 2023, six originate in SubSaharan Africa and are destinated for Sub-Saharan Africa. In addition, corridor average total costs for alloutbound services from Nigeria remain unavailable. Corridor average total costs for services originatingfrom Russia are also not included. These 16 corridors are shown as “NA” in Figure 4.

Figure 4 Distribution of Average Total Costs

G8 and G20 countries
Cost of sending remittances from G8 countries
The G8 countries include several of the major remittance sending countries in the world.10 The average
cost for sending remittances from the G8 countries increased from 5.88 percent in Q4 2022 to 5.97 percent
in Q1 2023. Over the year, this figure increased by 0.17 of a percentage point (from 5.80 percent in Q12022). The largest increase in total average cost to send remittances is seen in France (5.75 percent to6.29 percent), Canada (6.29 percent to 6.51 percent), Germany (5.98 percent to 6.13 percent), the UnitedStates (5.58 percent to 5.69 percent), and Italy (4.97 percent to 5.01 percent). The largest decrease isseen in Japan (7.22 percent to 6.96 percent), followed by the United Kingdom (6.34 percent to 6.25
percent).

10 As the dataset did not include data on corridors originating from Russia collected in the same way as from other sending countries, theG8 and G20 figures reported do not include data on these corridors from Russia.

11Remittance Prices Worldwide - Issue 45, March 2023

Figure 5 Total average over time in G8 countries

Cost of sending remittances from and to G20 countries
The cost of remitting from G20 countries experienced a small increase to 6.47 percent in Q1 2023, asshown in Figure 6 (also see Table 3 in the Annex).
Figure 6 Average cost of sending $200 from G8 and G20 countries

South Africa remains the costliest G20 country to send remittances from (see Figure 7). This is despite
an overall decrease from its peak in Q1 2013, when the cost of sending from South Africa was more than
20 percent. In Q1 2023, remitting from South Africa incurred an average cost of 13.40 percent, an increase
from its recorded value of 13.19 percent in Q4 2022. The cost of sending from the second most expensive
G20 sending country – Brazil – was recorded at 8.10 percent in Q1 2023. The Republic of Korea is the12Remittance Prices Worldwide - Issue 45, March 2023

least expensive G20 sending country, recorded at 3.30 percent, followed by Saudi Arabia (4.54 percent),
Italy (5.01 percent), the United States (5.69 percent), Australia (5.77 percent), and Germany (6.13
percent).
Figure 7 Average cost of remitting from G20 countries

Figure 8 Average cost of sending $200 to G20 countries

Figures 8 and 9 display the total average cost of sending $200 to G20 countries over time and in Q1 2023,
respectively (see also Table 4 in the Annex). The average cost of sending money to the G20 countries
that are included in RPW as receiving markets was recorded at 5.48 percent in Q1 2023.

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Remittance Prices Worldwide - Issue 45, March 2023

Apart from a few quarters, the average cost of sending money to the G20 countries has followed thepattern of the Global Average. Since Q2 2017, the cost of remitting to G20 countries is recorded below
the Global Average. In Q1 2023, South Africa (6.64 percent) is the most expensive country in this groupto remit to, followed by China (6.30 percent), and Türkiye (6.28 percent). Costs for sending remittances to
Brazil, Indonesia, India, and Mexico were recorded below 6 percent. Mexico remained the cheapest
receiving market in the G20 group, recorded at 4.65 percent.
Figure 9 Average cost of remitting to G20 countries, by Country

Regional trends
Figure 10 Average costs over time by region of the world

The cost for remittance services varies significantly depending on the region where the money is being
sent to (see Figures 10 & 11 below and Table 5 in the Annex). Sub-Saharan Africa (SSA) experienced
the largest increase from 8.01 percent to 8.35 percent, followed by Europe & Central Asia (ECA) and Latin
America and the Caribbean (LAC). South Asia (SA) experienced the largest decrease from 4.94 percent

