Based on market data from Fact.MR, the global digital remittance market reached a market size of US$ 18.16 billion in 2022, and over the course of the 2022–2032 forecast period, it is anticipated to grow at a positive Compound Annual Growth Rate (CAGR) of 13.5%. By the end of the forecast period, the market is expected to have grown to a value of US$ 64.43 billion thanks to this growth trajectory.
According to figures from the GSM Association, mobile money accounted for around US$ 12.7 billion in cross-border remittances in 2020. Customers would be encouraged to transact online as a result of the rise of digital remittance platforms, diverting them from the hassles of traditional money transfer methods such hidden fees, middlemen, and needless paperwork.
Notably, the Asia Pacific region is predicted to have a sharp increase in demand for digital remittances, making it the fastest-growing regional market. Each year, the Asia Pacific area receives trillions of dollars’ worth of remittances from its people, who use them to support their families, friends, and coworkers who live outside.
The expansion of the regional market is expected to be driven by the increasing acceptance of banking and financial services in the Asia Pacific region, particularly in nations like as China and India. These economies are aggressively pushing mobile-based payment solutions, cashless transactions, and mobile banking, which helps the region’s digital remittance business grow overall.
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.
