Remittance means sending money from one person or organization to another, often over a distance, usually as payment or financial support. It is most commonly used for international money transfers, such as when someone working abroad sends part of their earnings back home to family.

Core meaning

  • In simple terms, remittance is a transfer of money from one party to another, often to a different city or country.
  • It usually refers to money sent to pay a bill, settle a debt, or support someone financially (like family back home).

Everyday examples

  • A worker in another country sending part of their salary back home every month to help parents with living expenses.
  • A business paying an overseas supplier for goods or services; that payment can be called a remittance in a business context.
  • Paying an invoice or bill where the money is transmitted to a distant place (by bank transfer, online app, or cheque).

Extra terms you might see

  • Remit : the verb, meaning “to send (money) to a person or place,” often to pay what is owed.
  • Remittance advice : a note or document sent to the person or company being paid, letting them know that payment has been made and what it’s for.

Why it matters today

  • Remittances are a huge part of the global economy, especially for families in developing countries that rely on money sent home from relatives working abroad.
  • Governments, banks, and fintech apps track and support remittance flows because they affect household income, poverty rates, and even national economic stability.

TL;DR: When you see “remittance,” think “money sent—often over a distance—to pay someone or support someone.”