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Remittance Prices Worldwide - Issue 45, March 2023

to 4.58 percent, followed by Middle East and North Africa (MNA). East Asia and Pacific (EAP) remained
the same at 5.70 percent.
Figure 11 Average costs by region of the world

Cost structure
Cash vs. digital services
Figure 12 Average costs by region: cash vs digital services

Figure 12 further compares the costs for remittance services among different regions, by breaking down
the cost into two components: fee and foreign exchange (FX) margin. Within each region, Figure 12

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Remittance Prices Worldwide - Issue 45, March 2023

differentiates between digital and non-digital remittances. It shows fees account for a large portion of thecosts for remittance services. Moreover, costs for non-digital services are consistently higher than thosefor digital services regardless of the region where the money is being sent to.

Costs by RSP type
RPW tracks the cost of sending remittances for four main RSP types: banks, MTOs, mobile operators,
and post offices. Figure 13 provides a time series visual of all the RSP types included in the RPW dataset.
Over time, banks, mobile operators, and MTOs have seen a general decline of total average costs, while
post office services, due to the small number of services, have led a volatile trend and overall recorded
periodic increases since the historic low recorded in Q3 2013. Banks have been firmly above the Global
Average, whereas MTOs and mobile operators have remained below.
Figure 14 provides an overview for each RSP type in Q1 2022 and Q1 2023. Banks continue to be thecostliest RSP type, with an average cost of 12.10 percent in Q1 2023. Post offices’ costs are recorded at
7.25 percent in Q1 2023.11 MTOs’ costs are recorded at 5.35 percent, while mobile operators are thecheapest RSP type with costs recorded at 4.18 percent. However, mobile operators only account for avery small share (less than 1%) of the sample size. Box 2 provides additional details on the average costof sending $200 via mobile operators.
Figure 13 Total averages over time by RSP type

11 Several services originating in France via “La Poste” are provided by “La Banque Postale” which is a subsidiary of La Poste and islicensed as a bank. This recategorization seems to have impacted the average cost of sending via post offices in Q1 2022.

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Remittance Prices Worldwide - Issue 45, March 2023

Figure 14 Total average by RSP type17

Remittance Prices Worldwide - Issue 45, March 2023

Box 2 - Average cost of sending $200 via mobile operators
Average cost of sending $200 via mobile operators has been fluctuating around 3 percent over time,
until recently. At the same time, transfer fees charged by mobile operators have been around 1.5 – 2.0
percent on average (Figure B2.1 – the blue shaded portion in the chart shows share of fees in the
average cost).
RPW collects the total cost of services split into two components: transfer fee and foreign exchange
margin. As shown in the figure, the fluctuations in the average cost of sending via mobile operatorssince 2021 have largely been due to the fluctuations in the average foreign exchange margin.

Figure B2.1 Average cost of sending $200 via mobile operators

Cost of sending $200 (%)

5

4

3

2

1

0

Fees

Average Cost

A similar pattern is also observed for mobile money as the payment instrument.

Costs by sending and receiving method
RPW captures separately the payment instrument used to fund the transaction and the one used to
disburse the funds to the receiver. This approach is reflected in the charts below. This approach allows
for further refinement of the analysis and increases its adaptability to new products that might emerge andhas proven particularly useful in monitoring innovative products and players.
In Q1 2023, the cheapest method for funding a remittance transaction was Mobile Money at 4.36 percent(55 services recorded in RPW) (Figure 15). The average cost when using Cash (1,724 services) was 6.60
percent. Sending money using credit or debit card (3,536 services) cost 5.34 percent. Using a bank18Remittance Prices Worldwide - Issue 45, March 2023

account incurred an average cost of 7.45 percent (2,266 services).
Figure 15 Average Cost by Instrument Used to Fund the Transaction

Figure 16 Average cost by means of disbursing the funds

The cost of sending remittances to a bank account within the same bank or to a partner of the originatingbank (89 services) was recorded at 8.07 percent in Q1 2023 (Figure 16). In contrast, sending money to abank account regardless of originating bank (2,798 services), was 6.78 percent. When funds are sent toa mobile wallet (551 services) the average cost in Q1 2023 was 4.31 percent. Services where money is
disbursed in cash (4,229 services) cost on average 6.15 percent.

