Everything You Need to Know About Remittances

For many migrants in the United States, sending money back home, also known as remittances, is an important part of life. Whether supporting family members, paying bills, or saving for the future, remittances are a financial lifeline to loved ones in other countries.

Remittances are also a major global flow of money. In 2024, remittances to the Philippines reached a record $38.34 billion, driven by overseas workers around the world.

Here’s a simple guide to help you understand how remittances work, what to consider and how to make the most of your money.

What are remittances?

A remittance is money sent by someone living abroad to family or friends in another country. Migrants often send remittances regularly to help with daily expenses, education, health care, housing and more.

In 2025, cash remittances to the Philippines continued to grow. In October, remittances from overseas Filipinos totaled $3.17 billion, with the United States remaining the top source of funds.

How remittance costs work

When you send money abroad, you usually pay:

1. Transfer fees

These are the upfront costs charged by the remittance service. Some services offer promotions or initial fee transfers, but typical fees can range from a few dollars to more, depending on the method and speed of delivery.

2. Exchange rates

The exchange rate determines how much local currency your recipient receives. Some companies advertise low or no fees but make money by applying a less favorable exchange rate. It’s important to compare both the fee and the exchange rate when choosing a service.

Tips to save on remittances

Compare fees and rates

Look at both the fee and the exchange rate. A low fee doesn’t always mean a good deal if the exchange rate is weak.

Plan your transfer timing

Exchange rates change daily. Sending money when the rate is stronger for your currency can increase the amount your family receives.

Choose a reliable remittance partner

Using a dependable service with transparent fees and support can reduce stress. Smiles Mobile Remittance offers clear exchange rates, low fees and support in multiple languages to help migrants manage remittances with confidence.

Why remittances matter

Remittances are more than money sent across borders. For many households, they help pay for food, education and urgent needs. Data from 2025 shows that remittances remain a key part of the economy for countries like the Philippines, where overseas workers support families back home.

Sending money regularly, and in a way that maximizes value, helps ensure that your hard earned income can go further.

How Smiles can help you

Smiles Mobile Remittance is the absolute no. 1 mobile remittance app in Japan, coming soon to the United States. It can make sending money from the U.S. simple and affordable. With competitive exchange rates, low fees and easy access through your phone, Smiles will give you control over when and how you send money. You can check live exchange rates anytime before you send to decide the best time to transfer funds. Smiles also supports users in their native language, reducing the stress of complex financial transactions.