Digital Remittance Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Inward, Outward), By Channel (Banks, Money Channel Operators, Online Platforms, Others), By End-User (Migrant Labour Workforce, Personal, Small business, Others), And By Geography - Forecasts From 2023 To 2028

Digital remittance refers to the electronic money transfer of ex-pats to their home countries. This can be done in a variety of ways, including online or through a mobile app. Digital remittance, on the other hand, does not entail sending currency. Instead, a bank account or online wallet is used to send the money. Digital remittances offer various advantages such as faster transfer, lower transaction fees, transfer status tracking, and lack of traveling.

Recently, businesses that specialize in digital money transfers have seen rapid development. For instance, in April 2020, World Remit a digital remittance company saw a 150% year-over-year growth. Younger migrant workers now choose mobile payments over other digital transfer options since they may send money home to unbanked friends and relatives. With minimal prices and straightforward setups, sending and receiving cross-border payments is now simpler than ever. The digital remittance business is anticipated to surpass the traditional sector by 2023, according to projections from the World Bank.

As financial institutions choose to operate in a transparent and data-driven environment, digital remittances are expected to overtake other methods as the main method of remittance. The scale of the digital remittance sector is therefore anticipated to grow. As service providers concentrate on growing their networks to ensure that everyone has access to their banking and financial services, the demand for digital remittances will continue to increase. There is enormous room for expansion in the area of digital remittances. And when more individuals switch to using digital technology and discover that they have more provider options, their expectations will probably increase at the same time. There are numerous chances for growth for money transfer organizations in this industry. Now is the time to compete for new clients by offering more effective, convenient services in addition to lower rates.

However, lack of knowledge and infrastructure regarding digital remittance in emerging economies, data privacy, and security concerns, and stringent regulatory framework is expected to impede the growth of the digital remittance market.

Growth in the adoption of digital remittance services will spur growth

One of the prime factors that will boost the growth of the digital remittance market is the growth in the adoption of digital remittance services. For millions of families, many of whom are low-income, remittances are a crucial source of income. Over 258 million people in 2019 reside outside of their nation of birth, up from 173 million in 2000, and this trend is being followed by a constant stream of business activities. According to World Bank data, Over $600 billion in remittances are sent around the world, $466 billion of which go to low- and middle-income nations. Remittances are a cornerstone of financial health since they are frequently the first financial product used by low-income individuals and frequently serve as a stepping stone to accessing a variety of financial services. Therefore more people are now adopting digital remittance services as they provide various services over the traditional sector. This factor is driving growth in the market.

Digital remittance services are extremely cost-effective because they charge low transaction fees contributing to their popularity. By lowering costs and enhancing convenience for remittance senders and their families, innovative solutions are already starting to change the landscape of remittance services. Mobile technology reduces remittance expenses by half, according to a study on mobile money transfers conducted by the GSMA (the trade group of mobile operators). The average cost of sending a digital remittance is just 3.93%, which is less than half the cost of traditional remittances, according to research from PayPal and Xoom. According to a World Bank and Bank of Albania analysis, recipients may save up to $1.3 million annually and payment service providers could save up to $6.7 million if half of the overseas remittances now received in cash in Albania were received via e-money.

North America is anticipated to hold a significant amount of the market share during the forecast period

North American region is anticipated to hold a significant amount of market share in digital remittance. The presence of leading financial service and communication firms like Continental Exchange Solutions, Inc., Western Union Holdings, Inc., and MoneyGram are based in the area. Many people move to the North American continent in search of better educational possibilities, and employment chances, as well as for business-related reasons. The region's digital remittance service providers are anticipated to experience growth as a result of the increasing immigrant population. The development of multiple payment applications has also helped the trend of quicker money transfers gain popularity in the North American region.

Market Key Developments

• In August 2022, WorldRemit Ltd. began offering money transfer services in Malaysia, enabling consumers to send money to more than 130 destinations from Malaysia as well as 50 other nations, including the U.S. and the U.K.
• In November 2022, Beyon Money declared that BenefitPay (their international remittance service) now offers access to its global remittance service. Customers may take advantage of one of the greatest offers on the market for international transfers with Beyon Money's remittance service, and they can do so right from BenefitPay's smartphone. The unrestricted transfers to India, Pakistan, Bangladesh, the Philippines, and Egypt are available through Beyon Money's international remittance services.

In December 2022, Customers can now receive money from the diaspora to their accounts in Kenya easily thanks to a partnership between KCB Bank Kenya and Mobex (a subsidiary of TerraPay Group, a UK-based provider of digital payments infrastructure and solutions). With TerraPay on board, KCB Bank hopes to improve its position as a significant contributor to improving the global payments ecosystem by providing its clients with quick, inexpensive, and easy-to-use services that take advantage of the expanding use of digital channels.

Segmentation:

• By Type
  • Inward
  • Outward
• By Channel
  • Banks
  • Money Channel Operators
  • Online Platforms
  • Others
• By End User
  • Migrant Labour Workforce
  • Personal
  • Small business
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Others
  • South America
    • Brazil
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Others
  • Middle East and Africa
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Taiwan
    • Thailand
    • Indonesia
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. COVID-19 Scenario

1.3. Market Definition

1.4. Market Segmentation

 

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

 

3. EXECUTIVE SUMMARY

3.1. Research Highlights

 

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. DIGITAL REMITTANCE MARKET ANALYSIS, BY TYPE

5.1. Introduction

5.2. Inward

5.3. Outward

 

6. DIGITAL REMITTANCE MARKET ANALYSIS, BY CHANNEL

6.1. Introduction

6.2. Banks

6.3. Money Transfer Operators

6.4. Online Platforms

6.5. Others

 

7. DIGITAL REMITTANCE MARKET ANALYSIS, BY END-USER

7.1. Introduction

7.2. Migrant Labor Workforce

7.3. Personal

7.4. Small Businesses

7.5. Others

 

8. DIGITAL REMITTANCE  MARKET, BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. USA

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Others

8.4. Europe

8.4.1. Germany

8.4.2. France

8.4.3. United Kingdom

8.4.4. Spain

8.4.5. Others

8.5. Middle East and Africa

8.5.1. Saudi Arabia

8.5.2. UAE

8.5.3. Others

8.6. Asia Pacific

8.6.1. China

8.6.2. Japan

8.6.3. South Korea

8.6.4. India

8.6.5. Taiwan

8.6.6. Thailand

8.6.7. Others

 

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Vendor Competitiveness Matrix

 

10. COMPANY PROFILES

10.1. Azimo Limited

10.2. Digital Wallet Corporation

10.3. InstaReM Pvt. Ltd.

10.4. MoneyGram

10.5. PayPal Holdings, Inc.

10.6. Ria Financial Services Ltd.

10.7. TransferGo Ltd.

10.8. TransferWise Ltd.

10.9. Western Union Holdings, Inc.

10.10. WorldRemit Ltd.

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.