19Remittance Prices Worldwide - Issue 45, March 2023

Annex I – Tables ($200)
Table 1 – Global Average (%), International MTO Index

Table 2 – Total average in G8 Countries (%)

Table 3 – Total average in G20 sending countries (%)

Table 4 – Total average in G20 receiving countries (cost to send money to select countries %)Table 5 – Total average by regions of the world (%)

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Remittance Prices Worldwide - Issue 45, March 2023

Annex II - Cost Trends for Sending $500
This Annex is a continued supplement to the ongoing Global Cost Reduction monitoring efforts establishedwith the main RPW Quarterly Report. Global targets for reduction of remittances cost have focused on the$200 (or local currency equivalent) as the amount sent, which is believed to be an accurate representationof a typical remittance transaction size. However, data for $500 (or equivalent) have also been collectedalongside the data for $200 and have been analyzed since Q4 2017 to complement the $200 analysis.
The analysis in this annex shows again that, as expected, the average cost of sending $500 is lower as apercentage of amount sent compared to the average cost of sending $200. The analysis additionallyconfirms that the average cost of sending $500 has followed a similar trend to the one observed over theyears for $200.

Global trends for sending $500
Global average total cost
In Q1 2023, the Global Average cost for sending $500 was 4.33 percent. The average cost of sending$500 has remained below the 5.00 percent since Q2 2014 and has never exhibited a value above 6
percent (the costliest period was in Q3 2011, where the total average cost of sending $500 was recorded
at 5.59 percent) (Figure 17). This represents a decline of 0.98 percentage point since Q1 2011, when the
figure was first recorded at 5.32 percent. Over the preceding 5-year period (Q1 2018 – Q1 2023), the total
cost of sending $500 has decreased by 0.31 percentage point.
Figure 17 Global average total cost for sending $500

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Remittance Prices Worldwide - Issue 45, March 2023

International MTO Index
The International MTO Index tracks the prices of MTOs that are present in at least 85 percent of corridors
covered in the RPW database.12 In Q1 2023, the International MTO Index for $500 experienced a minuteincrease to 4.86 percent from 4.84 percent in Q4 2022. As seen in Figure 17, the International MTO Index
exhibits an overall downwards trend. Over the preceding 5-year period (Q1 2018 – Q1 2023), the total
cost of sending $500 has decreased by 0.92 percentage point.

G20 Countries
Cost of sending remittances from and to G20 countries
The cost of remitting $500 from G20 countries has remained below 5.00 percent since Q1 2014, when
this figure was recorded at 5.10 percent. The total cost of remitting $500 from G20 countries has closely
followed a similar trend as the Global Average of sending $500, as seen in Figure 18. The cost of remitting$500 from G20 countries in Q1 2023 remained largely the same, recorded at 4.50 percent.
Figure 18 Average cost of sending $500 from G20 countries

12

The International MTOs Index includes all MTOs that are present in over 85 percent of RPW corridors. Thus far, it has included Western
Union and MoneyGram, which operate in 95 percent and 90 percent of the country corridors covered in the database, respectively.

