Research from WorldRemit, a leading global payments company, has found that people sending money from the US, the UK and Canada continue to adjust their remittance habits to a new way of living due to COVID-19.
The results from WorldRemit’s study of more than 3,000 of its customers paint a striking picture of the importance of remittances to the loved ones of immigrants, alongside the impact we know it has on the global economy.1 68% of respondents sent money abroad at least monthly, with a further 28% sending multiple times a year.
The pandemic has had a significant effect on the amounts of money sent, particularly for the key reasons people send money abroad.
When asked to provide context to the reasons people send money home to loved ones, the most common were daily expenses, gifts, medical expenses and education. As a result of COVID, people sent more money abroad for the following categories during 2021:
- 44% cited the amount they send for medical expenses has increased
- 41% cited the amount they send for daily expenses has increased
- 38% cited the amount they send for utilities increased
- 35% cited the amount they send for education increased
The most common countries remittances sent by our respondents were to the Philippines (18%), Nigeria (11.5%), Ghana (10.5%), which have all seen significant GDP growth – 4.5% in the Philippines,2 1.5% in Nigeria3 and 5.1% in Ghana.4 This trend is likely to continue as these countries continue to recover rapidly from the COVID-19 pandemic.
Karen Jordaan, Head of UK at WorldRemit said:
“We understand the unique challenges migrants face on a day-to-day basis when supporting loved ones overseas, whether it be helping to ensure their family members get access to medical care or have money to pay for basic cost of living expenses.
“WorldRemit understands the needs of our customers and strives to offer a safe, fast and convenient service. We are also encouraged by our customers and how they are investing in the future, namely education and new business ventures.”