The high cost of transferring remittances through formal channels often drives migrants to rely on informal methods to send money home. Recognizing the importance of remittances to economies and the need to reduce transaction costs, the United Nations’ 2030 Sustainable Development Goals (Target 10.c) specifically aim to lower remittance costs. Recently, digital remittances have emerged as a viable, cost-effective alternative for these transfers. This research examines the factors influencing variations in digital and non-digital remittance fees in Sub-Saharan Africa (SSA) from 2011 to 2022, using bilateral remittance flow data and transaction costs from 28 receiving countries in SSA and 8 sending countries. Using the system GMM approach, the results reveal a consistent decline in remittance fees, primarily through digital channels. The findings also show that transaction fees significantly determine the formal volume of remittance flows. Thus, digitally, a 1% decrease in the cost of remitting USD 200 leads to approximately a 0.64% increase in remittance inflows in SSA. Furthermore, lower remittance fees are associated with greater market competitiveness, financial and digital growth, and higher literacy rates in SSA. The results highlight the importance of policymakers prioritizing digital remittance channels to achieve SDG Target 10.c: reducing remittance transaction costs.