A remittance is a transfer of money by a foreign worker to an individual in his or her home country. Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries.
Sending money to South Africa costs a lot, as anyone doing a transfer at Western Union or Moneygram can attest. Money transfer companies pay a lot for compliance. In the US for instance, they have to get a licence for each of the 50 states they operate in. The process of sending money through these companies is also painful, with many manual operations and long queues for customers on week-ends.
Sending money home to South Africa from the UK or any other country, is quick and easy using bitcoin. If you setup a payfast.co.za account here in South Africa, which is free, you can accept bitcoins and have them instantly converted to South African Rand, and then deposited into your bank account at a cost of only 1.9%. Sending money via bitcoin to South Africa will take at most about an hour for 4 confirmations on the bitcoin network.
Payfast are quick to process the funds, and deposit the Rand into your bank account. You dont have to bother about visiting a bank during office hours, waiting for days for money to clear, or some of the high costs that you will get charged for accepting foreign currency and converting it to Rand.
The micro-remittance market ($20 and less) has been poorly addressed by the giants of the industry and is an area where bitcoin transactions are surging ahead. Now it is easy for friends and family or even customers to send small amounts of money to South Africa at a low cost.
Another option is to trade the bitcoin you send back to South Africa on the bitcoin market.
You could send money back using bitcoin, and then sell it on one of the bitcoin exchanges locally, and then withdraw the Rand to your bank account. This can be easily done on both Ice3x.com and Bitx.co.za websites. You are also able to trade your bitcoin using localbitcoins.com to find buyers or sellers near you.
Need to buy some bitcoin?
Now you can buy bitcoins directly from other bitcoin users on Localbitcoins.com or using your PayPal / credit card on VirWox.com!
For step by step instructions on how to use VirWox to buy bitcoin, check out this post: http://www.bitcoinzar.co.za/how-to-buy-bitcoin-with-your-paypal-account/