I wondered if there's been much EA work on facilitating remittances, other than Wave?
Remittances are higher than aid and foreign direct investment, Â and increase rather than decrease during economic downturns.Â
It seems like there are actionable methods to facilitate more remittances.
In low income countries: prioritising electrification, mobile networks and internet connectivity.
In high income countries: using regulatory levers and / or subsidies to promote competition between mobile money and fintech companies.
These methods don't seem very amenable to EA's usual randomista approach to development (eg - I can't find work by J-PAL evaluating whether expanding mobile phone access improves remittance flows).
I'm aware that GiveDirectly sometimes buys people phones to enable cash transfers - I wonder whether the effects of this on remittance flows has been studied?
The GiveDirectly founders (Michael Faye and Paul Niehaus) also founded TapTapSend (https://techcrunch.com/2021/12/20/taptap-send-raises-65m-to-build-cross-border-remittances-focused-on-the-most-underserved-markets/) which competes with Sendwave to keep remittance prices down.
Do you (/anyone reading this) know if TapTapSend is for-profit (/whether they're just using their current profits to scale but have hopes of slashing fees once they do so)?Â
I know very little about the business model of remittance companies, but from two seconds' worth of thought, this seems like an area where a nonprofit could try to undercut the market and provide a massive public good.