Why Do Expats Pay High Fees? And How Can They Reduce Them Using Digital Solutions

Sending money to family abroad is essential for millions of expats around the world.
But what many do not realize is that a large portion of this money is lost to the high fees imposed by traditional financial systems.

Global Remittance Volume

World Bank reports indicate that the number of migrants worldwide is estimated at around 300 million people in 2025, which is about 3.6% of the world’s population.

Global financial remittances reached approximately $905 billion in 2024, a huge figure reflecting how millions of households rely on this money as a primary source of income.

Of this amount, around $685 billion was sent to low- and middle-income countries, making these remittances a vital element in supporting the economy in those countries.

Regions Highly Dependent on Remittances

In regions like the Middle East and Africa, remittances represent a key economic lifeline:

• In the Middle East and North Africa, remittances exceeded $64 billion in 2024, with Egypt leading at around $32 billion.
• In Sub-Saharan Africa, remittances reached about $54 billion, serving as a main source of foreign currency in countries like Nigeria, Ghana, and Kenya.
• Gulf countries are among the largest global senders due to the presence of millions of migrant workers.

The Problem: High Fees and Slow Systems

Despite this massive volume of remittances, costs remain significantly high:

• High transfer fees
  The global average cost of sending money is about 6.5% of the amount sent, which equals around $13 when sending $200.
• Higher fees in some regions
  In Sub-Saharan Africa, costs can reach about 8.78%, among the highest rates worldwide.
• Unfair exchange rates
  Additional charges are applied through currency differences without full clarity for the user.
• Slow processing
  Transfers can take days to complete, especially through traditional banks.

Global Goal to Reduce Fees

The United Nations has set a clear goal within the Sustainable Development Goals:
👉 Reduce international remittance fees to less than 3%

But the current reality remains far from this target, as the global average is more than double the targeted rate.

The Solution: Digital Transfers and Stablecoins

Here the power of modern technology becomes evident, particularly:

• Stablecoins
• Blockchain-based transfers
• Decentralized systems

These solutions provide:

✔ Significantly lower fees compared to the traditional 6.5%
✔ Near-instant transfers instead of waiting for days
✔ Price transparency
✔ No need for a bank intermediary

From Crypto to Cash Easily

Using cryptocurrencies is no longer as complicated as it used to be.
Now it is possible to:

• Send money within minutes instead of days
• Significantly reduce costs
• Convert money to local cash easily through trusted providers or direct transactions (P2P)

How Does AltraPay Provide a Practical Solution?

AltraPay offers a comprehensive environment that helps users to:

• Send money globally quickly and efficiently
• Reduce costs compared to traditional methods
• Choose the best available service provider
• Conduct direct transactions without intermediaries when needed

Conclusion

With over 300 million expats and remittances exceeding $905 billion annually, it is clear that the traditional system is no longer the optimal solution.

Fintech and blockchain offer a real alternative, enabling users to send their money faster, at lower costs, while preserving more of its value.