Here’s everything you need to know about remittance — from what remittance is to the types of remittance available and different methods.
If you’ve ever sent money abroad or received funds from someone overseas, you’ve probably come across the term ‘Remittance’. But what exactly does that mean? Let’s break it down in a way that’s easy to understand, and even easier to remember.
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What does Remittance mean?
At its core, remittance means transferring money from one person to another, typically overseas. Think of it as sending financial support to your loved ones or making a payment to someone in another country. The word remit itself means to send or transfer. So it’s all about moving money from Point A to Point B — whether you’re helping out family or friends, paying bills, handling business expenses, or personal savings.
Types of Remittance
There are two main types of remittance you should know about:
1. Inward Remittance
This happens when you receive money from someone overseas. For example, if your family member living in Malaysia sends you money back home in Singapore, that’s inward remittance.
2. Outward Remittance
This is when you’re the one sending money abroad. Let’s say you’re in Singapore and need to send funds to your family member living in Australia — that’s outward remittance.
Why is Remittance important?
Remittance is important as it helps families cover expenses, pay for education, or manage emergencies. On a bigger scale, remittance contributes significantly to the economies of many countries, especially those with large migrant populations that are working abroad. The money sent home often boosts development and provides financial stability.
How to send Remittance
There are several ways to send or receive remittance, depending on what’s most convenient for you. Here are some popular options to consider:
1. Wire Transfers
Wire transfers are a reliable method for international remittances. They’re processed through banks or financial institutions and typically take 3-5 business days. However, fees can add up, so it’s good to compare costs before choosing this option.
2. Bank Transfers
Most banks offer remittance services for sending money to other bank accounts locally or internationally. These transfers are secure and straightforward, but they may come with service charges and foreign exchange fees.
3. Money Transfer apps
With a rise in digital technology, apps like YouTrip, Wise, and PayPal make it super easy to send money overseas. They’re often faster than traditional bank transfers and may have lower fees. Plus, you can track your transfer in real time.
Things to consider for Remittance:
When sending or receiving remittance, here are a few points to consider:
1️⃣ Remittance Transaction Limits
Generally, the daily transfer limit for sending money overseas is S$20,000. However, this may vary across different remittance service providers. Likewise, transaction limits can vary based on currency as well.
For example, your daily limit for transferring MYR may be S$20,000, but the maximum amount you can send per transaction is 500,000 MYR.
2️⃣ Remittance Fees & Charges
Always be careful to check for processing fees, foreign exchange fees, and other hidden costs.
3️⃣ Remittance Exchange Rates
Take note of the exchange rate offered if you’re looking to save more on your remittance transfers. If you’re looking for real-time currency exchange rates that are close to the published rates you see on Google, XE.com, and other financial sites, you might want to explore providers that utilise Wholesale Exchange Rates.
4️⃣ Remittance Documentation
You might need to provide proof of ID, such as a passport or government-issued ID, especially for larger transfers.
5️⃣ Remittance Transfer Speed
Some remittance providers offer same-day or instant transfers depending on the currency you’re sending, while others may take a few days.
Do note that some providers may have cut-off timings. This means if you’re sending money after these cut-off timings, your recipient will not receive the funds on the same day.
Looking for a remittance service for sending money overseas?

Consider YouTrip! Send money overseas to 40+ countries with the best rates all day and no hidden fees with YouTrip. Experience same-day or even instant transfers for popular currencies with Duitnow, Gcash and UPI — with no cut-off timings anytime, any day.
Here’s a six-step guide on how to send money overseas with YouTrip:
1️⃣ Sign up for YouTrip
👉.Don’t have an account yet? Sign up now and use the promo code <YTBLOG5> for free S$5!
2️⃣Top up your YouTrip wallet with a Linked Bank Account (eGIRO) or PayNow to ensure your SGD wallet has sufficient funds
3️⃣ Click ‘Transfer’ > ‘Transfers Overseas’ > Select the desired currency you wish to transfer
4️⃣Enter the amount you want to transfer in SGD > ‘Set Up Transfer’ > ‘+ Add Recipient
5️⃣ Choose your preferred transfer method:
- Bank Account
- DuitNow
- Gcash
- UPI
6️⃣ Hit send and voilà! Your recipient will receive the money in their local currency, hassle-free!
Ready to get started? Sign up today with <YTBLOG5> and experience a smarter way to transfer money overseas!

