Global Remittance Market - 2023-2030

Market Overview

The global remittance market size was worth US$ XX million in 2022 and is estimated to reach US$ XX million by 2030, growing at a CAGR of YY% during the forecast period (2023-2030).

Money sent from one party to another is referred to as a remittance. Remittances can broadly be defined as any payment made in response to an invoice or bill. Remittances are cross-border transfers of funds made by foreign migrants using electronic funds transfers, draughts and checks.

Additionally, most remittance service providers emphasize digital remittance to grow their businesses and offer customers faster and easier transfer options. The use of digital channels, which have many advantages, including fast speed, availability 24 hours a day, transparency, convenience of use, high security and others, to transmit money opens up a wide range of options for the remittance sector.

Market Dynamics

The primary drivers of market expansion are the decline in remittance expenses and processing times and the rise in cross-border transactions. But a lack of knowledge about remittance mechanisms can prevent the sector from expanding.

Reducing remittance costs and transfer time

Due to the widespread usage of digital transfer networks for sending money, such as mobile phone technology, mobile money, digital currencies, distributed ledgers, electronic identities and others, cross-border payments have become inexpensive, rapid, auditable and available to everyone. The expansion of digital remittance is anticipated to lessen reliance on cash agents, which is currently maintaining high transaction costs in sending and receiving nations.

It is also anticipated to reduce many risks, difficulties and expenses related to security and know-your-customer programs (KYC). As a result, digital technology is used by banks and money transfer businesses to provide remittance services at significantly lower costs than traditional over-the-counter services, encouraging acceptance of digital remittance in the region. Furthermore, remittance expenses are greatly reduced through the employment of contemporary technologies and government-led public awareness campaigns.

The increasing cross-border transactions

Payment trends in Asia-Pacific are dominated by an increase in cross-border transactions and a shift toward mobile banking and mobile-based payment solutions, which is anticipated to fuel the expansion of the remittance sector. Additionally, due to increased global migration, international trade and changing economic patterns. Real-time international payments may also become a reality due to recent cross-border payment developments.

As the remittance market expands, numerous institutions are working to provide on-time cross-border remittances and value-added services by employing a relationship-centric strategy. For instance, in September 2022, HSBC India introduced HSBC UniTransact, a digital offering designed to simplify international transactions. The service is a one-stop shop that gives customers the seamless integration of all transaction banking-related components while minimizing manual intervention throughout the transaction journey.

The lack of awareness

Market expansion is anticipated to be hampered by low consumer knowledge of digital remittance services and high transfer costs. Additionally, security obstacles, including funding for terrorism and money laundering, may affect the market's possibilities for expansion during the projection period. The market's potential for cyberattacks and security lapses makes its potential for expansion vulnerable.

COVID-19 Impact Analysis

Due to the COVID-19 pandemic's global expansion and the ongoing economic crisis, less money was sent home by migrant workers, which reduced demand for the remittance sector. Furthermore, based on the most recent projections revealed in the Migration and Development Brief of the World Bank, it is anticipated to decrease by 14% by 2022 in comparison to the pre-COVID-19 levels in 2020.

Remittances to low- and middle-income countries (LMICs) are expected to decrease by 7.5% in 2022, to US$ 470 billion, after falling by 7.0% in 2021 to US$508 billion. Weak economic growth and job levels in migrant-hosting nations, low oil prices and currency devaluation of remittance-source nations relative to U.S. dollar are the main causes of the fall in the remittance industry. Furthermore, the use of e-wallet payments in place of cash has significantly expanded due to the rising adoption of digital payments in emerging economies. Additionally, low- and middle-income economies have seen a steady increase in the use of mobile money services.

Segment Analysis

By end-user, the remittance market is segmented into personal, business and public.

The rising global migration drives the growth of the personal segment

The personal segment is predicted to rule the market over the forecast period. Numerous new goods and services are being created to make it easier for customers to use their financial accounts. Additionally, it is anticipated that rising global migration will encourage employees to use digital remittance services to send money home.

Over the forecast period, it is anticipated that increasing smartphone and internet adoption will fuel the personal segment's growth. Innovative solutions are already starting to reshape the landscape of remittance services by providing senders of their families with greater convenience and lower costs.

Geographical Analysis

The growing adoption of mobile banking and cashless payments in Asia-Pacific

Due to the region's increasing immigrant population and increased acceptance of digital remittance, driven by quickly advancing technologies, changing customer expectations and a shifting legal environment, Asia-Pacific is predicted to experience the fastest growth. Each year, many residents of Asia-Pacific send thousands of trillions of dollars in remittances to their family, coworkers and business partners abroad.

Over the projected period, an increase in the region's use of banking and financial services is anticipated to fuel market expansion. The adoption of mobile banking, cashless transactions and mobile-based payment solutions is a major emphasis for economies like China and India, helping the growth of the regional market. Throughout the forecast period, the regional market is anticipated to see growth prospects due to increased competition from new competitors and a growing client base.

Competitive Landscape

The world's remittance market is only slightly fragmented. To strengthen their position in the market, prominent players are implementing various methods, including product innovation, partnerships, R&D projects, mergers & acquisitions, strategic joint ventures and geographic expansion. The management of money transfers between enterprises and between businesses and their clients is handled by money transfer software.

Major global remittance market companies include Bank of America, Citigroup Inc., JP Morgan Chase & Co., Moneygram International Inc., WorldRemit Ltd., Ria Financial Outward Remittance, Banco Bradesco Sa, Euronet globally, Inc., Azimo Ltd. and TransferWise Ltd.

WorldRemit Ltd.

Overview: A digital cross-border remittance company called WorldRemit offers remittance and international money transfer services in more than 130 countries and over 70 different currencies. Ismail Ahmed, Catherine Wines and Richard Igoe created it in 2010. Venture finance firms Accel Partners and Technology Crossover Ventures support WorldRemit (TCV). The company revealed a US$100 million Series B investment round headed by TCV in February 2015. John Rosenberg, the TCV General Partner, was also announced to join the board.

Product Portfolio: The company offers cross-border digital payment services of airtime top-up, bank transfer, cash pick-up and mobile money.

Key Development: WorldRemit Ltd. launched its money transfer services in Malaysia in August 2021, enabling users to send money to more than 130 destinations from Malaysia as well as 50 additional countries, including U.S. and UK Users can select from a variety of payout options for the recipient depending on their location, including payments to mobile wallets, bank deposits, mobile airtime top-ups and cash pick-up.

Why Purchase the Report?

• Visualize the composition of the remittance market segmentation by product, application, end-user and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the remittance market by analyzing trends and co-development deals.
• Excel data sheet with thousands of remittance market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global remittance market report would provide access to an approx. 61 market data table, 52 figures and 205 pages.

Target Audience 2022

• Remittance Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Remittance Manufacturers