Affordable and traceable international remittance in Serbia
In 2017, the global average fee per remittance transaction was at 7.13% – more than double the UN’s Sustainable Development Goal’s target of below 3%.
Whilst expensive, international remittances provide a lifeline to many people and economies; in close competition with aid, money sent home by workers abroad is one of the largest financial inflows to developing countries. As global migration reaches an all-time high, accessibility and affordability of remittance, as a financial instrument, is more important than ever.
AID:Tech’s remittance solution is developed in partnership with UNDP Serbia and part-funded by The Rockefeller Foundation. The solution launches in September 2018.
When sender remits $50 to friends and family at home, they can determine where and how the money will be spent. They can opt to remit for a selection of uses including utilities, such as electricity and gas and grocery purchases, which recipient can make purchases in their own time online or in-store.
This approach serves to achieve multiple objectives:
- To reduce remittance fees to below 3%, in line with UN’s Sustainable Development Goals No. 10.C.
- To provide stakeholders, including the city administration of Nis, with transparency and data into remittance inflow that constitutes approx. 9% of the country’s GDP.
- To offer conditional payment capabilities.
- Re-engage Serbian Diaspora with communities at home.
In partnership with UNDP Serbia