In a submission made on Tuesday, New Delhi said one of the means to achieve cheaper, faster and more transparent and accessible cross-border payments including remittances is “promoting interoperability and interlinkages of digital payment infrastructures including fast payment systems”.
“Cost of remittance is an issue we have been raising. There is also a Sustainable Development Goal (SDG) on this,” said an official.
Lower transaction costs are key to reducing inequality within and among countries such as India since the global average cost for sending remittances is 6.18%, more than twice the SDG target. The SDG goal is to lower to less than 3% the transaction costs of remittances and eliminate remittance corridors with costs higher than 5% by 2030.
As per the submission, the global average cost for digital remittances at 4.84% is significantly lower than the cost for non-digital remittances and that out of total remittances of $860 billion in 2023, around 78% or $669 billion went to low- and middle-income countries. The Philippines and South Africa have also favoured such a work programme. The work programme should review the cost of cross-border remittances, trends and developments, and consider how technology, emergence of new market players, different types of providers and new channels, and consumer behaviour are impacting the cross-border remittance services, New Delhi said in its submission to the WTO.
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