Even in 2025, global money transfers are a lifeline for millions around the world. In a time where digital payments dominate and countries are becoming cashless, one might expect physical cash transfers to fade away. Yet, cash remittance is showing remarkable resilience, and it persists as a reliable method for sending and receiving money across borders.
Low-cost cash remittance
Sending cash internationally has historically been an expensive thing to do, with wire transfers going through various intermediaries that each take a cut. Money Transfer Operators quickly became a popular way to send cash around the world, and rising competition suppressed fees and kept them low. In local shops or post offices, it was common to hand over cash and send money to family who live on a different continent. The gains in technology and improving operational efficiency meant that it was now relatively frictionless, albeit having the reputation of costing more than digital transfers.
Cash vs. wires: A cost comparison
The traditional international bank wire may appear to be more direct, but it often involves substantial costs of its own. Sender banks charge outgoing wire fees, intermediary banks take their cut, and the recipient’s bank could also impose charges. Exchange rates often include hidden markups, though these aren’t too different from ordinary remittances.
What’s surprising is that, when taking into account the full amount of costs (both direct and indirect), the best way to send money to the Philippines from the USA may well be with cash. Because modern fintechs are now outcompeting high street banks in their lean business models, fees can be lower than traditional wires – particularly when considering their promotional offers and more transparent pricing models.
The reality of financial access
The real reason behind the ongoing use of cash remittance is the reality of financial inclusion – or the lack thereof. Millions globally are “unbanked,” meaning they do not have an account with a formal institution. For them, receiving a digital transfer or bank wire is simply not feasible.
The Philippines, which many perceive as being quickly developing, is a good example. As recently as 2021-2022, around 44% of Filipino adults (roughly 34 million people) were unbanked. While progress is certainly being made, solutions like online money transfers remain a much more realistic and accessible vehicle than, say, HSBC.
The hidden costs of banking: ATM withdrawal fees
Even for those who do have bank accounts, accessing remitted funds isn’t always that simple. Using international bank cards at ATMs abroad can incur hefty fees, but even local ones can too. Thailand is a good example, where most Thai banks charge a steep fee of ฿200-฿220 (around $6-7 USD) for each withdrawal made. Surcharges vary, but ultimately, it’s not that simple to withdraw cash, even in some developed nations.
The value of cash in global money transfer
Digital transfers offer speed and convenience, but cash remittance has an enduring power. Sometimes, remittance firms also offer digital transfers and price them accordingly. But, two considerations that need to be taken into account are the recipient’s accessibility, and whether any hidden costs lurk between them and the cash in its usable form.