According to a recently released Fact.MR analysis, from 2022 to 2032, the demand for digital remittance is expected to grow at a CAGR of 13.5%, reaching US$ 64.43 Bn. The sector has recently benefitted from increased digitalization of payments due to improvements in efficiency, convenience, transparency, access, and transfer prices.
The market for digital remittances grew at a CAGR of 11% from 2015 to 2021, reaching a value of US$ 16 Bn. Customer acceptance of digital money transfer services is rising in low- and middle-income countries. In addition, the COVID-19 pandemic’s widespread use of contactless payments has increased demand for digital remittance platforms and services.
Financial inclusion is increased and economic growth is accelerated by cross-border remittances, which have numerous economic advantages. For migrants and their families, digital remittances are incredibly important. Around 60% of household income in migrant homes comes from the migrant workers’ home countries, which is typically used to pay for necessities like food, shelter, medical, and education.
Important conclusions from the market study
- By the end of 2022, the global digital remittance market will be worth over US$ 18 billion.
- Digital remittance for personal use will account for 42% of total revenue by end-use.
- 2 out of 5 digital remittance transactions will be carried out by money transfer companies through 2022.
- 57% of all market income will come from outgoing digital remittances throughout the projection period.
- North America will be responsible for 27% of all digital remittance transactions worldwide.
- Asia Pacific is expected to grow at a CAGR of 13% for digital remittance services.
Product innovation and smart mergers and acquisitions have transformed the competitive environment of the digital remittance sector. To take advantage of profitable opportunities in developing nations, leaders are stressing capacity improvements and global footprint growth. The following are some noteworthy developments:
WorldRemit Ltd. launched its money transfer services in Malaysia in August 2021, enabling users to send money to more than 130 destinations from Malaysia as well as 50 additional countries, including the U.S. and the U.K. Users can select from a variety of payout options for the recipient based on their location, including payments to mobile wallets, bank deposits, mobile airtime top-ups, and cash pick-up.
More Beneficial Information
In its most recent study, Fact.MR provides a thorough examination of the digital remittance business, including historical data from 2015 to 2021 and projections for the years 2022 to 2032.
According to type (inward and outward digital remittance), channel (banks, money transfer services, online platforms, and others), and end use (migrant labor workforce, individuals, small businesses, and others) across five major regions, the study provides important insights into the digital remittance market (North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa).