What are Remittances? A Complete Guide for 2025
What are Remittances? A Complete Guide for 2025
Every day, millions of people send money to their families in other countries. We call this cross-border money transfer a remittance. If you work in Europe and help your family in Latin America (or vice versa), this guide explains what remittances are, how they work, how much they cost, and how to make them faster and cheaper in 2025.
What exactly is a remittance?
A remittance is a person-to-person (P2P) payment that crosses borders to support daily expenses: food, education, healthcare, housing, or small family businesses.
It's not a loan or an investment; it's direct help sent by migrants or people living outside their country of origin.
Who's involved in a remittance?
Sender: the person sending the money (e.g., from Spain or Germany).
Sending provider: bank, money exchange, fintech app, or crypto wallet.
Payment rails and networks: the "path" the money travels (SWIFT, local networks, blockchain).
Local payment provider: who delivers the money to the recipient (bank deposit, mobile wallet, or cash).
Recipient: the person receiving in their local currency (e.g., COP, MXN, PEN).
How does the traditional process work?
The sender deposits euros in a bank/money exchange.
The provider applies fees and an exchange rate (with margin).
The money travels through international networks (sometimes several intermediaries).
In the destination country, the payment is converted to local currency and delivered (bank account, wallet, or cash).
Typical problems:
High fees and exchange rate margins
Waiting times (hours or days)
Limited hours (branch offices, weekend cutoffs)
Lack of transparency (you don't know the final cost until the last step)
How much do they cost, and how long do they take?
It depends on the country, provider, and delivery method. Generally:
Fixed fees + percentage of the amount
FX margin (the difference between the "market" exchange rate and what they offer you)
Time: from minutes to several days. Branch payments usually take longer; bank accounts with local/SEPA networks are more agile.
What changed in 2025?
Three trends are transforming remittances:
Total digitization: more people use apps instead of going to branches.
Real-time payments: faster rails and open APIs.
Stablecoins on blockchain (USDC/EURC): transfer value in seconds, with low fees and better transparency.
Stablecoins = digital money with stable price (1 USDC ≈ 1 USD, 1 EURC ≈ 1 EUR), ideal for moving value without volatility.
Traditional remittance vs. stablecoin remittance
Traditional
Multiple fees and opaque FX margin
Dependence on schedules and intermediary banks
Variable times (hours/days)
Limited tracking
With stablecoins (on Solana, for example)
Low and visible cost from the start
Speed: settlement in seconds/minutes
24/7 availability (including weekends/holidays)
Transparency: you can see the transaction on-chain
Important: the recipient doesn't need to know about crypto. They can receive in local currency through a regulated off-ramp.
What does a modern remittance look like step by step?
Load: You send euros from your card/SEPA transfer.
Stablecoin conversion: in the backend it converts to EURC/USDC.
Instant blockchain sending (e.g., Solana).
Local conversion: a partner in the destination country exchanges to local currency.
Delivery: bank deposit, mobile wallet, or cash withdrawal (depending on country options).
The entire process can take minutes, with substantially lower costs than traditional methods.
Security, regulation, and compliance
KYC/AML: serious providers verify identity and monitor operations to prevent fraud and laundering.
Reserves and licenses: by using stablecoins from regulated issuers (e.g., USDC/EURC), there's 1:1 backing and audit reports.
Privacy: personal information is protected; on-chain transactions are public, but your private data isn't exposed on the chain.
Tips for sending remittances in 2025
Compare real costs: fee + FX margin
Check delivery time and recipient experience (do they have an account? Do they prefer wallet or cash?).
Verify support: chat, languages, hours.
Prioritize transparency: see the total that will arrive "in pocket" before confirming.
Use stablecoins if you want speed and lower cost, always with trusted providers.
How does Rampa simplify this?
At Rampa we're building a non-custodial remittance platform on Solana for the Europe → Latin America corridor (initially, Europe → Colombia).
We work with stablecoins (USDC/EURC) so value travels fast and cheap.
We integrate with local partners so your family receives in their currency.
With a simple app, you send in minutes and see from the start how much will arrive.
Our goal: fairer and more transparent remittances that actually put more money in your family's hands.
Frequently Asked Questions
Does my family need to know about crypto? No. They can receive in their local currency through our local partners.
What happens if I send on weekends? With stablecoins and networks like Solana, sends are 24/7. Local delivery depends on the chosen method, but it's usually faster than traditional banking.
Is it safe? Yes, we use KYC/AML, regulated providers, and stablecoins with 1:1 backing. Plus, you can track the transaction on-chain.
What about fees? Lower than traditional methods and visible before sending. The goal is for your family to receive more.
Conclusion
Remittances are a bridge of love and support between families. In 2025, the combination of mobile apps + stablecoins makes that bridge faster, cheaper, and more transparent. If you send money home, it's the perfect time to make the leap to a modern experience.
Next step: Download Rampa and make your first send in minutes. Turn your everyday remittances into engines of shared prosperity.