What Does the Historical and Current Digital Remittance Market Size Trend Indicate?
The digital remittance market has seen considerable growth due to a variety of factors.
•In recent times, the size of the digital remittance market has seen a swift expansion. The market, which is expected to be worth $25.11 billion in 2024, is projected to increase to $28.95 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 15.3%.
The notable growth during the historic period is a reflection of several factors including globalization and upsurge in migration trends, the proliferation of the internet and digital connectivity, increased usage of mobile phones and smartphones, the rise of online banking and fintech platforms and the increasing demand for quicker and more accessible money transfer options.
How Will the Digital Remittance Market Size Evolve over the Forecast Period?
The digital remittance market is expected to maintain its strong growth trajectory in upcoming years.
• The expansion of the digital remittance market is predicted to surge quickly in the subsequent few years, reaching $51.57 billion by 2029 with a 15.5% compound annual growth rate (CAGR).
This anticipated growth during the forecast period can be attributed to factors such as regulatory modifications that support digital transactions, the creation of safe online payment channels, the acceptance of central bank digital currencies, and the development of affordable and scalable digital payment methods. Other contributing factors include the increase in the use of cryptocurrency for remittances, the inception of immediate and real-time international payment systems, and the rise of remittance-as-a-service (RaaS) models. Key trends for the forecast period incorporate technology advancements in payment systems, the inclusion of blockchain for secure and transparent transactions, the use of artificial intelligence in remittance services, and the integration of biometric verification and machine learning in remittance services.
What Factors Are Driving Growth In The Digital Remittance Market?
The digital remittance market's growth is set to be propelled by an increase in international transactions. Transferring money internationally involves making direct payments to an individual or company's foreign bank account. This procedure can be carried out via a bank, an international money transfer service, virtual platforms or certain agents. Notably, digital remittances offer faster and more efficient transfers in comparison to traditional methods. This is because they utilise modern methods of currency flow and most often, bypass the need for correspondent banking transactions. For example, forecasts from the World Bank, a US-based international financial institution, indicated that official remittance transfers to low- and middle-income countries (LMICs) are expected to experience a 4.2% increase in 2022, reaching $630 billion. Consequently, this surge in international transactions is fuelling the growth of the digital remittance market.
What Are The Main Segments Of The Global Digital Remittance Market?
The digital remittance market covered in this report is segmented –
1) By Type: Inward Digital Remittance, Outward Digital Remittance
2) By Channel: Banks, Money Transfer Operators, Online Platforms, Other Channels
3) By End Use: Migrant Labor Workforce, Individual, Small Businesses, Other End Uses
Subsegments:
1) By Inward Digital Remittance: Person-To-Person (P2P) Inward Remittances, Business-To-Person (B2P) Inward Remittances, Government-To-Person (G2P) Inward Remittances
2) By Outward Digital Remittance: Person-To-Person (P2P) Outward Remittances, Business-To-Business (B2B) Outward Remittances, Person-To-Business (P2B) Outward Remittances
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What Emerging Trends Are Influencing The Growth Of The Digital Remittance Market?
Product innovation is emerging as a significant trend within the digital remittance market. Key players in the industry are focusing on bringing new products and solutions to the marketplace in order to preserve their standing. Take for example the US firm Velmie, a financial tech provider, which unveiled their white-label international remittance software in June 2023. This international cash transfer platform promises to expedite and reduce the cost of worldwide transactions compared to traditional cross-border payments and international cash transfers. In as little as three months, the scalable, flexible, and cost-efficient cloud-native software permits clients to roll out their products. The software is now capable of supporting over 38 global currencies, thanks to an advanced currency conversion engine fueled by live market data and algorithms for maximizing revenue.
Who Are the Key Players in the Digital Remittance Market?
Major companies operating in the digital remittance market include:
• Remitly Inc.
• Citigroup Inc.
• American Express Company
• PayPal Holdings Inc.
• Mastercard Inc.
• Western Union Holdings Inc.
• MoneyGram International Inc.
• Ria Money Transfer
• Wise Payments Limited
• WorldRemit Corp.
• Flywire Payments Corporation
• OzForex Limited.
• Xoom Corporation
• GoCardless Ltd.
• Nium Pte. Ltd.
• PaySend
• OrbitRemit Limited
• Taptap Send
• TransferGo Ltd.
• CurrencyFair
• Currencycloud
• Pangea Money Transfer
• Azimo Ltd.
• Remitbee
• InstaReM Pvt. Ltd.
• Digital Wallet Corporation
• SingX Pte Ltd.
What Is The Most Dominant Region In The Digital Remittance Market?
North America was the largest region in the digital remittance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital remittance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
