Migrants' Choice of Remittance Channel: Do General Payment Habits Play a Role?
AbstractThis paper investigates the determinants in migrants’ choice of payment channel when transferring money to relatives abroad. We surveyed 1,680 migrants in the Netherlands, identifying five remittance channels: bank services, money transfer operator (MTO) services, in-cash transfers via informal intermediaries, ATM cash withdrawals abroad and carrying cash when travelling back home. To the best of our knowledge, we are the first to present evidence of the role played by general payment habits: migrants who regularly use internet banking for other purposes are more likely to use bank services for remittances as well. However, we also demonstrate that other important drivers exist in determining the choice of payment channels, such as personal characteristics and country-specific factors, (perceived) costs, ease of use and the availability of remittance options. Based on our findings, we suggest that financial education, cost reduction and new (mobile) remittance solutions may serve a valuable role.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 375.
Date of creation: Mar 2013
Date of revision:
Remittances; payment instruments; qualitative choice models;
Find related papers by JEL classification:
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michel Beine & Elisabetta Lodigiani & Robert Vermeulen, 2010.
"Remittances and Financial Openness,"
CESifo Working Paper Series
3090, CESifo Group Munich.
- Michel Beine & Elisabetta Lodigiani & Robert Vermeulen, 2011. "Remittances and Financial Openness," DNB Working Papers 317, Netherlands Central Bank, Research Department.
- Michel Beine & Elisabetta Lodigiani & Robert Vermeulen, 2009. "Remittances and Financial Openness," CREA Discussion Paper Series 09-09, Center for Research in Economic Analysis, University of Luxembourg.
- Michel Beine & Elisabetta Lodigiani & Robert Vermuelen, 2010. "Remittances and Financial Openness," Development Working Papers 299, Centro Studi Luca d\'Agliano, University of Milano.
- Russell, Sharon Stanton, 1986. "Remittances from international migration: A review in perspective," World Development, Elsevier, vol. 14(6), pages 677-696, June.
- Simeon Karafolas & George Konteos, 2010. "Choice of Money Transfer Methods in the Case of Albanian Immigrants in Greece," Transition Studies Review, Springer, vol. 16(4), pages 962-978, February.
- Demirgüç-Kunt, Asli & Córdova, Ernesto López & Pería, María Soledad Martínez & Woodruff, Christopher, 2011.
"Remittances and banking sector breadth and depth: Evidence from Mexico,"
Journal of Development Economics,
Elsevier, vol. 95(2), pages 229-241, July.
- Demirguc-Kunt, Asli & Lopez Cordova, Ernesto & Martinez Peria, Maria Soledad & Woodruff, Christopher, 2009. "Remittances and banking sector breadth and depth : evidence from Mexico," Policy Research Working Paper Series 4983, The World Bank.
- Freund, Caroline & Spatafora, Nikola, 2008. "Remittances, transaction costs, and informality," Journal of Development Economics, Elsevier, vol. 86(2), pages 356-366, June.
- Acosta, Pablo A. & Lartey, Emmanuel K.K. & Mandelman, Federico S., 2009.
"Remittances and the Dutch disease,"
Journal of International Economics,
Elsevier, vol. 79(1), pages 102-116, September.
- Anneke Kosse & David-Jan Jansen, 2011. "Choosing how to pay: the influence of home country habits," DNB Working Papers 328, Netherlands Central Bank, Research Department.
- Bollard, Albert & McKenzie, David & Morten, Melanie & Rapoport, Hillel, 2009.
"Remittances and the brain drain revisited : the microdata show that more educated migrants remit more,"
Policy Research Working Paper Series
5113, The World Bank.
- Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2011. "Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More," World Bank Economic Review, World Bank Group, vol. 25(1), pages 132-156, May.
- Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2009. "Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More," Working Papers 2009-26, Department of Economics, Bar-Ilan University.
- Bollard, Albert & McKenzie, David & Morten, Melanie & Rapoport, Hillel, 2009. "Remittances and the Brain Drain Revisited: The Microdata Show That More Educated Migrants Remit More," IZA Discussion Papers 4534, Institute for the Study of Labor (IZA).
- Albert Bollard & David McKenzie & Melanie Morten & Hillel Rapoport, 2009. "Remittances and the Brain Drain Revisited: The microdata show that more educated migrants remit more," CReAM Discussion Paper Series 0926, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Thorsten Beck & Asli Demirgüç-Kunt & Patrick Honohan, 2009. "Access to Financial Services: Measurement, Impact, and Policies," World Bank Research Observer, World Bank Group, vol. 24(1), pages 119-145, February.
- Simeon Karafolas & Nikolaos Sariannidis, 2009. "The Banking Network as a Transmission Channel of Migrant Remittances: The Case of Greek and Italian Banks in Albania," Transition Studies Review, Springer, vol. 15(4), pages 674-684, February.
- Elbadawi, Ibrahim & de Rezende Rocha, Robert, 1992. "Determinants of expatriate workers'remittances in North Africa and Europe," Policy Research Working Paper Series 1038, The World Bank.
- Rapoport, Hillel & Docquier, Frederic, 2006.
"The Economics of Migrants' Remittances,"
Handbook on the Economics of Giving, Reciprocity and Altruism,
- Nicole Jonker & Anneke Kosse, 2013. "Estimating Cash Usage: The Impact of Survey Design on Research Outcomes," De Economist, Springer, vol. 161(1), pages 19-44, March.
- Devesh KAPUR, 2004. "Remittances: The New Development Mantra?," G-24 Discussion Papers 29, United Nations Conference on Trade and Development.
- Jørgen Carling, 2008. "The determinants of migrant remittances," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 582-599, Autumn.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rob Vet).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.