How Has the Mobile Remittance Service Market Evolved Historically and What is its Current Size?
The mobile remittance service market has seen considerable growth due to a variety of factors.
• In the past few years, the mobile remittance service market has experienced swift expansion. The market, estimated at $29.14 billion in 2024, is projected to escalate to $34.32 billion in 2025, displaying a compound annual growth rate (CAGR) of 17.8%.
Factors contributing to the growth during the historic period include the surge in cloud-based technology adoption, enhancement in mobile penetration, reduced administration & operational expenses, increased transparency among cloud providers, and both horizontal and vertical scalability.
What Does Future Hold for The Mobile Remittance Service Market By 2029?
The mobile remittance service market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for mobile remittance services is predicted to witness fast-paced expansion in the upcoming years. It's estimated to reach a value of $65.68 billion in 2029, with a compound annual growth rate (CAGR) of 17.6%.
This projected growth can be attributed to several factors like the surge in contactless transactions, emphasis on the user experience, steady growth of mobile wallets, dawn of decentralized finance, and data security focus. Predominant trends in the same period comprise incorporation of AI and machine learning, application of blockchain technology, supporting regulatory frameworks, widening of financial inclusion initiatives, and proliferation of P2P payments.
What Are The Primary Growth Drivers In The Mobile Remittance Service Market?
The continual surge in smartphone usage is predicted to fuel the expansion of the mobile remittance service market. The term smartphone penetration relates to the ratio of individuals in a certain population that possess and utilize smartphones, thus illustrating the extent of smartphone acceptance in that demography or zone. The escalating rate of smartphone penetration can be credited to their rising affordability brought about by economies of scale, competition among manufacturers, and the presence of low-cost smartphone options. Mobile remittance services leverage the features of smartphones to provide expedience, reachability, swiftness, safety, and economic efficiency in domestic and global fund transfers. Such services typically offer real-time updates and alerts, permitting senders and receivers to track the progress of their transactions. For example, as per the Department of Telecommunications under the Ministry of Information and Communications (MIC), a regulatory authority based in Vietnam, the country recorded 91.3 million smartphone subscribers in 2021. This figure grew by over 2 million by the end of March 2022, culminating in a total of 93.5 million subscribers. Consequently, the increasing smartphone penetration rate is propelling the mobile remittance service market.
What Is The Segmentation Of The Global Mobile Remittance Service Market?
The mobile remittance service 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 Application: Migrant Labor Workforce, Low Income Households, Small Businesses, Other Applications
Subsegments:
1) By Inward Digital Remittance: Cross-Border Remittance To Domestic Accounts, Cross-Border Remittance Via Mobile Wallets, Cross-Border Remittance To Bank Accounts, Peer-To-Peer (P2P) Inward Transfers
2) By Outward Digital Remittance: Sending Funds To International Bank Accounts, Sending Funds To International Mobile Wallets, Cross-Border Remittance To Cash Pickup Locations, Peer-To-Peer (P2P) Outward Transfers
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What Emerging Trends Are Influencing The Growth Of The Mobile Remittance Service Market?
Leading businesses in the mobile remittance service sector are boosting their existing portfolio through the inclusion of sophisticated tech features like international remittance to bolster their market profitability. The term international remittance pertains to cross-border funds transfers carried out by individuals or corporations for reasons like family support, education expenses, or international business deals. For example, in July 2023, an Oman-based fintech service provider, OMPay, introduced a new international remittance feature in its mobile app, OMPay's Digital Wallet. This new addition aims to cater to the varied demographic of Oman by offering user-friendly payment solutions. The feature allows users to transfer and receive payments from nine different countries, providing choices for cash collection or direct transfers to the recipients' digital wallets or bank accounts. Particularly beneficial for overseas students and families, the feature gives a cost-effective way to send money, eliminating travel and service charges and offering competitive foreign exchange rates via OMPay.
Who Are the Key Players In The Mobile Remittance Service Market?
Major companies operating in the mobile remittance service market are:
• PayPal Holdings Inc.
• The Western Union Company
• Zeepay Company Limited
• Toast Inc.
• Ria Financial Services Inc.
• MoneyGram International Inc.
• Wise Group Limited
• Remitly Global Inc.
• Payoneer Inc.
• Zepz Group Limited
• Flywire Corporation
• OFX Group Limited
• CurrencyFair Ltd.
• TransferGo Ltd.
• Currencycloud Limited
• InstaReM Pte. Limited
• Azimo Limited
• TNG Wallet
• Mobetize Corp.
• Monty Global Payments S.A.U.
• Avenues India Pvt Ltd.
• Digital Wallet Corporation
• OrbitRemit Global Money Limited
• USSC Acquisition Corp. (USSC)
• Mobile Money Network Ltd
What Are The Regional Insights Into The Mobile Remittance Service Market?
Asia-Pacific was the largest region in the mobile remittance service market in 2024. The regions covered in the mobile remittance service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
