What is a remittance?

A remittance is money sent from one country to another, most often by someone supporting family or friends abroad. In Canada, the Financial Consumer Agency of Canada describes sending money to someone in another country as sending a remittance. The World Bank uses a broader economic definition, but the main concept is the same: money earned in one place (such as Canada) gets sent to someone in another country.

Remittances are a common form of cross-border payment. They are often used to cover everyday needs such as rent, groceries, school costs, medical bills, and emergency support. At the global level, they are also massive in scale. The World Bank says remittance flows to low- and middle-income countries reached an estimated $685 billion in 2024, while total global remittance flows were estimated at $905 billion.

For many senders, remittances represent a recurring responsibility. Whether the money is being sent for rent, tuition, or emergency support, factors such as cost, delivery method, and timing are key considerations.

In a traditional remittance setup, the sender uses a bank or money transfer provider to initiate the payment. That provider then routes the money through its network so the recipient can receive it as a bank deposit, cash payout, or card credit. Canada’s FCAC notes that delivery time can vary from minutes to several days depending on the service, destination, and speed option selected.

The World Bank’s Remittance Prices Worldwide database estimates that the global average cost of sending remittances is approximately 6.49% of the amount sent. In many cases, this does not include exchange-rate markup, fees charged in the receiving country, and a potential additional premium for faster delivery.

That means the advertised transfer fee is not always the true cost. In many cases, the sender only focuses on what they pay upfront, while the real difference shows up in how much the recipient actually receives. That is one reason remittance users increasingly look beyond traditional providers when comparing options.

In addition to traditional remittance services, digital transfer methods have become more widely used. These can include crypto assets and stablecoins, depending on platform availability and regulatory context. Some digital transfers operate continuously rather than being limited to bank processing windows. They may also provide different options for how recipients access or convert value, depending on local infrastructure and platform support.

These methods do not eliminate all costs. Network fees, conversion costs, and local withdrawal options can still affect the outcome. The experience may vary based on the asset, network, and how the recipient accesses funds.
 

For Canadian users, platforms such as Ndax offer access to digital assets and blockchain networks that may be used in cross-border value transfer workflows. For example, a user may fund in CAD, buy a supported asset, and transfer it over a blockchain network.

As of April 2026, Ndax advertises a flat 0.20% trading fee and free CAD deposits. These are platform features that may be relevant to users comparing the costs of acquiring and moving digital assets.

Ndax also supports USDC on Polygon, Ethereum, and BNB Smart Chain, giving users flexibility when balancing speed, network costs, and recipient compatibility. That network choice may matter for users evaluating different blockchain-based transfer methods.

A remittance involves considerations such as reliability, cost, and how the recipient can access funds. Traditional providers may still be suitable in many cases, especially where the recipient needs cash pickup or direct bank deposit through existing rails.

That does not mean digital rails replace every traditional remittance method. It does mean Canadians have different options for moving value across borders. As stablecoins and blockchain-based payments receive more attention, understanding how these systems work may provide useful context for Canadian users.