One in three remittance users struggle with delays

Thunes and Juniper Research have published data showing that one in three remittance recipients struggles to pay for essentials because of delays and costs in cross-border payment systems. The findings are based on a survey of more than 6,500 people across 10 markets.

The research found that 33% of recipients who depend on remittances had difficulty paying for food, rent, or utilities when international transfers were delayed or reduced by fees. It also found that 82% had experienced at least one problem linked to delays, charges, or uncertainty over incoming funds.

Those problems ranged from missed household bills to stress and lost work. The data showed that 42% of users reported stress or anxiety caused by a lack of speed and transparency in cross-border transactions, while 33% said they had borrowed money in the short term to cover expenses.

Another 23% said payment issues had strained personal relationships. The study argued that the gap between fast domestic payment systems and slower cross-border networks is creating direct financial pressure for households that rely on money sent from abroad.

Hidden costs

Senders also reported transparency problems. The data showed that 41% received unexpected final amounts. Among users aged 18 to 24, 49% said there was no clear upfront view of the total cost.

That lack of clarity adds to what the study described as a "friction tax" on people using international money transfers. The term refers to the combined effect of delays, opaque fees, and disconnected systems that leave recipients unsure when money will arrive or how much they will receive.

The survey covered respondents in the United States, Brazil, Saudi Arabia, China, India, the Philippines, the UK, Germany, South Africa, and Nigeria. Juniper Research said 6,763 responses met its screening and quality criteria for inclusion in the analysis.

The report also included an interoperability index designed to measure how easily payments can move across borders. It assessed markets across five core dimensions and drew on external indicators, including World Bank financial inclusion and remittance cost datasets.

Industry concern

For payment providers and policymakers, the figures add to broader pressure to reduce the cost and uncertainty of international transfers. Domestic payment systems in many countries have moved toward near-instant settlement, but links between national networks remain patchy and often depend on multiple intermediaries.

That structure can increase costs and extend processing times, especially for lower-value transfers. For recipients who rely on regular remittances to meet daily expenses, even small deductions or short delays can disrupt household budgets.

Chloe Mayenobe, Deputy Chief Executive Officer at Thunes, said the findings showed the burden falls most heavily on people with the least room to absorb it. "This data exposes a brutal truth: the cross-border' friction tax' is a parasite on the global economy, and the cost is being paid by those who can least afford it.

"While domestic payments have become instant, our global systems remain stubbornly disconnected. Interoperability is a fundamental requirement for financial equity.

"As we collectively work towards the G20's remittance cost goals, the industry must prioritise ending this fragmentation deadlock," Mayenobe said.

Nick Maynard, Vice President of Research at Juniper Research, said the issue now extends beyond technical infrastructure. "What this research makes clear is that payment fragmentation is no longer simply an infrastructure challenge; it is a social and economic issue with real human consequences.

"While domestic payment networks have evolved to deliver speed and convenience, cross-border transactions remain constrained by disconnected systems that create unnecessary costs, delays, and uncertainty.

"For millions of people who rely on remittances to support everyday living expenses, these inefficiencies act as a hidden 'friction tax'.

"The industry has made significant progress in modernising payments, but achieving true interoperability across borders is now one of the most important priorities for delivering a more inclusive global financial system," Maynard said.

Remittances are a significant source of household income in many economies, particularly where workers send money home from abroad to support family members. The survey findings suggest that problems in payment infrastructure can quickly affect food security, housing stability, and access to utilities.

The age split in the transparency data also points to broader trust issues in consumer payment services. Younger users, who are often more familiar with instant domestic transfers and app-based finance, appear especially likely to react negatively when international payments arrive with unclear fees or unexplained deductions.

By highlighting both financial and personal effects, the data puts fresh focus on the cost of fragmentation in cross-border payments. Among vulnerable users who depend on remittances, 33% struggled to pay for essentials, 33% borrowed money in the short term to cover expenses, and 23% experienced strained relationships because of payment issues.