Remittance
Money sent from one country to another, typically by a foreign worker sending funds to family back home.
Remittances are a massive global market, over $800 billion per year. Traditional services like Western Union and MoneyGram charge 5-10% in fees plus unfavorable exchange rates. A $500 transfer might cost $25-50 in fees.
USDC is increasingly used as an alternative. Sending USDC costs less than a penny on networks like Base or Solana, and it arrives in minutes instead of days. The recipient can convert to local currency through a local exchange or mobile money service.
The main barrier is adoption. The sender and receiver both need access to a crypto wallet and a way to convert between USDC and their local currency. But in countries with high smartphone penetration and developed crypto ecosystems (like the Philippines, Nigeria, and Mexico), USDC remittances are growing fast.
Related Terms
USDC (USD Coin)
A regulated, fully-backed stablecoin pegged to the U.S. dollar. Each USDC is redeemable for $1.
Gas Fees
Transaction fees paid to blockchain validators for processing and confirming transactions.
Onramp
A service that lets you convert traditional money (fiat) into cryptocurrency.
Offramp
A service that lets you convert cryptocurrency back into traditional money (fiat).
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.