What Has Been the Growth of the Remittance Market So Far?
The remittance market has seen considerable growth due to a variety of factors.
•In recent times, the remittance market has witnessed significant expansion. The market is projected to rise from a value of $782.54 billion in 2024 to $832.57 billion in 2025, marking a compound annual growth rate (CAGR) of 6.4%.
This growth during the historic period can be ascribed to factors such as global migration trends, labor movement and diaspora groups, disparity in economic conditions, the evolution of remittance corridors, and measures promoting financial inclusion.
What Are the Future Growth Projections for the Remittance Market?
The remittance market is expected to maintain its strong growth trajectory in upcoming years.
• The projections for the remittance market size indicate impressive growth in the impending years. The market is predicted to escalate to a substantial $1067.54 billion by 2029, with a compound annual growth rate (CAGR) of 6.4%.
The anticipated growth during the forecast period is influenced by technological advances in remittance services, socio-economic elements, governmental regulations and modifications, as well as the availability of banking services. The key trends expected during this forecast period consist of digital transformation, the incorporation of blockchain and cryptocurrency, regulatory amendments, the impact of fintech, and the use of mobile wallets and payments.
What Factors Are Driving Growth In The Remittance Market?
The surge in individuals relocating abroad is a significant factor in the expansion of the remittance market. The term 'overseas migration' applies to the process by which individuals traverse borders to reside and work in a different nation. This movement results in remittance transactions as immigrants wire money back to their homeland to assist their families or to manage payments. For example, as per data released in December 2022 by the Australian Bureau of Statistics, a governmental institution based in Australia that is in charge of gathering and analyzing statistics, the count of migrants coming in Australia escalated by roughly 170%, moving from 146,000 in 2021 to 395,000 in 2022. Hence, the surge in overseas migration is serving as a catalyst for the development of the remittance market.
What Are The Main Segments Of The Global Remittance Market?
The remittance market covered in this report is segmented –
1) By Type: Inward Remittance, Outward Remittance
2) By Channel: Banks, Money Transfer Operators, Online Platforms (Wallets)
3) By Application: Consumption, Savings, Investment
4) By End User: Business, Personal
Subsegments:
1) By Inward Remittance: Personal Transfers, Business Payments, Government Transfers
2) By Outward Remittance: Personal Transfers, Business Payments, Investment Payments
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What Emerging Trends Are Influencing The Growth Of The Remittance Market?
The remittance market is seeing a rise in product innovation as a major trend. To keep pace with increasing remittances and maintain their market standing, leading companies in the remittance market are incorporating new technologies like digital wallets. Case in point, WiPay, a payment facilitation firm based in the Caribbean, debuted WiPay Remittance in May 2023. This service allows people in Grenada to quickly transfer funds directly to their WiPay wallet, thereby bypassing the need for physical cash handling and reducing wait times. This groundbreaking approach boosts security and simplifies the process of receiving money from senders anywhere globally. WiPay's ambition is to redefine traditional remittance methods with a smooth, cash-free solution.
Who Are the Key Players in the Remittance Market?
Major companies operating in the remittance market include:
• Ria Financial Services Ltd.
• The Kroger Co.
• JPMorgan Chase & Co.
• Citigroup Inc.
• Bank of America Corporation
• Wells Fargo & Company
• Banco Bradesco S.A.
• PayPal Inc.
• U.S. Bancorp
• Absa Group Limited
• UAE Exchange
• Western Union Holdings Inc.
• Instarem
• XE Money Transfer
• MoneyGram International Inc.
• Remitly Inc.
• Wise Ltd.
• Payoneer Inc
• ZEPZ
• WorldRemit Ltd
• ZelleAirWallex
• Skrill
• OFX
• CurrencyFair Limited
• Azimo Limited
• Popmoney
• TransferGo
• Bithumb
What Is The Most Dominant Region In The Remittance Market?
North America was the largest region in the remittance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the remittance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
