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Digital Remittance Market

Digital Remittance Market

Digital Remittance Market Analysis By Type (Inward, Outward), By Channel (Banks, Money Transfer Operators, Online Platforms), By End Use, By Region - Global Forecast 2022-2032

Digital Remittance Market
FACT7104MR
  • Feb-2022
  • List of Tables : 72
  • List of Figures : 148
  • 170 Pages
  • Technology

Global Digital Remittance Market Outlook (2022-2032)

The digital remittance market has garnered a market value of US$ 18.16 Bn in 2022, anticipated to register a positive CAGR of 13.5% in the forecast period 2022-2032 and reach a value of US$ 64.43 Bn.

Report Attributes

Values

Expected Market Value for 2022

US$ 18.16 Bn

Projected Market Value for 2032

US$ 64.43 Bn

Growth Rate (2022-2032)

13.5% CAGR

Market Share of North America

27%

Value CAGR of Asia Pacific (2022-2032)

13%

Key Digital Remittance Service Providers

  • Azimo Limited
  • Digital Wallet Corporation
  • InstaReM Pvt. Ltd.
  • MoneyGram
  • PayPal Holdings, Inc.
  • Ria Financial Services Ltd.
  • TransferGo Ltd.
  • TransferWise Ltd.
  • Western Union Holdings Inc.
  • WorldRemit Ltd.

Demand Analysis of Digital Remittance from 2015-2021 Vs Future Outlook 2022-2032

From 2015 to 2021, the global digital remittance market registered significant gains, reaching a valuation of US$ 16 Bn in 2021. According to Fact.MR- a market research and competitive intelligence provider, the market flourished at approximately 11% CAGR during the said historical period.

The market growth can be attributed to the increasing fund transfers from migrant workers to their families. Digital remittance services became even more important during the COVID-19 pandemic. Restrictions on travel and public movement led to a reduced frequency of customer visits to banks and other financial institutions for remitting money. People began to increasingly rely on digital payment methods to conduct various transactions.

Moreover, the increasing number of cross-border transactions and the growing adoption of mobile-based payment channels are expected to propel market growth over the forecast period. According to GSM Association, in 2020, funds worth around USD 12.7 billion were processed through mobile money in cross-border remittances. Considering these factors, the market is projected to witness high growth over the coming years, expected to surge 3.5x from 2022-2032.

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What is driving the Market Demand for Digital Remittance?

Rapid Proliferation of Digital Payment Platforms Widening Outreach

The proliferation of the digital platform for remittance is expected to encourage customers to move toward online transactions. Moreover, the rising penetration of mobile devices across the globe in recent years has encouraged the adoption of digital technology in remittance services and cross-border payments. 

Customers across the globe are also shifting toward digital remittance services as they help reduce the money transfer time and remittance costs. Moreover, digital remittance services offer high privacy and protection for consumers’ money.

The endless chains of mediators, hidden charges, and paperwork involved in money transfer made the process costly and arduous. However, the adoption of digital remittance services has helped businesses and customers enjoy more affordable, faster, and value-added money transfer services. The costs involved in transferring money have reduced drastically as a result of healthier competition between market players.

The rising popularity of digital remittance services among low-wage migrant workers, who use these services to send money to their families, is compelling several governing bodies to pay attention to and regulate the digital remittance industry. 

Moreover, foreign remittances play an important role in the economic development of emerging markets. Due to this, authorized regulators control and monitor money transfer fees to encourage customers to continue using digital remittance services and effectively contribute to their home country’s economic growth. These factors are expected to contribute to the market growth over the forecast period.

The increasing adoption and ease of digital payments are expected to create growth opportunities for the market over the forecast period. However, the lack of awareness about digital remittance services and high remittance prices are expected to hinder the market growth. Moreover, security hindrances such as terrorist financing and money laundering could negatively impact the growth prospects of the market over the forecast period.

Country-wise Analysis

How Opportunistic are Growth Prospects across North America?

According to Fact.MR, North America is expected to account for 27% share of the global revenue in 2022. The region is home to prominent financial service and communication companies, such as Continental Exchange Solutions, Inc.; Western Union Holdings, Inc.; and MoneyGram. 

Numerous people migrate to the U.S in search of better education and job opportunities as well as for business purposes. The rising number of immigrants in the region is expected to create growth opportunities for the digital remittance service providers in the region. Furthermore, the trend of faster money transfer has gained traction with the introduction of numerous payment applications in the region.

What Drives the Demand for Digital Remittance in Asia Pacific Countries?

The Asia Pacific regional market is anticipated to emerge as the fastest-growing regional market over the forecast period. Numerous citizens from the Asia Pacific region send thousands of trillion dollars in remittances yearly to colleagues or business partners and families in foreign countries. 

Growth in the adoption of banking and financial services in the region is expected to propel the regional market growth over the forecast period. Economies such as China and India are largely focusing on the adoption of mobile banking, cashless payments, and mobile-based payment solutions, thereby contributing to the regional market growth. 

An increase in competition from new entrants, coupled with the growth in customer base, is expected to create growth opportunities for the regional market over the forecast period. A CAGR of 13% is anticipated for digital remittance services across APAC.

