COVID-19 Has Changed How Migrants Utilise Remittance Funds Back Home


The pandemic has spurred digital innovation across the money transfer services sector like fire. It has changed the world forever by accelerating digital adoption. 

No one could have imagined that the traditional remittance model one day would face a severe challenge from a new and more innovative model that is more inclusive and provides greater transparency to migrant communities. 

For millions of migrants worldwide, sending funds back home to a family member or a friend is a normal part of life. For the recipients of those transactions, the funds act as a lifeline for meeting everyday expenses and investing for the future. 

Due to the pandemic, the situation faced by millions of people, especially the migrant worker community worldwide, has also been the single most significant reason for the growth of digital remittances ever.

End-to-end digitization had long been recognized as the solution to drive down costs and drive up the scale, but the shift to Digital had still been slow – until COVID-19 hit.

Impact of COVID-19 

The effect of COVID-19 on migrants and the international remittances market has been dramatic. A strict lockdown, travel bans, and social distancing have brought global economic activities to a halt.

Host countries faced additional challenges in many sectors, such as health and agriculture, that mainly depend upon the availability of migrant workers. Migrants, on the other hand, faced the risk of contagion and the loss of employment, wages, and health insurance coverage. 

Immigrants worldwide have been significantly affected in the following ways:


There was an increase in the unemployment levels of migrant workers. Ones that solely relied on jobs were now at a questionable state in the country.

Reduced wages

As the COVID pandemic took over the world, businesses began to incur severe losses that took a direct toll on daily wage earners. While many lost their jobs, those employed faced huge chunks of salary deductions. 

Disruption in the Traditional Remittance Model

Even after substantial wage deductions, many migrants managed to save money to send back home. However, due to strict lockdown and travel restrictions, they could no longer depend on friends and family to manage their remittances. As a result, remittance flows to low- and middle-income countries declined by 20% year-over-year as projected by World Bank.

Restricted Air Travel

Migrants work hard for months to save enough money to visit their loved ones at the end of the year. This usually would be an excellent opportunity for them to take money back home for themselves and on behalf of their friends. Unfortunately, with COVID, it was no longer an option. 

How have consumers pivoted their remittances activity during COVID-19? 

Declared as a global pandemic, COVID-19 had a direct impact on the traditional remittance model and it led to a complete and strict ravel ban. When everything else seemed hopeless, the digital remittance model was a savior for the migrants and their families back home. FinTech companies that spent years building awareness regarding digital transfers now experienced rapid growth.

For months, due to strict lockdown worldwide, foreign travel had been almost impossible, which meant migrant families could not visit their loved ones back home. Sending money through friends and family was also not an option anymore.

What’s more, the pandemic had amplified the pressure that migrants faced in keeping a balance between financing themselves and supporting their families back home. 

For these families, digital native money transfer operators played a crucial role in redefining remittance and money transfer for a post-COVID world.

Payments are now Digital.

Payments back to home countries are finally going digital. Due to travel restrictions and a strict lockdown in countries worldwide, migrants are now sending money digitally to native lands.

Migrants are choosing different mediums like FinTech companies because of the following reasons:

  • Less dependence on banks 
  • Better exchange rates
  • Little to no fees
  • Instant Transactions
  • Multiple payment methods

Traditional Money Transfer Channel Disrupted

Traditional and informal ways of sending money back home were deeply disturbed due to covid related international travel restrictions.

Social distancing, of course, meant that the traditional ways that money changes hands would likely no longer be hand to hand. The uptake of P2P payments and digital wallets will continue, even if the volume declines, at least temporarily. Nevertheless, as recent earnings reports attest, the digital age is becoming firmly entrenched.

FinTech companies operate faster, cheaper, and more transparent than cash-based or agent-led solutions. They are also less sensitive to lockdowns. This pandemic made people realize this, and that was the winning moment for these companies. 

One such company is InstaKin, which guarantees migrants with already operational, verified, and trusted vendors through a quick, accurate, and compliant financial platform. 

According to CENFRI, 71% of migrants want to switch to a new platform like InstaKin that provides them greater access to hire and make direct payments to vendors in their native countries.

Worker Migration Abroad

One shining star for developing countries like Pakistan during this pandemic has been migrant remittances. 

According to Dawn, remittances from Pakistani workers employed abroad exceeded $2 billion for the eighth straight month in January at $2.3 billion, up 19 percent from a year earlier. 

How InstaKin is Helping Migrants Worldwide

Migrant communities are now moving away from traditional remittances towards a new model – InstaKinwhere they can make direct payments to business vendors residing in their home countries. This is also commonly known as purpose-driven remittances or task-based remittances.

Named as one of the most innovative FinTech companies in the USA, InstaKin is standardizing this industry and has completely changed the way migrants interact with their families back home.

Our Customer App

Safe, instant, and convenient – InstaKin’s App is designed for both Android and iOS users. Our algorithm matches customers’ requests with the most relevant vendors based on availability, location, service, type, ratings, and service levels.

Key features to securely provide immigrants with access back home:

  • Secure Transactions
  • InstaPay for payment security
  • Multi-Payment Options
  • Digital Wallet
  • Community Chat & Message Boards
  • Vendor Collaboration

InstaKin’s App is easy to use with powerful features and secure payments, as it offers migrants a one-stop solution to all their tasks dealing with problems back home. InstaKin’s App has the edge over its competitors in the following:


One-stop solution for all the immigrants, InstaKin makes getting tasks done back home a whole lot easier. With Instakin, your tasks are just a click away.


Thanks to InstaKin, you know precisely where and when you spent your money. You have complete control and visibility.


We are big on loyalty programs. With InstaKin, spend more, save more.

Access to Vendors

You can now spend your hard-earned funds on your choice of services directly via InstaKin’s App. From Legal Documentation to Special Requests, we have got you covered!

We Offer You the INSTAKIN Guarantee

With InstaKin around, you do not have to rely on unverified and questionable vendors in your home country. We guarantee to provide you with already operational, verified, and trusted vendors through a quick, accurate, and compliant financial platform. Taking care of all your needs back home while you sit back, relax, and focus on your everyday life is our motto.

What Matters to Us

At InstaKin – We believe in empowering Migrant Communities. You can count on InstaKin’s platform to manage all your tasks back home. 

Post a request or become our partner today.