Thanks to e-commerce, immigration and money transfer apps like Transfergratis, Canadians are sending more and more money abroad. A recent study by Payments Canada showed that one in five Canadians made an international transfer in 2023, an increase of 33% on 2022. Although the study does not specify the total amount of these remittances, the financial significance is undeniably considerable. Indeed, in 2023, 20% of Canadians made cross-border transactions, compared with 15% in 2022, and this growth is evolving over time. So why the increase?
I - The growth drivers
Online commerce plays an important role in this increase. Jon Purther, Director of Research at Payments Canada, explains that Canadians are buying more products and services online from international sellers. According to him, “it’s mainly thanks to the growth of e-commerce that we’re seeing this increase”. Immigration also contributes to this trend, as the arrival of new immigrants increases remittances to their families. Thanks to services like Transfergratis, they can send money quickly and easily to Africa, making it easier to manage their family finances.
Purther notes that this is leading to a sharp rise in person-to-person payments internationally. After the United States, which accounts for 50% of transfers, the main destinations for funds sent by Canadians are India (12%), China (10%) and Africa (10%). This shows the importance of immigrant communities in these transfers.
These dynamics, driven by e-commerce and immigration, are supported by increasingly high-performance money transfer tools tailored to users’ needs.
II - Constantly evolving transfer tools
Today, Canadians have a variety of convenient options for transferring money abroad, including traditional banking services or specialized platforms such as Transfergratis. These solutions facilitate money transfers by making them faster, easier to use and often more affordable, meeting the expectations of users looking for practicality and efficiency.
By 2023, money transfer apps have taken on a major role, accounting for 31% of international money transfers between individuals. By comparison, traditional services such as Western Union now account for just 13%. This shows the extent to which habits have changed, and people now prefer more flexible and secure digital solutions.
Transfergratis stands out for its services tailored to the needs of its users, particularly when it comes to sending money to Africa. Its great advantage is the absence of fees. Unlike other services that charge high fees, Transfergratis lets you send money for free, so you can maximize the amount of money sent and received by your loved ones. What’s more, transfers are fast because the money arrives instantly. The interface is simple and easy to use, even for those who are not very comfortable with technology. This makes the experience enjoyable and accessible to everyone. Last but not least, transfers are only made at today’s rates, so you can send funds with clear, competitive rates, with no nasty surprises.
With these advantages, Transfergratis is a fast, convenient and affordable solution for sending money. These innovations bring communities and their families closer together, no matter where they are in the world, but what about crypto-currencies in money transfers?
III - The state of crypto-currency
Despite expectations, crypto-currencies like bitcoin are not yet a popular way to send money abroad. According to Payments Canada, 72% of Canadians have never used a virtual currency for international transfers, and 67% have no plans to do so. Jon Purther points out that “we thought it would be an easy way to move money, but it’s not”.
However, initiatives such as PayPal’s stable cryptocurrency, backed by the US dollar, could change the game. Recently launched, it has already been used for transactions reaching US$328 million in April 2023. By December 2022, around 10% of Canadians owned bitcoins, according to the Bank of Canada, but their use remains primarily for investment rather than international payments.
In conclusion, the increase in money transfers from Canada to other countries is due to e-commerce, immigration and improved transfer tools. Solutions like Transfergratis are responding to this growing demand by offering fast, secure and cost-free services, making it easier to manage your family’s international finances. Don’t let high fees or delays complicate your transfers.
Choose Transfergratis for a fast and simple experience, and stay connected with your loved ones across Africa.
