Mapping remittance risks

For tens of millions of families, remittances are lifelines that fund food, rent, schooling, medical care and basic stability. Chubb’s 2025 report on the state of global remittances underscores that protecting remittance senders is key to safeguarding the flow of funds. Payment platforms and financial institutions have a clear opportunity to learn how the behaviors, concerns and expectations of these senders vary across regions so they can build trust, help reduce risk and capture long-term market share.

The scale of remittance flows continues to rise. According to the World Bank, officially recorded remittances to low- and middle-income countries (LMICs) were expected to reach $685 billion in 2024, growing 5.8% – a substantial increase from 1.2% growth in 2023. The Bank expected the flow to reach $690 billion in 2025.

But this growth is uneven across regions. In 2023, there was 7.7% growth in Latin America and the Caribbean, 5.2% growth in South Asia, and 1.8% growth in the East Asia and Pacific region. Sub-Saharan Africa, meanwhile, contracted 0.3%, the Middle East and North Africa fell 15%, and Europe and Central Asia shrank 10%.

These regional contrasts matter. Growth is strongest where digital adoption and corridor competition are evolving fastest, creating both opportunity and vulnerability.

Which remittance platforms outperform competition depends heavily on geography, regulation, cost and trust. Platform choice is rarely about features alone – it reflects how secure senders feel about the channel and how predictable the total cost of a transfer is.

Digital channels continue to expand their footprint as competitive pricing draws senders away from traditional cash-based operators. Data from the World Bank’s Remittance Prices Worldwide portal shows that the global average cost of sending $200 in Q4 2023 was 6.4%, with digital-only channels averaging 4.96% versus 7% for non-digital. Meanwhile, mobile money corridors – especially in Africa and parts of Asia – have pushed costs even lower. A recent cross-border remittance cost survey found that the cost of sending $200 via mobile money fell from 3.73% in 2022 to 3.54% in 2024. Further, there are more than 435 million active mobile money accounts that send money every month.

Across markets, apps that allow people to send money overseas remain widely used. However, data collected for Chubb’s report on global remittances shows that platform choice varies sharply by region, often aligning to perceived reliability, transfer speed and fee transparency.

The data highlights several notable contrasts:

• In some sender markets, cost sensitivity is the dominant factor shaping platform choice, with a significant share of respondents citing high fees as a recurring challenge
• In other markets, trust and security outweigh cost, particularly where cyber fraud is more visible

As Chubb’s remittance report notes, the landscape is fragmenting: Growth is rising, but trust is slipping. “There is a decline in trust in payment platforms, resulting in workers seeking new ways to send money abroad,” the report says.

This shift is redefining competition. Platforms cannot assume loyalty – they must earn it.

Cyber fraud is reshaping remittance behavior. Concern about scams now directly influences whether senders continue using digital platforms.

According to Chubb’s remittance report:

• 62% of senders to China are reducing digital platform use due to security concerns
• 57% of senders to India and 56% of senders to the Philippines report similar reductions
•  This is significantly above the global average of 52%

These numbers reflect a global pattern of fraud attempts, opaque fees, and limited recourse – factors that undermine trust in precisely the regions that are most reliant on mobile money. 

Chubb’s data parallels these findings:

• 20% of survey respondents cited security concerns as an issue when sending money abroad
• 25% of senders reported personally experiencing scams or frauds when sending money

Protection-oriented products – particularly insurance against loss and theft, and strong security measures online – are emerging as a decisive driver of trust for remittance senders.

As Chubb’s remittance report notes:

• The desire for remittance theft or loss protection is particularly pronounced, with 80% of global respondents indicating they would be more likely to use a remittance service offering this insurance
• Senders in Singapore (84%), the U.S. (83%) and Spain (82%) expressed very high levels of interest
• Senders to Vietnam (92%), Brazil (89%) and India (89%) also displayed high interest in using a remittance service if insurance is offered

Additional survey data reinforces the scale of this demand:

• 39% of survey respondents said strong security is the most important factor in determining whether they trust a remittance service 
• 33% said they would have higher trust in sending remittances abroad if offered loss and theft insurance

Regional differences in platform choice, risk perception and insurance demand give payment providers a roadmap to improve trust and expand market share:

1. Enhance cybersecurity in high-concern corridors: In the markets and corridors where fraud fears drive reductions in digital usage, platforms can invest in stronger authentication, fraud warnings, multilingual guidance and rapid-response recourse systems.
2. Integrate remittance theft/loss insurance directly within the transaction flow: Point-of-transaction insurance consistently drives higher adoption, especially in markets like Vietnam, India, Brazil, Singapore and the U.S.
3. Offer broader insurance bundles: Income protection, hospital cash and accident insurance resonate deeply with foreign and gig-economy workers across regions.
4. Improve transparency and communication: Clearer price disclosures, simpler user interfaces and multilingual support directly reduce disputes and increase trust.
5. Build targeted awareness campaigns: Many markets show strong interest in insurance yet low awareness of how it works. Platforms can work to fill the education gap.