Remittances are a crucial income source in Asia and the Pacific, particularly several countries in Central Asia, but high transaction costs limit their impact. While SDG 10c aims to reduce these costs globally, understanding the factors behind them is essential for effective policy. This paper examines different remittance corridors: lower-cost transfers originating from the Russian Federation to Central Asian countries and Malaysia to Indonesia, as well as higher-cost ones originating from Thailand to neighbouring countries and Australia to Pacific island countries. Four key factors influencing costs are analyzed: cost architecture, market dynamics, digitalization, and user behavior. Findings show that lower costs in the Russian Federation result from a common currency, while Malaysia’s competitive market reduces fees. In contrast, Thailand’s high costs are driven by transfer fees and regulatory barriers, and Australia’s by weak banking relationships with banks in Pacific island countries and a limited number of providers. These insights highlight the need for targeted policies. While digitalization can lower costs, it is not a universal solution, as cash-based remittances remain competitive in some cases. Enhancing market competition, improving regulatory transparency, and addressing infrastructure barriers are essential for reducing costs and supporting financial inclusion. The paper specifically focuses on good practice examples from Central Asian countries and the lessons learned for other countries in the region.