The profit that outward remittance companies make in the process of sending remittances varies depending on the company and the specific remittance transaction. These companies typically generate revenue by charging fees for the transfer, which may be a percentage of the amount being sent or a flat fee.
In addition to the fees, outward remittance companies may also make a profit through foreign exchange rate margins. This refers to the difference between the exchange rate used by the company to convert the currency and the actual exchange rate at the time of the transaction. The company may offer a less favorable exchange rate than the market rate and profit from the difference.
The profit margins of outward remittance companies are not publicly disclosed, and they may vary depending on factors such as the amount being sent, the destination country, the payment method, and the competition in the market. However, it's worth noting that some companies, particularly online money transfer services, have been able to offer more competitive fees and exchange rates compared to traditional remittance channels such as banks, which has disrupted the remittance industry and increased competition in the market.
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