Digital remittance market generated revenue Of USD 18.16 Bn In 2022
A recently published Fact.MR report forecasts the demand for digital remittance to expand at a CAGR of 13.5% from 2022 to 2032, reaching US$ 64.43 Bn by end of the said assessment period. Increased digitization of payments has led to improved efficiency, convenience, transparency, access, and reduced transfer prices, which has boded well for the industry in recent years.
From 2015 to 2021, the market for digital remittance inclined at a CAGR of 11%, reaching US$ 16 Bn in value. Digital money transfer services are witnessing increased acceptance among customers in low- and medium-income economies. Furthermore, extensive reliance on contactless payments in the wake of the COVID-19 pandemic has widened popularity of digital remittance platforms and 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.
Key Takeaways from the Market Study
- Global digital remittance market to be valued at over US$ 18 Bn by 2022-end
- By end use, digital remittance for personal use to accumulate 42% of total revenue
- Money transfer operators to conduct 2 out of 5 digital remittance transactions through 2022
- Outward digital remittance to account for 57% of total market revenue across the forecast period
- North America to account for 27% of global digital remittance transactions
- Asia Pacific to flourish at a CAGR of 13% with respect to digital remittance services
“The increased adoption of digital payments in emerging countries has led to a significant rise in the uptake of e-wallet payments instead of cash and will continue to propel market growth”, says a Fact.MR analyst.
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Competitive Landscape
The competitive landscape of the digital remittance market is shaped by product innovation and strategic mergers & acquisitions. Frontrunners are emphasizing capacity enhancements and global footprint expansion to leverage lucrative prospects in developing economies. Some notable developments are as follows:
- 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.
