Remittance Market, By Application (Consumption, Investment, and Savings), By Remittance Channel (Banks, Money Transfer Operator, and Others), By End User (Business and Personal), By Region – Global Analysis Forecast Till 2030

The Global Remittance Market size was estimated at USD 701.93 Bn in 2021 and is expected to hit around USD 1,227.22 Bn at a CAGR of 5.1% by 2030.

Remittances are defined as the cross-border transfer of funds by foreign migrants using checks, draught, or electronic payments. In order to grow their business and offer customers faster and easier transfer services, the bulk of remittance service providers are also concentrating on digital remittance. The use of digital channels, which have many advantages, including fast speed, availability 24 hours a day, transparency, convenience of use, high security, and others, to transmit money opens up a wide range of options for the remittance sector.

When it comes to international transactions, remittance plays a crucial role in facilitating the smooth transfer of funds across borders. Whether it's an individual sending money to support their family or a business making a payment to a foreign supplier, remittance services ensure secure and efficient remittance transfers. Organizations often rely on electronic platforms to remit payments, allowing for convenient and swift transactions. These platforms streamline the remittance process by providing a hassle-free way to initiate and track payment remittances, making it easier for both senders and recipients to manage their financial transactions.

Market Dynamics

Drivers:

The remittance market is expanding because of the increase in mobile-based payment channels, decrease in remittance transfer time & cost, and rise in cross-border transactions. In addition, the expansion of the banking and financial sectors around the world is another factor driving the remittance business. However, it is anticipated that the rise in financial crimes and the lack of knowledge about digital remittance will restrain industry expansion. Additionally, technical developments in the digital remittance market are anticipated to offer attractive chances for business expansion.

Additionally, many banks are working to provide on-time cross-border remittances and value-added services by employing a relationship-centric strategy, which supports the expansion of the remittance sector. For instance, HSBC India introduced HSBC UniTransact in September 2021, a digital offering designed to make international transactions simpler. The solution is a one-stop shop that offers clients the advantage of seamless integration of all transaction banking-related features while minimizing manual involvement throughout the transaction path.

Opportunity:

Cross-border transactions are increasing, and mobile banking and mobile-based payment solutions are becoming more popular throughout Asia-Pacific. These developments are predicted to fuel the expansion of the remittance sector. Additionally, because of the expansion of global trade, migration, and shifting economic trends. The likelihood of real-time international payments becoming a reality is another result of recent cross-border payment developments.

Utilization of digital transfer networks for sending money, such as mobile phone technology, mobile money, digital currencies, distributed ledgers, electronic identities, and others, cross-border payments have decreased in cost, and become rapid, auditable, and available to everyone. It is anticipated that the introduction of digital remittance will lessen the reliance on cash agents in both sender and recipient countries, which is currently maintaining high transaction costs.

Key players:

• Bank of America

• Citigroup Inc.

• JPMorgan Chase & Co.

• MoneyGram International Inc.

• RIA Financial Services Ltd.

• TransferWise Ltd.

• UAE Exchange

• Wells Fargo

• Western Union Holdings Inc.

• XOOM

Market Segmentation:

Remittance Market, By Application      

• Consumption

• Savings

• Investment

Remittance Market, By Remittance Channel         

• Banks

• Money Transfer Operator

• Others

Remittance Market, By End User

• Business

• Personal

Remittance Market, By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa (MEA)

Regional Analysis:

The North American region dominated the remittance market by accounting for more than XX% of global sales in 2021. Available financial service and communication firms based in the area include Continental Exchange Solutions, Inc., Western Union Holdings, Inc., and MoneyGram. People from around the world move to the North American continent frequently for economic, educational, and employment reasons. The region's digital remittance service providers should benefit from growth prospects brought on by the increasing immigrant population. Additionally, with the advent of multiple payment applications, the trend of quicker money transfers has gained hold in the North American market.

Over the projected period, the Asia Pacific regional market is anticipated to develop at the fastest rate. Each year, countless residents of the Asia Pacific area send thousands of trillions of dollars in remittances to friends, family members, and business partners abroad. Over the projection period, the region's market expansion is anticipated to be driven by increase in banking and financial services usage. Economies like China and India are heavily emphasizing the adoption of mobile banking, cashless transactions, and mobile-based payment solutions, which is assisting in the expansion of the regional industry. Over the course of the projection period, growth possibilities for the regional market are anticipated to be brought on by a rise in rivalry from new players and the expansion of the consumer base.

Scope of the Report:

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