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Index/Topics/Formal vs Informal Remittance Channels

Formal vs Informal Remittance Channels

Comparison of formal and informal remittance channels, including their characteristics, advantages, and disadvantages.

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Jan 19, 2026

How do formal remittance channels and informal cash couriers differ, and why do people use both for sending money abroad?

Formal remittance channels—banks, licensed money transfer operators (MTOs), postal services and regulated mobile wallets—operate inside the banking and regulatory system and offer documented, trackabl...

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