Editing Informal value transfer system (section)

==Adoption==
{{Urs|date=December 2024}}
IVTS are used by a variety of individuals, businesses, organisations, and even governments to remit funds domestically and abroad. Expatriates and immigrants often use IVTS to send money back to their families and friends in their home countries (for workers who worked abroad) or foreign countries (for merchants who need extra money to start a business). IVTS operations are also used by legitimate companies, traders, organisations, and government agencies needing to conduct business in countries with basic or no formal financial systems.

In some countries, IVTS-type networks operate in parallel with formal financial institutions or as a substitute or alternative for them or. Besides citizens of the host country, people (legally or illegally) residing in the host country from foreign countries may prefer or need to use IVTS in lieu of formal financial institutions for various reasons as described below:
* the host country and the receiving country have no diplomatic ties or the host country actively discourage the sending of money to the receiving country.
* the constant change in the world political environments, unsatisfiable payment systems, and/or a rapid continuously changing financial sector;
* a lack of easily accessible formal financial institutions in remote areas of some countries;
* transfers that are more efficient, reliable, and cheaper than formal financial institutions. (For example, a [[electronic funds transfer|wire transfer of funds]] using banks involves fees charged to the sender and receiver, may take from two to seven days to complete, and may be delayed or lost. Funds moved through IVTS are usually available within 24 hours, with minimal or no fees charged to the participants);
* to avoid paying higher foreign [[exchange rate]]s. (Funds sent through traditional transfers are converted to the currency of the recipient’s country; the fee charged for exchange rate conversion is set by the institution. IVTS operators, who speculate in currency exchange rates, charge lower fees);
* to avoid paying transfer taxes;
* to ensure anonymity since there may be minimal or no records maintained; or
* to avoid mandatory reporting of large transactions from financial institutions to governments.

Because IVTS provides security, anonymity, and versatility to the user, the systems can be also used for supplying resources for doing illegal activities.  Following the [[September 11, 2001 attacks]] on the United States, IVTS have come under increased scrutiny and regulation in many countries as a result of pressure from the United States.