Crypto remittance is changing how money moves internationally.
As the world becomes even more interconnected, Bitcoin (BTC) and other cryptocurrencies offer something extraordinary. Instead of dealing with banks, go-betweens, or hefty exchange rates, Bitcoin gives users the ultimate freedom over their funds.
Not only is sending BTC fast and transparent, but you don’t need a bank account to get started. Which, for the world’s unbanked population, is a big deal.
So, what are crypto remittance payments, and what do they mean for those sending money abroad? We'll walk you through everything you need to know, from how to send Bitcoin to how to transfer money to someone in another country with crypto using one of our BTC ATMs (BTMs).
Digital remittance is a massive global market.
If you’re unfamiliar with the term, remittance payments basically cover any payment or transaction. In most cases, when people use the term remittance, they’re describing sending money internationally, usually by individuals working in one country, to their family and loved ones back home.
Since 2015, remittances have been the largest flow of external capital* (more on this by clicking the link) into low and middle-income countries (LMICs). These payments even outweigh Official Development Assistance (ODA) programs.
This means that remittances bring in more money than government aid in most of the Global South.
All in all, the total digital remittance market is worth around $150 billion, according to statista.com*.
Unfortunately, traditional forms of remittance, like wire transfers or money transfer services, present unique challenges. These methods often create difficult roadblocks for the most vulnerable of the world’s population.
For example, an international wire transfer can take as long as five days* (see more on wire transfer times at inaa.com) to complete — and it’s similar for money transfer services like Western Union.
Add to this the high transaction costs related to these types of transfers, and you can see why this necessary element of the global economy presents troublesome challenges for everyday users.
Traditional remittance payments offer an imperfect solution. For those who send money overseas regularly, these methods are often a source of unnecessary stress.
Here’s what we mean. Maria is a nurse working in the U.S. She tirelessly toils shift after shift, saving money to send back home to the Philippines. She relies on traditional remittance services to get the job done.
Maria has limited time off work. Now, she has to spend hours waiting in line at the remittance center instead of with her family or resting. Once she finally gets to the front of the line, she’s shocked by the high transaction fees and unfavorable exchange rates.
Despite the steep costs, Maria proceeds with the transaction. Her family depends on this money.
However, just a week later, her mother called, worried the funds had yet to arrive.
She spends another few hours on the phone trying to track the transfer. Maria learned that someone along the way delayed her transaction due to additional processing requirements.
Frustrated, she can’t help but think that there has to be a better way.
It’s an unfortunate truth that this situation is not fiction. While Maria might not actually exist, millions of people like her deal with this reality daily.
Here is where we introduce the hero of this story: crypto remittance payments. Bitcoin and other cryptocurrencies represent a new frontier for remittance. In this new era, those financial hurdles are less challenging, giving those who need it most a reliable way to support their families.
To say Bitcoin is changing remittances is an understatement. Now more than ever, people are relying on digital payment channels to send and receive money.
But there’s a catch.
While these digital remittance systems leverage advanced financial technology, they still rely on traditional banking institutions.
It’s kind of like adding new tires to a horse-drawn buggy. It's an improvement, no doubt, but you’re still waiting days to get anywhere. Bitcoin (BTC) and the blockchain tech that powers it offer a completely new vehicle. Instead of waiting days for the traditional banking infrastructure to settle a transfer, the Bitcoin network handles them in minutes.
So, what is blockchain remittance? It’s a way to send and receive money abroad using cryptocurrencies like Bitcoin. These methods are often faster, more secure, and more accessible, removing roadblocks present in traditional financial systems.
As you can imagine, this is a massive benefit for remittance payments. Let’s explore more differences of traditional methods vs. crypto solutions:
So, if sending payments via BTC is faster, cheaper, and more accessible, why aren't more people doing it?
Well, they are.
Traditional banking services are expensive or simply inaccessible in many parts of the world. In these areas, crypto remittance is becoming the preferred way to send and receive money.
Wondering how to send Bitcoin? We’ve got you covered in the next section.
Let’s explore the simple steps anyone can follow to send Bitcoin:
Note: If you’re using a BTM, only send funds to your wallet address. Never send BTC from a BTM directly to someone else. Always send it to yourself first.
If you notice, there is no mention of the recipient's or the sender's location. That’s because these networks operate in a geographical-agnostic manner. It’s a big word, but it basically means that where you send and receive funds from doesn’t matter.
As long as you have an internet connection, you can participate! So, if you’re wondering how to transfer money to someone in another country with crypto, it’s virtually the same as any other crypto transaction.
As a note, while the Bitcoin network operates globally, local laws and regulations regarding BTC and ATM use can vary.
What does it mean to be unbanked? Essentially, it means you aren’t served by a bank or traditional financial institution. All in all, there are over 1 billion unbanked individuals* (see more on this by clicking the link) around the world.
For most of them, it’s a matter of access. Crypto remittance offers a way to send and receive money without dealing with traditional financial systems.
Of course, to interact with the network, you need to get your hands on some BTC.
While you can use a crypto exchange to buy BTC, you will need a bank account. For those without access to a bank account, this stops their crypto journey in its tracks. Of course, that’s just one way to acquire BTC.
There are also Bitcoin ATMs, which, as you might guess, is something we know a lot about here at Bitcoin Depot.
Want to know how to send BTC using one of our Bitcoin ATMs?
Here are the five easy steps using the Bitcoin Depot mobile app without a bank account:
Once you have your BTC, you’re free to do whatever you please with it. You can send it, save it, or spend it. No matter what you choose, you don’t have to get a bank involved.
Going from cash to crypto remittance shouldn’t be a struggle.
If you’re one of the millions worldwide who send or receive money abroad, relying on a bank just isn’t efficient. You wait, you spend more than you should, and you often need to jump through hoops to send your funds.
Bitcoin offers a better way, one where remittances don’t go through intermediaries or less-than-ideal exchange rates.
But, to really make this system work for the world’s unbanked, we need a way to turn cash into BTC. That’s where Bitcoin Depot can help. We operate the largest Bitcoin ATM network, with over 8,300 BTMs throughout the United States, Canada, and Puerto Rico (as of October 2024).
With so many locations available, you’re never too far away from safe and convenient purchases of BTC with cash.
Ready to get started? Find your nearest BTC ATM today.
*The information provided above is for informational purposes only. The inclusion of any particular 3rd party site does not imply an endorsement, sponsorship, or partnership between Bitcoin Depot and the sites listed above. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, we do not guarantee the reliability of any 3rd party’s information.