Remittances, the money that immigrants send to relatives abroad, have multiple positive effects on receiving communities. Unfortunately, large volumes of these remittances are lost to thieves and expensive transfer fees. Because of their safety, electronic money transfer services are increasingly being consumed by immigrants to send remittances. Persistent problems arising from the combination of MoneyGram and Western Union dominating this industry in which customers are easily exploited, leads to my recommendations of reforms designed to spur competition and reduce consumer abuse in this critical market.
