How Banks & Fintechs Can Win Remittances with APMs

Time Business News

15-07-2025

The global remittance market is booming. In 2024, remittance flows to low- and middle-income countries reached $656 billion, according to the World Bank. That's a massive opportunity. But here's the catch: your customers are no longer satisfied with old-school methods.
They want faster, cheaper, and easier ways to send money. That's exactly where Alternative Payment Methods (APMs) come in. They are literally changing the remittance game.
If you want to win in this fast-evolving market, you need to know how to use APMs to your advantage. And that's what we are going to do in today's blog.
In this blog post, let's explore what APMs are and how they can take your cross-border remittance business to the next level.
Are you excited? Let's spill the beans.
APMs are non-traditional ways of transferring money. They include mobile wallets, QR codes, direct bank transfers, and other digital rails.
Unlike cards and cash-based methods, APMs support faster and more affordable remittance flows. They give your customers the power to send and receive money anywhere, anytime, using methods they trust and use every day.
Most importantly, alternative payment methods aren't just about convenience. They are essential if you want to stay relevant in today's remittance market.
Okay, so now that we have brushed up on APMs, let's touch upon why traditional remittance models are fading away.
The old cross-border remittance methods are no longer enough. Customers now expect speed, transparency, and lower fees. Here's why the traditional model is falling short.
Traditional remittance often goes through multiple banks and intermediaries. And every step adds delays and costs. In many corridors, fees still go beyond 6%, which is way above the UN's 3% target.
Supposedly, if your service is slow and expensive, then customers will look for faster and cheaper alternatives.
Many people still don't have access to formal banking systems. They still have to follow traditional bank-to-bank transfers. And this limits your reach.
On the other hand, mobile-first APMs like M-Pesa allow users without bank accounts to participate. If you stick to the old way, you're missing out on a huge untapped market.
Winning in the remittance space means thinking beyond traditional rails. These strategies can help you stand out and grow faster.
APMs help you go global without needing a physical presence. You can accept and pay out in local methods across countries, mobile wallets in Kenya, and QR in Brazil.
This flexibility lets you offer true cross-border remittance services that match local preferences. Customers love it when they get to choose how they receive money.
One of the main reasons for high cross-border remittance fees is the involvement of intermediaries. However, thanks to APMs. They reduce costs by eliminating intermediaries with the introduction of their direct channel. You can also avoid SWIFT fees and unnecessary currency conversions. That's one way to lower the costs and platform fees for your customers.
Plus, when your operating costs drop, you can offer better rates to your users. That gives you a big edge over competitors. And yes, customers always notice the difference in fees.
Customers expect real-time transfers, not next-day or three-day settlements. And APMs let you offer instant or near-instant delivery through modern rails.
Moreover, APMs like PIX and Faster Payments make real-time remittance a reality. This boosts satisfaction, builds trust, and increases repeat transactions.
Most users in Africa, Asia, and Latin America use mobile money daily. Many don't even have a traditional bank account.
With APMs, you can reach these mobile-first users. Mobile wallets, USSD codes, and agent networks make your service accessible to everyone, not just the banked population.
This further expands your customer base in a way that bank-only systems can't.
Now comes the main part of any digital payment service: loyalty. It's a never-ending process, and the loop goes on and on.
When you have a well-built platform that supports easy APM options, customers will definitely stick to your services.
You should give your customers real-time updates. Plus, show fees upfront. Offer local language support. And make sure your service works on any device.
To win with APMs, you need the right foundation. That means choosing a cross-border remittance platform that supports your goals. So here's what you should look for in a remittance software for seamless APM integration:
Your platform should support mobile wallets, instant bank transfers, QR codes, and region-specific methods from the start.
You shouldn't waste time doing separate integrations. The platform must handle it all under one roof. So, you must choose a provider who offers you easy and flexible integration into the system.
You should choose a platform that connects smoothly with your existing systems. An API-first design helps you go live faster and scale quicker.
On the other hand, interoperability ensures you can serve new corridors without technical headaches.
Regulations vary across borders. A reliable platform helps you manage KYC, AML, and licensing requirements in every market you serve.
This saves you time, avoids penalties, and builds trust with regulators.
Your platform must support real-time transfers using APM rails. So you should look for providers with low-latency processing, instant payouts, and 24/7 uptime.
That's the level of performance your users now expect.
If you're still relying only on traditional remittance rails, you're holding your business back. You're missing out on faster settlements, wider global reach, lower costs, and millions of unbanked or mobile-first users who prefer APMs.
Your customers want speed, flexibility, and transparency, and APMs deliver exactly that. By integrating them into your cross-border remittance platform, you not only meet expectations but exceed them.
The future of remittance is already here; it's digital, interoperable, and APM-powered. Don't stay behind while others move forward. Choose smarter payment rails. Win the remittance market now.
TIME BUSINESS NEWS