The cost of sending money from the United Kingdom to South Asia has reached a historic low, with the average fee for a £200 remittance to India falling to 2.7% and to Pakistan dropping to 2.9%, according to the World Bank's latest Remittance Prices Worldwide database. The figures represent a significant decline from 4.1% and 5.3% respectively just three years ago, and bring the UK-South Asia corridor close to the G20's target of reducing global remittance costs to 3% by 2030. Fintech providers including Wise, Remitly, and WorldRemit now account for more than 55% of UK-originated digital remittances to the region.

The cost reductions have been driven by a combination of technology-led competition and regulatory intervention. The FCA's 2023 guidance on remittance pricing transparency required providers to display total costs, including exchange rate margins, at the point of sale, enabling consumers to make more informed comparisons. Meanwhile, fintechs have invested in direct integrations with local payment systems such as India's Unified Payments Interface and Pakistan's Raast, bypassing correspondent banking networks that historically added cost and delay. Remitly CEO Matt Oppenheimer said the UK market had become a global benchmark for competitive remittance pricing.

Despite the progress, significant disparities remain. Remittance costs to sub-Saharan Africa from the UK average 7.8%, more than double the South Asian corridors, with providers citing lower transaction volumes, currency volatility, and fragmented payment infrastructure as contributing factors. The Payments Association has urged the government to include remittance corridor development in future trade agreements, particularly with Commonwealth nations. A Treasury spokesperson confirmed that the issue would be considered as part of the National Payments Vision, which is expected to be published in early 2026.