What is a remittance? Learn how to send money abroad

In simple terms, a remittance is an international money transfer, usually by someone working abroad back to their home country. This money is typically sent to family members or friends to help cover living costs. For many people, knowing what remittances mean is the first step to finding a way to move money across borders without losing a lot of it to high fees or exchange rates.

International transfers have made it easier to support loved ones from afar, but the jargon surrounding global payments can still feel overwhelming. Whether you're looking for the best remittance service in the UK or simply want to know how it works, we're here to help you navigate the process with clarity.

The information provided is accurate as of 25 February 2026. Exchange fees, remittance fees, and fair usage limits may apply depending on your plan. T&Cs apply.

Remittance meaning: what you need to know

The word 'remittance' comes from the term 'remit', which means to send money in payment for a demand, account, or draft. While it can technically refer to any payment, it's most commonly used today to describe money sent by migrants back to their home countries.

These transfers are a lifeline for many families. According to the International Monetary Fund (IMF), remittances can sometimes make up a large portion of a developing country's GDP. They help pay for essentials like food, housing, education, and healthcare.

Inward vs outward remittances

To understand how remittances work, it helps to look at the direction the money is moving:

• Outward remittance: this is when you send money from your current country (like the UK) to someone in another country
• Inward remittance: this is when you receive money into your account from someone based overseas

How remittances work: the step-by-step process

Sending money across borders is more complex than a domestic transfer because it often involves moving between different banking systems and currencies. Here's a breakdown of the process:

1. Initiation: the sender chooses a provider and provides the recipient’s details
2. Payment: the sender pays for the transfer, as well as any associated fees, via a card or bank transfer
3. Currency exchange: the provider converts the money into the recipient's local currency
4. Delivery: the money is moved through international networks and made available to the recipient

How long it takes depends on the technology used. Older systems may take 3–5 business days, while transfers between friends with the same provider can be done in seconds.

Revolut-to-revolut transfers usually arrive in less than 20 seconds.

Remittance vs bank transfer

You might be wondering about the difference between a remittance vs bank transfer. While a bank transfer is a method of moving money, a remittance is the purpose or the act of sending that money home. You can send an international remittance via a traditional bank transfer, but you can also use dedicated money transfer apps or even cash pickup services.

Using traditional bank transfers for remittances often means relying on the SWIFT network. While secure, using this network can be slow and expensive because of the intermediary banks along the way, who may take a cut of the money.

How to send an international remittance from the UK

If you want to know how to send an international remittance, you've got several options available in the UK. The right one depends on how much you're sending and how quickly you need it to arrive.

1. Money transfer apps

Digital-first providers have changed the landscape of global payments. These services are managed entirely through apps or websites. They usually give a clear breakdown of their specific exchange rates and fees before a transaction is confirmed. Because they often use local payment networks instead of traditional global systems, the time it takes for funds to reach a recipient can vary significantly between different providers.

2. Traditional banks

Most UK banks allow you to send money abroad via their online banking portal or app. Many users find this a good choice because it uses their main bank and online portals. The total cost can depend on the type of account held or the specific destination of the funds.

3. Cash pickup services

For recipients who don't have a bank account, some services allow you to pay online so they can collect your transfer in cash from a local agent. These are convenient, but they may also carry certain fees.

Understanding remittance fees and costs

You might be wondering: how can I make a cheap remittance payment? The total cost of sending money abroad is usually made up of 3 components:

The transfer fee

This is a flat fee or a percentage of the amount you're sending. Some providers offer 'fee-free' transfers, but make their profit by offering a poor exchange rate. It's important to check the total amount the recipient will‌ end up getting.

The exchange rate mark-up

Most providers don't give you the mid-market exchange rate (the one you see on Google). Instead, they add a mark-up to that rate. Even a small difference in this rate can influence the total amount your recipient receives.

At Revolut, we offer a competitive exchange rate and show you exactly what you're paying for before you hit Send, so you can make an informed decision.

Hidden intermediary fees

Most traditional banks use the SWIFT network for international transfers. The network involves intermediary banks, which may deduct their own fees from your transfer as it passes through them.

Want to learn more about the costs of global transfers? Read our guide to the cheapest way to transfer money internationally.

Choosing the best remittance service in the UK

To find the right provider for you, focus on these 4 key factors:

1. Cost: what's the combined cost of the fee and the exchange rate mark-up?
2. Speed: does the money need to be there instantly, or can it wait a few days?
3. Convenience: is the app easy to use, and does it save your recipient's details?
4. Safety: is the provider regulated by the Financial Conduct Authority (FCA)?

If you're sending large amounts, like for a property deposit or business investment, it's even more important to find a service that offers high-tier security and support. Learn about transferring large amounts of money with Revolut.

Send an international remittance with Revolut

Sending money home should be as simple as sending a text. Our mission is to remove the friction and high costs typically associated with international transfers.

With us, you can send money to over 160 countries in more than 70 currencies. If you're sending money to another customer on Revolut, the transfer is instant and free. For transfers to non-Revolut friends, we use local payment systems whenever possible to make sure your money arrives in their bank account quickly and affordably.

Learn more about sending money to a bank account.

How to get started with Revolut

If you're ready to send your first remittance with us, the process is quick and entirely digital:

1. Download the app: get the Revolut app from the App Store or Google Play.
2. Create your account: sign up and verify your identity with a quick photo of your ID and a selfie.
3. Add money: link a UK bank account or debit card to add money to your Revolut balance.
4. Start the transfer: go to the Payments tab, tap the + symbol in the top-right corner, and select International.
5. Enter details: choose the country and currency, then enter the recipient’s details.
6. Review and send: check the live exchange rate and the estimated arrival time. Once you've double-checked the details, tap Send.