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Remittance Prices Worldwide - Issue 45, March 2023

In Q1 2023, South Africa is the most expensive G20 country to send $500 from (see Figure 19) at 7.81
percent, followed by Brazil recorded at 7.68 percent. The Republic of Korea remains the least expensive
sending country in this grouping, exhibiting a total average cost of sending $500 of 1.34 percent, followed
by Saudi Arabia (2.86 percent), Italy (3.59 percent), Japan (3.89 percent), Australia (4.02 percent), theUnited States (4.07 percent), Germany (4.23 percent), and France (4.47 percent). Of this group Brazil,
Canada, the United Kingdom, and South Africa exhibit costs higher than the Global Average in Q4 2022.
Figure 19 Average cost of remitting from G20 countries

Figures 20 and 21 display the total average cost of sending $500 to G20 countries over time and in Q1
2023, respectively. The average cost of sending $500 to the G20 countries that are included in RPW as
receiving markets stayed largely the same between Q4 2022 and Q1 2023, recorded at 3.66 percent in
Q1 2023.
Figure 20 Average cost of remitting to G20 countries

23Remittance Prices Worldwide - Issue 45, March 2023

For the past 5 consecutive years, the cost of remitting $500 to G20 countries is recorded below the Global
Average cost of sending $500. In Q1 2023, South Africa (5.13 percent) remains the most expensive
country in this grouping to remit to, followed by Türkiye (4.70 percent), Brazil (4.56 percent), and China(4.10 percent). Over the last 5 years, the total average cost of sending to G20 countries has decreased
by 0.52 of a percentage point (in Q1 2018, this figure was recorded at 4.18 percent).
Figure 21 Average cost of remitting $500 to G20 countries, by Country24Remittance Prices Worldwide - Issue 45, March 2023

Annex III – Tables ($500)
Table 6 – Global Average, International MTO Index ($500)

Table 7 – Cost of sending $500 from G20 countries

Table 8 – Cost of receiving $500 in G20 countries

25Remittance Prices Worldwide - Issue 45, March 2023

Annex IV – Prospects Index
Since Q1 2023, RPW data collection would be used to also monitor new services via a prospects
index. These new services could be candidates for inclusion in the main index in the future subject tothem meeting certain requirements. In Q1 2023, fifty-five new services originating from twelve sending
country were added to the prospects index, covering twenty-seven destination countries. Thirty-one outof all newly added services are collaborations between Banks and major MTOs, such as MoneyGram,
Western Union and Wise. These MTO-linked services consistently offer lower fees than their non-MTOlinked counterparts. The objective of this index is to keep track of the new entrants and new services, toget a sense of the market developments. In the past while we identified new entrants, the price and otherdata was not captured because these services did not meet the criteria for inclusion in the main index.
In Q1 2023, fifty-one services were moved from the Prospects Index and added to the main analysis.
Taken together, the Prospects Index now includes 57 services. Figure 22 shows the distribution of these
services by receiving region. Services destined for Sub-Saharan Africa and East Asia and Pacific makeup majority of the prospects index.
Figure 22 Number of Prospects Index services by receiving region

Average cost for sending $200 for the prospects index was 8.62 percent, higher than the global averageof 6.25 percent. Sixteen services were digital services, accounting for 28 percent of all services in theprospects index. Average cost for digital remittances was 5.76 percent, also higher than the global digital
remittances index of 4.72 percent. Figure 23 plots the average cost by receiving regions. The high average
cost is caused by two reasons. On one hand, services destined for Sub-Saharan Africa, traditionally ahigh-cost region, account for close to half of all services in the Prospects Index. On the other hand, as
mentioned in the previous section, collaboration between Bank and MTO services account for a large
share of the Prospects Index. Although their costs (11.32 percent) are much lower than their non-MTO

26

Remittance Prices Worldwide - Issue 45, March 2023

counterparts (21.04 percent), they are still high compared to services offered by MTOs directly (7.54
percent).
In Q1 2023, cheapest method to fund a remittance transaction among the services in the prospects index
was debit/credit card at 3.17 percent. According to Table 9, average costs of sending $200 via various
payment instrument are lower than their main dataset counterparts, with the exception of services sent
via bank account transfers, consistent with the sizable presence of bank/MTO services destined for SubSaharan Africa.
Figure 23 Average cost of Prospects Index services by region, sending $200 (%)

