People are sending more money abroad, but the cost to do so isstill more than double what it should be, according to a new reportfrom the World Bank.

The international financial institution reported this week thatamount of money people sent to low- and middle-income countriesrose by 8.5% to $466 billion in 2017, setting a new record.Remittances (regular, small money transfers) to those countries areexpected to grow by 4.1% in 2018, hitting $485 billion.

Global remittances, which include money sent tohigh-income countries, jumped 7% to $613 billion in 2017, up from$573 billion in 2016. The World Bank said it expects them to growanother 4.6% to $642 billion in 2018.

The figures reflect only officially recorded data — the realremittance market is much larger, it noted.

“The stronger than expected recovery in remittances is driven bygrowth in Europe, the Russian Federation and the United States,”the World Bank added. “The rebound in remittances, when valued inU.S. dollars, was helped by higher oil prices and a strengtheningof the euro and ruble.”

However, the global average cost of sending $200 was 7.1% in thefirst quarter of 2018, which the World Bank said was well above the3% it hopes to attain by 2030.

“Major barriers to reducing remittance costs are de-risking bybanks and exclusive partnerships between national post officesystems and money transfer operators,” it reported. “These factorsconstrain the introduction of more efficient technologies—such asinternet and smartphone apps and the use of cryptocurrency andblockchain — in remittance services.”

In 2017, the top remittance receiving countries — in dollarterms— were India ($69 billion), China ($64 billion), thePhilippines ($33 billion), Mexico ($31 billion), Nigeria ($22billion) and Egypt ($20 billion).

Shifting immigration policies around the world could slow downthe flow of funds, the World Bank noted.

“Remittance flows are vulnerable to downside risks fromspreading anti-migration sentiments and restrictive migrationpolicies in most of the remittance-source countries in NorthAmerica, Europe, Russia, and the [Gulf Cooperation Council]. TheUnited States, for example, has announced a termination of theTemporary Protected Status (TPS) for migrants from El Salvador,Haiti, and Nicaragua, which over time would reduce remittance flowsfrom the United States to these countries,” The World Bank said.“Some countries (for example, Kuwait) are considering a tax onoutbound remittances, which could not only dampen remittance flows,but also encourage flows through informal channels.”

Financial institutions, countries and development agencies needto keep cutting remittance costs, Global Knowledge Partnership onMigration and Development head and lead report author Dilip Rathasaid.

“Eliminating exclusivity contracts to improve market competitionand introducing more efficient technology are high-priorityissues,” Ratha said.