Digital Remittance Market Insights:
Digital Remittance Market was worth USD 16.99 Billion in 2021, and the market is anticipated to register a growth of USD 57.47 Billion by 2030 at a CAGR of 14.5% during the forecast period (2022-2030).
Digital remittance is referred to all the cross-border money transfers that are carried out with the help of the internet. This may include fund transfers between residents and non-residents, along with the transfer of wages from short-term workers in other countries in order to support their families. The increasing adoption of banking and financial services, coupled with the growing number of digitization operations, is boosting the market. Digital remittance operators are challenging cash-in-hand suppliers because of their ease of use and low costs of usage. Furthermore, these operators have a great deal of digital network that offers user-friendly mobile applications and reduces the time-consuming long form-filling processes. The demand for digital remittances will increase as service providers expand their networks thus, proving access to people to their banking and financial services. Moreover, customers are rapidly adopting digital remittance services because of faster money transfers and fewer remittance prices.
Global top 3 financial service and communication companies including Western Union Holdings, Inc.; Continental Exchange Solutions, Inc.; and MoneyGram hold a share of over 40%. Furthermore, North America is the largest market, with a share of about 33%, followed by Asia Pacific and Europe with a share of about 32% and 15%. North American region has the largest number of immigrants thus, increasing the demand for digital remittance services.
Market Dynamics:
Driver:
- Increasing digitalization & its adoption are the key drivers of the digital remittance market. The increase in the use of smartphones across the world in the upcoming years has enhanced the adoption of digital technology in remittance services and cross-border payments.
- Growing incomes and increasing urbanization are driving the need for digital remittance services. Furthermore, in recent years, digital money transfer services are observing improved adoption from customers in low- and medium-income economies.
- The rising immigrant population specifically in North America due to better education and job opportunities is further responsible to increase the market growth.
- Digital remittance services provide high privacy and security regarding customers’ money.
Restraint:
- The lack of awareness about digital remittance services is expected to obstruct market growth.
- The major security hindrances involving money laundering and terrorist financing hamper the market growth.
COVID-19 Impact:
The COVID-19 outbreak was significantly beneficial to businesses. The COVID-19 epidemic encouraged people to reconsider how they worked, lived, and interacted. As a result of global movement restraints, the global digital remittance market is expected to develop significantly during the forecast period. Customers are now reliable to digital wallets after lockdown for cross-border payments as they are the most efficient, quick, and simple option to transmit money.
Digital Remittance Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | 57.47 Billion |
| CAGR (2022-2030) | 14.5 % |
| By Type | Inward digital remittance, Outward digital remittance |
| By Channel | Banks, Money Transfer Operators, and others. |
| By End User | Personal, Small Businesses |
| By Geography | North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa |
| Key Players | InstaReM, Flywire, Western Union (WU), Ria Financial Outward Remittance, SingX Pte Ltd., WorldRemit Ltd., Azimo Limited, TransferWise Ltd., Ripple, and MoneyGram. |
Market Segmentation:
By Type:
Depending on the type, the market is branched into inward digital remittance and outward digital remittance. In 2021, the outward digital remittance segment contributed the largest share over 55.0% revenue of the market globally. As people living in other countries are sending money home to support their families with the help of financial institutions and banks. These organizations help people in sending money home rapidly and securely. Furthermore, financial institutions and international banks aim on charging low fees and increased consumer networks. International outward remittances are completed on a safe banking network, thereby controlling the chances of financial damage and scam to both the sender and the recipient.
Furthermore, the inward digital remittance segment is predicted to witness substantial growth during the forecast period due to the increasing use of mobile payment applications in developed countries for money transfers.
By Channel:
The channel segment is divided into banks, money transfer operators, and others. In terms of product, the money transfer operator is the major segment, holding a share of more than 80% of the market revenue. They are able to offer low transfer costs as compared to the banks. Moreover, these money transfer companies offer the same level of reliability and security as banks. The growing shift towards digitization in the cross-border money transfer industry is likely to boost the bank’s segment during the forecast period. The speed of the money transaction is one of the significant benefits offered by money transfer operators. Money transfers start immediately and are processed within one day or two. The overview of digital-first money transfer operators and the rapid introduction of investment and digital initiation abilities from recognized money transfer operators are anticipated to propel the segment’s growth. Moreover, numerous banks across the world are concentrating on incorporating technologies into their remittance platforms to offer faster time to transfer. Also, banks are gradually adopting digital innovation to attain an advantage over competitors. During the pandemic, banks helped workers to seek real-time access to their salaries, thus helping their families.
By End-User
The end-user segment is bifurcated into personal and small businesses. Personal customers hold the largest share of the end-user segment. The personal segment dominates the digital remittance market and accounted for more than 40.0% share of the global revenue in 2021. Also, recently new products and services are being extensively developed to enable suitable use of financial client accounts. Furthermore, increased migration globally is anticipated to boost the integration of digital remittance services by people to send money to their native countries. Increasing smartphone and internet adoption across the world is projected to propel the personal segment growth over the forecast period.
By Region
The regional segment includes Asia Pacific, Europe, North America, the Middle East & Africa, and Latin America. In 2021, the North American region conquered the market and registered for more than 33.0% revenue of the market. This region has the largest number of immigrants thus, increasing the demand for digital remittance services. Furthermore, North America is home to prominent financial service and communication companies including Western Union Holdings, Inc.; Continental Exchange Solutions, Inc.; and MoneyGram. Every year several students migrate to the North American region in hunt of good education, better job opportunities, and business purposes. Furthermore, in the Asia Pacific region, many activities involve the transfer of money overseas including entertainment, education, medicine, and business. Moreover, an increase in cross-border transactions and a step forward towards cashless payment solutions are anticipated to increase the digital remittance market growth during the estimated period. Moreover, China and India are focusing on the adoption of cashless payments, mobile banking, and mobile-based payment solutions, thus, highlighting the regional market growth.
Digital Remittance Market Competitive Landscape:
The competitive landscape of the market has been examined in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), various business strategies, and Deployment launches have accelerated the growth of the Sample Preparation market. Key players in the market include-
- InstaReM
- Flywire
- Western Union (WU)
- Ria Financial Outward Remittance
- SingX Pte Ltd.
- WorldRemit Ltd.
- Azimo Limited
- TransferWise Ltd.
- Ripple
- MoneyGram
Recent Developments:
- A U.S.-based firm called Western Union has launched Cross-Border Payments on the Google Pay app.
- A London-based financial technology company named Wise Platform has combined with US neobank Sable, to offer their customers faster and cheaper money payments worldwide available directly in the Sable app.
- 26 September 2022 – In Japan, a leading foreign exchange brand named Travelex, along with the modern money movement global platform named Medium, introduced the launch of a new digital remittance provider (“Travelex International Money Transfer”) to people.
- In August 2021, a London-based company called WorldRemit Ltd. announced its money transfer services in Malaysia, allowing WorldRemit users to send money from Malaysia, along with 50 other countries, including the U.S. and the U.K., to more than 130 destinations.
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