NEW YORK—The COVID-19 pandemic has led to an increase in the number of remittances sent worldwide, including a rise in cryptocurrency use for the service.
Recent research by Pymnts and Stellar Development Foundation has found that almost 60% of individuals that were sending remittances before the pandemic have increased the number of payments during the pandemic. With U.S. consumers totaling $76 billion annually in remittances and fees continuing to climb, more users are considering cryptocurrency as an alternative, according to the analysis.
The survey included 2,100 consumers that were utilizing remittances and found that 70% of those surveyed were paying fees to send money internationally, “with 41% paying a percentage fee averaging 6.2%, and 28% paying a fixed fee that averages $14.80. In aggregate, the cost to U.S. consumers is $3.5 billion,” according to the report. “While 30% of respondents stated that they do not pay a fee, they may be paying exchange rate costs.”
Almost a quarter of the those surveyed (roughly eight million individuals) who sent payments internationally used at least one form of cryptocurrency to do so, and a full 13% responded that they preferred to use cryptocurrency for remittances to other countries, ETF Trends stated in its analysis.