An Adaptive Approach to Modern-day Research Needs

Category-wise Insights

Which End-User of Digital Remittance Leads the Market?

The personal segment leads the market with a share of 42% of the global revenue. New products and services are being widely developed to facilitate convenient usage of financial customer accounts. Moreover, increasing global migration is expected to drive the adoption of digital remittance services by personnel to send money to their home country. 

Growing smartphone and internet penetration across the globe are anticipated to propel the personal segment growth over the forecast period. Innovative solutions are already beginning to change the landscape of remittance services by increasing convenience and reducing costs for senders of remittances and their families.

The migrant labor workforce segment is anticipated to witness significant growth over the forecast period. The digital remittance service helps the migrant labor workforce to compare fund transfer costs and effectively locate support organizations. Moreover, this service has made it easier and more affordable for migrant workers to send money home. Advances in fintech and innovation in cross-border payments are further expected to foster segment growth. 

Which Channel Accounts for Most Traction in the Market for Digital Remittance?

According to Fact.MR, money transfer operators segment accounted for more than 2/5th share of the global revenue. Money transfer operators are regularly able to provide lower transfer costs than banks. Moreover, these money transfer companies offer the same level of reliability and security as banks. The speed of the money transaction is one of the significant benefits offered by money transfer operators. 

Money transfers can be initiated immediately and processed within a day or two. The introduction of digital-first money transfer operators and the rapid introduction of funding and digital initiation capabilities from established money transfer operators are expected to drive the segment over the forecast period.

The online platforms segment is anticipated to register the highest growth rate over the forecast period. Online money transfer platforms efficiently manage transfers of funds between organizations as well as organizations and their customers. These platforms allow users to have access to money transactions directly and execute the fund transfer process easier. 

Numerous online money transfer platforms are focusing on offering user-friendly services to their clients. These platforms are helping clients navigate their sites easily. Furthermore, the increasing adoption of digital wallets is expected to accentuate the segment growth. Digital wallets enable customers to track their funds from their digital wallet application.

Which Type of Digital Remittance Accounts for Maximum Revenue Generation?

The outward digital remittance segment led the market accounts for 57% share of the market. People living in other countries are sending money home to support their families. Financial institutions and banks are helping these people in sending money home quickly and safely. 

International banks and financial institutions are focusing on charging low fees and increasing their customer network. International outward remittances are done on a safe banking network, thereby limiting the chances of financial harm and fraud to both the sender and the recipient.

The inward digital remittance segment is anticipated to register the highest growth rate over the forecast period. Increasing adoption of mobile payment technology for money transfer among the migrants is anticipated to propel the segment growth over the forecast period. Numerous financial institutions and banks across the globe are focusing on adopting real-time banking technology to leverage Immediate Payment Service (IMPS). 

Furthermore, this technology enables banks to offer services to both non-resident and resident customers of the banks. Migrant workers are focusing on using wire transfer services for inward remittances as these services are considered the safest, fastest, and most popular modes of fund transfer.

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Competitive Landscape

The competitive landscape of the digital remittance market is shaped by product innovation and strategic mergers & acquisitions. Front Runners are emphasizing capacity enhancements and global footprint expansion to leverage lucrative prospects in developing economies. 

  • In August 2021, WorldRemit Ltd. launched its money transfer services in Malaysia, allowingWorldRemit users to send money from Malaysia, in addition to 50 other countries, including the U.S. and the U.K., to more than 130 destinations. Based on their location, users can choose from numerous payout methods for the recipient, including payments to mobile wallets, bank deposits, mobile airtime top-up, and cash pick-up.

Digital Remittance Market Report Scope

Report Attributes

Details

Forecast Period

2022-2032

Historical Data Available for

2015-2021

Market Analysis

US$ Mn for Value 

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • MEA

Key Countries Covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Spain
  • Italy
  • BENELUX
  • Nordics
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Brazil
  • Mexico
  • Argentina
  • GCC
  • Turkey
  • South Africa

Key Market Segments Covered

  • Type 
  • Channel
  • End-Use
  • Region

Key Market Segments in Digital Remittance Industry Research

  • By Type

    • Inward Digital Remittance
    • Outward Digital Remittance
  • By Channel

    • Digital Remittance through Banks
    • Digital Remittance through Money Transfer Operators
    • Digital Remittance through Online Platforms
    • Digital Remittance through Other Channels
  • By End Use

    • Digital Remittance for Migrant Labor Workforce
    • Personal Digital Remittance
    • Digital Remittance for Small Businesses
    • Digital Remittance for Other End Uses

- FAQs -

In 2021, the digital remittance market was valued at US$ 16 Bn, according to Fact.MR
As of 2022, the digital remittance industry is likely to be valued at US$ 18.16 Bn
From 2015 to 2021, the market for digital remittance expanded at an 11% CAGR
From 2022-2032, Fact.MR foresees the digital remittance industry to surge at a CAGR of 13.5%
By 2032, digital remittance demand is expected to surpass US$ 64 Bn in valuation, as per Fact.MR
North America is projected to accumulate 27% of the global digital remittance market value
Fact.MR expects the market for digital remittance in the Asia Pacific to flourish at a 13% CAGR
Outward digital remittance is poised to be the largest, capturing 57% of total market revenue

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