# Remittance

*Banking & Payments — Finicade finance glossary*

A remittance is money sent home by someone working abroad, and in aggregate it exceeds foreign aid to developing countries by a wide margin. Costs are the policy issue: the global average charge is around 6%, against a UN target of 3%, with corridors into parts of Africa costing double that. Every percentage point saved is billions returned to some of the world's lowest-income households.

**Also known as:** remittances, money transfer home, migrant remittances

**Related terms:** [Cross-Border Payments](https://finicade.com/glossary/cross-border-payments), [Correspondent Banking](https://finicade.com/glossary/correspondent-banking), [Unbanked & Underbanked](https://finicade.com/glossary/unbanked-and-underbanked), [Exchange Rate](https://finicade.com/glossary/exchange-rate), [Emerging Markets](https://finicade.com/glossary/emerging-markets)

Source: https://finicade.com/glossary/remittance