Why sending money to the Pacific is still expensive - and what’s changing

Sending money across borders has become easier over the past decade, but for many people in Australia and the Pacific, it still comes at a cost.

Despite global improvements in payment technology, cross-border payments remain more expensive, slower, and less transparent than domestic transfers.

For a deeper look at how Australia is improving cross-border payments, the Reserve Bank of Australia has published useful insights:
https://www.rba.gov.au/publications/bulletin/2026/feb/on-the-road-to-better-cross-border-payments-how-is-australia-travelling.html

This is especially true for remittance corridors between Australia and Pacific Island countries, where costs remain significantly higher than global averages. In some cases, sending money from Australia to the Pacific can cost well above international targets.

A detailed breakdown of these challenges can be found here:
https://www.globalvoices.org.au/post/addressing-persistently-high-transaction-costs-in-remittance-corridors-between-australia-and-pacific

Why are costs still high?

There are several reasons why these transfers remain expensive:

Limited competition
Many Pacific markets are small, which reduces the number of providers operating in those corridors.

Complex payment infrastructure
Cross-border transfers often move through multiple banks and systems before reaching the recipient.

Compliance and regulatory requirements
Strict identity verification and monitoring processes are essential, but they add cost and time.

Currency and liquidity challenges
Smaller economies often face constraints in accessing foreign currencies efficiently.

Why it matters

For many Pacific communities, remittances are more than just payments — they are a financial lifeline.

Money sent home supports:

• everyday living expenses
• education and healthcare
• small businesses and local economies

In some Pacific nations, remittances account for a significant portion of national income and economic activity.

What’s changing

Governments, regulators, and financial institutions are actively working to improve cross-border payments.

Global initiatives aim to make transfers:

• faster
• cheaper
• more transparent

The Reserve Bank of Australia highlights ongoing improvements in infrastructure and payment systems.

At the same time, new digital platforms are emerging to reduce friction and improve access to financial services across the region.

Looking ahead

While progress has been made, there is still work to be done.

Reducing costs, improving access, and increasing transparency will continue to be key priorities for the payments industry.

This content is for general information only and does not constitute financial advice. It does not consider your personal circumstances.