Digital Remittance Demand is expected to surpass US$ 64 Billion By 2032

According to market insights provided by Fact.MR, the global digital remittance market achieved a market value of US$ 18.16 Billion in 2022 and is expected to exhibit a positive Compound Annual Growth Rate (CAGR) of 13.5% during the forecast period of 2022-2032. This growth trajectory is projected to propel the market to reach a value of US$ 64.43 Billion by the end of the forecast period.

The GSM Association’s data highlights that in 2020, around US$ 12.7 Billion worth of cross-border remittances were processed through mobile money alone. The emergence of digital platforms for remittances is poised to incentivize customers towards online transactions, steering them away from the complexities associated with traditional money transfer methods, such as hidden fees, intermediaries, and cumbersome paperwork.

Significantly, the demand for digital remittance is expected to soar in Asia Pacific nations, propelling it to become the fastest-growing regional market. The Asia Pacific region experiences substantial remittances annually, reaching trillions of dollars, facilitated by citizens sending funds to colleagues, business associates, and families residing abroad.

The growth in the adoption of banking and financial services in the Asia Pacific region, especially in economies like China and India, is anticipated to drive regional market growth. These economies are actively promoting mobile banking, cashless payments, and mobile-based payment solutions, contributing to the overall expansion of the digital remittance market in the region.

The Asia Pacific market is poised to benefit from increased competition from new entrants, along with a growing customer base, creating opportunities for growth. A projected CAGR of 13% is expected for digital remittance services across the Asia Pacific region over the forecast period.

Key Segments Covered in the Digital Remittance Industry Survey

·         By Type

o    Inward Digital Remittance

o    Outward Digital Remittance

·         By Channel

o    Digital Remittance through Banks

o    Digital Remittance through Money Transfer Operators

o    Digital Remittance through Online Platforms

o    Digital Remittance through Other Channels

·         By End Use

o    Digital Remittance for Migrant Labor Workforce

o    Personal Digital Remittance

o    Digital Remittance for Small Businesses

o    Digital Remittance for Other End Uses

Competitive Landscape

The competitive landscape of the digital remittance market is shaped by product innovation and strategic mergers & acquisitions. Front Runners are emphasizing capacity enhancements and global footprint expansion to leverage lucrative prospects in developing economies.

·         In August 2021, WorldRemit Ltd. launched its money transfer services in Malaysia, allowing World Remit users to send money from Malaysia, in addition to 50 other countries, including the U.S. and the U.K., to more than 130 destinations. Based on their location, users can choose from numerous payout methods for the recipient, including payments to mobile wallets, bank deposits, mobile airtime top-up, and cash pick-up.

Key players in the Digital Remittance Market

·         Azimo Limited

·         Digital Wallet Corporation

·         InstaReM Pvt. Ltd.

·         MoneyGram

·         PayPal Holdings, Inc.

·         Ria Financial Services Ltd.

·         TransferGo Ltd.

·         TransferWise Ltd.

·         Western Union Holdings Inc.

·         WorldRemit Ltd.

Key Takeaways from Digital Remittance Market Study

·         North America holds 27% of the market share.

·         The Asia-Pacific is expected to witness a CAGR of 13% between 2022 and 2032.

·         The global digital remittance market was valued at US$ 16 Bn in the year 2021.

·         The same digital remittance market is likely to be worth US$ 64.43 Bn by the year 2032.

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