Remittance Market Developments by 2031
The remittance market size is expected to grow at a CAGR of 11.3% from 2023 to 2031. The market's growth is driven by an increase in cross-border transactions and mobile payment channels, as well as decreasing remittance costs and money transfer times. Furthermore, the increased use of banking and financial sectors around the world drives market growth. Furthermore, ongoing technology advances in the digital remittance business, as well as increased internet and mobile usage, are likely to create attractive potential for remittance market expansion.
Remittance Market Analysis
Remittance is the cross-border transfer of money by a foreign migrant to another individual using electronic payments, drafts, or checks. Furthermore, the bulk of remittance service providers are focused on digital remittance to grow their business and provide clients with better and faster-transferring options. Multiple advantages of using digital channels for money transfer, including fast speed, 24-hour availability, transparency, ease of use, high security, and others, generate multiple potential for the remittance sector.
Remittance Market Industry Overview
- Cross-border remittances have several economic benefits, including greater financial inclusion and economic development. Migrants and their families rely heavily on remittances. The majority of migrant households' income comes from money obtained in their home countries, which is often spent on needs like medication, education, food, and housing.
- Sending money abroad has always been time-consuming and expensive, as indicated by endless networks of intermediaries, hidden fees, and tedious procedures. Fortunately, industry improvements in recent years have resulted in cheaper, faster, and value-added overseas fund transfer services for individuals and small-to-medium-sized organizations alike.
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Remittance Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Remittance Market: Strategic Insights
Naveen
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Remittance Market Driver and Opportunities
Surge Mobile-based Payment Channels and Cross-border Transactions to Drive the Remittance Market
- Market players are focusing on delivering services for cross-border transactions. For instance, in December 2019, Mastercard entered into a strategic alliance with a provider of real-time payment solutions, ProgressSoft, to enable the integration of Mastercard Cross-Border Services and accelerate international remittances throughout the Middle East and Africa (MEA) region.
- Similarly, in August 2022, an open banking payments company named Trustly entered into a partnership with a Poland-based multi-currency company, Conotoxia, to deliver users with a fast, secure, and safe method to transfer money internationally through their bank accounts.
Technological Advancements in the Remittance Market to Create Lucrative Market Opportunities
- Two prominent trends in the global remittance industry include the disruption potential of small technology-driven startups and market consolidation by large players.
- Blockchain is one of the important underlying technologies that can transform the money transfer industry. Although the majority of large financial institutions are reluctant to waive traditional currency and cash for digital currency, acceptance among remittance startups has grown primarily as they use blockchain to deliver faster, better, and cheaper financial services. Thus, technological advancement in the remittance market is expected to create lucrative growth opportunities during the forecast period.
Remittance Market Report Segmentation Analysis
The key segment that contributed to the derivation of the Remittance market analysis is type.
- In 2023, the traditional (non-digital) category generated the major revenue. Cheques and ATMs are among the traditional methods of remitting cash. The consumer's sense of trust and safety when remitting payments via an offline channel is a crucial factor driving the segment's rise.
- In 2023, the outward remittances segment dominated the market. Most businesses are part of the global economy. An external remittance facilitates international commerce and capitalizes on commercial opportunities that would not have existed otherwise.
Remittance Market Share Analysis By Geography
- The scope of the Remittance market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America.
- Asia-Pacific is predicted to have significant growth over the projection period. The growth is due to the fact that the biggest remittance recipient countries, such as India, the Philippines, and China, are in Asia-Pacific. Furthermore, several significant firms from around the world have made efforts to enter the thriving regional market. Thus, these elements are likely to drive regional growth during the predicted period.
Remittance Market Report Scope
Remittance Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the Remittance market. Some of the recent key market developments are listed below:
- In 2022, Payments Enabler Currencycloud entered into a collaboration with Future FinTech (FTFT) Labs to launch the remittance application Tempo for US immigrants. FTFT Labs offers its customers a multi-currency wallet with beneficial fees over the competition through this partnership. [Source: Currencycloud, Company Website]
Remittance Market Report Coverage & Deliverables
The Remittance market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Remittance Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
Asia Pacific is anticipated to grow with a high growth rate during the forecast period.
The major players holding majority shares are Bank of America Corporation, ZEPZ, Citigroup, Inc., Ria Financial Services, Inc., and OFX.
Technological innovations and a surge in demand for alternative lending options in the global remittance market in the coming years.
Less operating costs and a growing focus on serving underbanked individuals are the major factors that propel the global remittance market.
The global Remittance market was estimated to grow at a CAGR of 11.3% during 2023 - 2031.
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Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
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We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
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The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
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- Data Triangulation and Final Review:
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