What are multi-currency accounts and Remittance services?

By Remitbee - Jan 30, 2024

Remittance and Canada

Remittance most commonly denotes the transfer of money by foreign workers to their country of origin. It is a crucial component of global economic dynamics, sometimes forming a significant portion of revenue for developing countries.

In the context of Canada, a country known for its diverse and multicultural population, remittance holds significant importance as a means of supporting families and communities across the globe. The number of work permit holders through either of Canada's flagship work programs, the Temporary Foreign Worker Program and the International Mobility Program, rose by 81% from 531,700 in 2010 to 963,400 in 2021.

As a prominent destination for immigrants and temporary foreign workers, Canada is both a sender and receiver of remittances, contributing to the intricate web of international financial flows.

According to the G20 National Remittance Plan for 2021, published by the GFPI, roughly 15% of Canadians sent money internationally on a regular basis in 2020 using various means, including financial institutions (33%), PayPal (28%), and other online providers like Western Union or Wise (18%).

In 2023, according to the World Bank, India topped the list of remittance recipient countries, racking in $125 billion, followed by Mexico and China at $67 billion and $50 billion, respectively.

What is a Multi-currency account?

A multi-currency account is a bank account that allows the account holder access to multiple currencies - the holder can make payments, spend, receive, and hold currencies in multiple denominations without the need to open a new account overseas.

A multi-currency account can benefit expats or temporary foreign workers who regularly send remittances back to their country of origin. The benefits of a multi-currency account are closely related to the simplicity and convenience of managing multiple currencies in a single platform and its cost-effectiveness when compared to using multiple accounts.

What are Remittance Service Providers?

Remittance service providers facilitate remittance or the act of sending money back to a country of origin by a person working abroad. Remittance services usually accomplish this through international electronic money transfers. Their services are specialized and often incur lesser fees than traditional banking routes.

Like multi-currency accounts, Remittance services allow users to conduct transactions and exchanges in multiple currencies following real-time exchange rates. These services are tailored towards remittances or people who use cross-border payments, so they are incentivized to charge competitive fees. The integration with digital platforms and apps also makes them a convenient option to conventional banks.

Why Remitbee is one of the hottest Remittance Service Providers currently in the market

Remitbee is one of the rising stars in the world of remittance, garnering positive reviews with its proven record of seamless money transfers to over 50 countries worldwide, including India, Sri Lanka, and the Philippines.

The platform distinguishes itself through its commitment to user-friendly and efficient services, offering a seamless digital experience and accessibility for users of varying technological backgrounds.

The company hones its competitive edge with competitive exchange rates and low transaction fees, making it an attractive option for cost-conscious individuals.

Remitbee's commitment to transparency and security further enhances its appeal, instilling confidence among users who prioritize the safety of their financial transactions. The platform's dedication to innovation, customer satisfaction, and its agile response to market demands have collectively contributed to its status as a popular remittance service provider in a highly competitive space.

Conclusion

Multi-currency accounts and Remittance service providers play a vital role in facilitating money transfers between Canadians of different backgrounds and their families or business partners in foreign countries. As the demand for efficient cross-border financial transactions continues to rise, these providers, including notable ones like Remitbee, are key players in facilitating seamless and cost-effective cross-border money transfers.