Options for Refugees to Send Money Home

Syria, Haiti, Latin and South America, there are no shortage of crisis zones with refugees fleeing all manner of violence and tragedy. The developing world is tackling these challenges to the best of its abilities, and with help from modernized nations, has made some progress. Still, there are innocent lives trapped in the strife created by these conflicts.

Those people have families and friends and an entire support structure working with them to make sure everyone stays safe. An important pillar in that structure is income that can be sent overseas. The economics of being a refugee are complicated, but navigating that system is a part of their survival.

Where Traditional Banks Have Failed

Traditional banks do a great job providing for the needs of the local populace, but consistently fail at addressing the concerns of refugees. For starters, fees and exchange rates to convert currencies simply aren’t competitive with other services. Combined with the inability to offer services for every nation, banks just can’t keep up. International sanctions make it impossible for banks to convert all currencies or work with nations on bad terms with the United States.

Many refugees are still struggling to adapt to life in America, some may not have IDs or bank accounts. Those underbanked individuals either don’t understand the system, don’t earn enough income, or are otherwise dependent on someone else.

Options

Fortunately, refugees have a few options to help those back home. Many opt to send money online, either through a digital wallet or through an exchange. These accounts don’t function like bank accounts and allow individuals to transfer payments they received back to the accounts they maintain in their home nation. The exchange rates are a fraction of the cost, so those back home keep more of their money.

Cryptocurrency can help fill in where other methods have failed. Cryptocurrency is fairly easy to move internationally. There are some complexities to turning it into real cash, but some international retailers will accept cryptocurrency as a form of payment. As a result, recipients can put money to use within hours of it being transferred. It’s also a method to circumvent any sanctions that would otherwise prevent the free movement of cash.

In extreme cases, some refugees will rely on handoffs. They will physically mail cash, or sometimes trade cash going to friends and family to a contact living close by who agrees to walk it to the recipient. These exchanges can be dangerous if there are no guarantees backing the handoff. What if the middleman shuts off their phone?

Some money transfer companies offer handoff services as well, which tend to be safer since the middleman is paid to do the transfer. A guaranteed source of income helps cut down on the likelihood of theft, and provides a bit of security. Plus, companies with the infrastructure can provide proper alerts that a handoff occurred.

Final Thoughts

Refugee crises are international concerns with real problems faced at home and abroad. These refugees have had to cobble together their own support structure, utilizing digital transfers and a complicated system of trust to facilitate transfers. That structure may not last as political tensions evolve. In the meantime, banks, businesses, and regular people can help by educating these refugees and providing the support structure they need to take care of friends and family back home.