Digital Remittance Market: Covid-19 Pandemic Is Anticipated To Favorably Impact The Growth

 Digital Remittance Industry Overview

The global digital remittance market size is expected to reach USD 60.05 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 15.6% from 2023 to 2030. Developments in the digital space are rapidly changing the dynamics of the digital remittance industry. Digitization can bring several benefits, including improved efficiency, convenience, transparency, access, and reduced transfer prices.

Evolving customer demands with respect to cross-border remittances are expected to accentuate the market growth over the forecast period. Digital money transfer services are witnessing increased acceptance among customers in low- and medium-income economies. Furthermore, increasing incomes and rapid urbanization are driving the demand for digital remittance services.

Cross-border remittances bring many economic benefits, widen financial inclusion, and boost economic development. Digital remittances play an enormous and vital role in the lives of migrants and their families. The money received in migrant households in migrants’ countries of origin represents around 60% of household income, which is normally spent on essential items such as medicines, education, food, and housing expenses.

The COVID-19 pandemic is anticipated to favorably impact the market growth. The pandemic has proved to be a significant growth catalyst for the digitization of remittance services. Various factors such as the closure of money transfer agent locations due to national lockdowns and customers turning to digital solutions out of necessity further accentuated the market growth.


Digital Remittance Market Segmentation

Grand View Research has segmented the global digital remittance market on the basis of type, channel, end use, and region:


Based on the Type, the market is segmented into Inward Digital Remittance, and Outward Digital Remittance.

  • The outward digital remittance segment led the market in 2022 and accounted for more than 58.0% share of the global revenue. People living in other countries are sending money home to support their families. Financial institutions and banks are helping these people in sending money home quickly and safely. International banks and financial institutions are focusing on charging low fees and increasing their customer network.
  • The inward digital remittance segment is anticipated to register the highest growth rate over the forecast period. Increasing adoption of mobile payment technology for money transfer among the migrants is anticipated to propel the segment growth over the forecast period. Numerous financial institutions and banks across the globe are focusing on adopting real-time banking technology to leverage Immediate Payment Service (IMPS).

 


Based on the Channel, the market is segmented into Banks, Money Transfer Operators, Online Platforms, Others.

  • The money transfer operators segment dominated the market and accounted for more than 40.0% share of the global revenue in 2022. Money transfer operators are regularly able to provide lower transfer costs than banks. Moreover, these money transfer companies offer the same level of reliability and security as banks. The speed of the money transaction is one of the significant benefits offered by money transfer operators. 
  • The online platforms segment is anticipated to register the highest growth rate over the forecast period. Online money transfer platforms efficiently manage transfers of funds between organizations as well as organizations and their customers. These platforms allow users to have access to money transactions directly and execute the fund transfer process easier. 

 


Based on the End-use, the market is segmented into Migrant Labor Workforce, Personal, Small Businesses, Others.

  • The personal segment led the market and accounted for more than 44.0% share of the global revenue in 2022. New products and services are being widely developed to facilitate convenient usage of financial customer accounts. Moreover, increasing global migration is expected to drive the adoption of digital remittance services by personnel to send money to their home country. 
  • The migrant labor workforce segment is anticipated to witness significant growth over the forecast period. The digital remittance service helps the migrant labor workforce to compare fund transfer costs and effectively locate support organizations. Moreover, this service has made it easier and more affordable for migrant workers to send money home.

 

Key Companies & Market Share Insights

The market is moderately fragmented. Prominent players are adopting various strategies, such as product innovation, partnerships, research & development initiatives, mergers& acquisitions, strategic joint ventures, and geographical expansion, to strengthen their foothold in the market. Money transfer software manages the transfer of money between businesses as well as between businesses and their customers. Money transfer software and remittances are mainly used by B2B customers and finance professionals to make payments online.

Numerous players in the market are focusing on supporting transactions in various languages, countries, and currencies. For instance, in August 2021, WorldRemit Ltd. launched its money transfer services in Malaysia, allowingWorldRemit 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. Some prominent players in the global digital remittance market include:

  • 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.

 

Order a free sample PDF of the Digital Remittance Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

Contact:

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Grand View Research, Inc.

Phone: 1-415-349-0058

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Email: sales@grandviewresearch.com

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