Table 9 Average Cost by Instrument Used to Fund the Transaction, sending $200
Sending method
Prospects Index
Number of services

Cash

Bank AccountDebit/Credit Card

Mobile Money

11.63
34

3.17
9

na
0

4.83
14

Table 10 Average cost by means of disbursing the funds, sending $200
Receiving method
Prospects Index
Number of services

Cash

Bank Account

10.79
33

5.64
24

27

Bank Account(same bank)

2.61
1

Mobile Walletna0Remittance Prices Worldwide - Issue 45, March 2023

Table 11 provides additional information for comparison, including the average costs using the services
included in the prospects index only, the average costs without these services as shown elsewhere in thisreport, and the average costs if these services would instead be included in the main analysis.
RPW will continue to monitor new services in the coming quarters as part of the prospects index. Overtime, these services will be added to the main analysis and indices, based on a combination of materialityand diversity criteria.
Table 11 A comparison of cost of sending $200 with/without the services in the prospects index
Prospects
Index

# of
services

Q1 2023 averages(Reported in the main section)

Would-be Q1 2023 averages
including prospects

East Asia & Pacific

6.03

18

5.70

Europe & Central Asia

2.85

2

6.59

Latin America & Caribbean

5.50

2

5.81

Middle East & North Africa

2.02

3

6.08

South Asia
Sub-Saharan Africa

5.10
12.68

5.70
6.58
5.81
6.06
4.58
8.41

Average total cost
Digital remittances index

6

4.58

8.62

26
57

8.35
6.25

5.76

16

4.72

28

6.27
4.73

Remittance Prices Worldwide - Issue 45, March 2023

Annex V – Corridors from Russia
RSPs in a few Russian corridors have resumed services. Out of the 13 corridors in the RPW database,data collection has resumed in 9 corridors, with a total of 44 services. The number of services per corridor
resumed to 4.9 services per corridor in Q1 2023. The countries to which services remain unavailable are
Estonia, Latvia, Lithuania, and Ukraine. Table 12 presents a comparison of corridor averages in Q4 2021,
Q3 2022, Q4 2022, and Q1 2023. Due to the ongoing Russia-Ukraine war, these services have been
excluded from the main analysis.
Table 12 Cost of sending $200 in Russian corridors in Q4 2021, Q3 2022, and Q4 2022

Russian Federation to Armenia
Russian Federation to
Azerbaijan
Russian Federation to Belarus
Russian Federation to Estonia
Russian Federation to Georgia
Russian Federation to
Kazakhstan
Russian Federation to Kyrgyz
Republic
Russian Federation to Latvia
Russian Federation to Lithuania
Russian Federation to Moldova
Russian Federation to Tajikistan
Russian Federation to Ukraine
Russian Federation to
Uzbekistan

13
14

Q4
2021
1.78

# of
services
2

Q3
2022
2.50

# of
services
1

1.77
1.15
6.27
1.91

4
5
6
6

1.00
0.96
1.00

2
3
1

1.0
0.93
-

1.47

5

0.96

0.90
6.90
6.57
1.56
2.13
4.30

6
5
5
5
4
6

2.65

7

Please note that this column is based on the new data categorization.
Please note that this column is based on the new data categorization.

29

Q4
# of
Q1
# of
2022 services13 2023 services14
1.70
1
2.50
1

0.99

6
7
7

1.00
0.99
1.00

6
7
6

3

0.93

7

0.99

7

4.14
0.98
2.10
-

4
2
3
-

0.93
0.93
1.41
-

7
7
2
-

0.96
0.99
1.17

7
7
2

-

-

3.60

5

3.10

3

1.38

1

Remittance Prices Worldwide - Issue 45, March 2023

The World Bank Group 1818 H
Street NW Washington, DC
20433 USA
www.worldbank.org
paymentsystems@worldbank.org
Telephone: +1 202 473-100030