How Is the International Money Transfer Market Evolving?

International transfer of money has been an expensive and arduous task for the longest time. From hidden charges, manual paperwork to dealing with a long chain of middlemen, the hurdles in the way were too many to count. However, the situation has changed remarkably in the past few years. Now, small to medium-sized businesses and individuals get to enjoy cheaper, faster, and value-added foreign money transfer services, which are all the benefits that once only the governments, banks, and large corporations used to enjoy as they had direct access to the foreign exchange market.

The role of international organizations in affecting the MTOs

MTOs (Money Transfer Operators) are the organizations that facilitate international payments and transactions by accessing cross-border banking networks or through their internal systems. International money transfer is generally referred to as remittances, and it includes all the current transfers in kind or in cash between non-residents and residents. You will learn the details of this in one of the top ba economics colleges that you enroll in.

At present, the fees of international money transfers through MTOs are falling because of the pressure from international organizations like the UN and G20. These organizations pay special attention to the remittances market because of its popularity with the low-wage earners and the role played by remittances in the economic growth of the emerging markets.

Other factors that help in bringing down the fees

New players coming into the market are increasing the competition for the Money Transfer Operators, as these new entrants use fees as the main differentiator to uphold their position in the market. In fact, with the MTOs building the business models purely on digital platforms, they have lower fixed costs, and their cleaner, modern technological operational channels offer a quick turnaround time to the consumers. 

With the industry increasingly resembling that of a commodity market in terms of its characteristics, the traditional players need to look for better ways to make themselves stand out from the competition. You will know more about this at the m.sc colleges in Chhattisgarh.