CHICAGO–There has been a significant upsurge in the number of the use of cryptocurrencies in international remittances, according to a new analysis.
In a survey of 707 people by the Cryptocurrency research company Clovr, the company said it found new trends developing in the destination of transfers, the purpose of the transfers as well as the mediums (including cryptocurrency) by which the money was sent.
Clovr said it found roughly half of all surveyed people indicated that they use PayPal and money transfer services such as Western Union, compared t, 25.7% who use traditional bank wire transfers or credit union, 15.8% who use cryptocurrency,12.2% who use prepaid cards, 11.8 %who use check or money order via mail, 11.5% who use check or money order online, 8.9% who use cash via mail, 6.1% who use traditional wire transfer via post office, and 1.9% who use other methods.
Clovr said cryptocurrency offers the potential for substantial interruption in the remittances market, and to illustrate the point said its analysis found that in order to send $500 abroad, banks charge $52.05 on the average, compared to $30.75 for money transfer operators, $34.05 for the post office and $16 for mobile operators. Customer satisfaction was pegged at 93.3% for online services, 84.1% at money transfer services and 73.3% with traditional wire transfer, via bank or credit union.
The survey revealed 20 countries receiving most remittances from the U.S. in 2017, with the top 10 being Mexico, China, India, Philippines, Vietnam, Guatemala, Nigeria, El Salvador, Dominican Republic and Honduras. As expected, the breakdown of these remittances shows family taking the highest percentage at 76.8%, Clovr reported.
The survey also found a significant gender knowledge gap on the subject of cryptocurrencies among non-users as men continue to dominate crypto adoption.