How Expatriates Buoying Economy Of Developing Countries Through Remittance?

Non-resident Bangladeshis (NRBs) send money to Bangladesh have played a critical role in buoying the country’s economy during the pandemic, sending a record amount of remittance despite the challenges posed by Covid-19. The direct and indirect contributions of NRBs are one of the most key considerations in Bangladesh’s development. Bangladesh has become one of the world’s largest remittance recipient countries as a result of their tireless efforts.

Expat Bangladeshis sent home $2.1 billion in remittances last month, up 31.3 per cent year on year. This is the third month in a row that remittances have exceeded $2 billion. According to data from the Bangladesh Bank, November’s receipts bring the total inflows for the year to $19.8 billion, up 8.2% year on year, indicating that the country is on track to set a new remittance record. Last year, Bangladesh received $18.3 billion in remittances, the highest amount it has ever received.

Bangladesh is expected to receive a $20 billion money transfer to Bangladesh by 2020, according to the World Bank, making it the eighth-most remittance-receiving country in the world.

Why There Is Need Of Digital Payment System In All Business Sectors?

Digitalization and globalization, especially in the field of information and communications technology, have had a significant impact on the payment system. As a result, payment and settlement processes must strike the best possible balance between security and performance. Bangladesh is the world’s eighth-most populous nation. As per worldmeters.com, it has a population of 163 million people. The country is ripe for Fintech start-ups, with over 50 million Internet users and 131.1 million smartphone customers.

Because of the unknown consequences, a breakdown in the payment systems would obstruct the implementation of monetary policy, and the resulting systemic risks could jeopardize financial stability. So, there is a need for online money transfers to Bangladesh from expatriates.

What Is The Easiest Way To Receive Money From Abroad?

The concept of wallet interoperability refers to the ability to send money to Bangladesh online from a wallet to any merchant that accepts digital payments. At the moment, digital wallets operate in a closed-loop structure. Interoperability between DFS wallets is critical for the industry’s continued development.

Interoperability between MFS platforms, for example, would allow the ACE Money transfer wallet user to send money to another ACE Money transfer Mobile wallet user and vice versa. This will benefit the e-commerce industry by increasing digital payments and financial penetration. India’s efficient introduction of interoperable digital payment systems is one of the main reasons for the country’s digital economic transition.