According to the Market Statesville Group (MSG), the global Digital Remittance Market size is expected to grow from USD 16,442.80 million in 2021 to USD 45,964.90 million by 2030, at a CAGR of 12.1% from 2022 to 2030. Remittance is referred to as sending money by a foreign migrant across the border to another person via electronic payments, drafts, and check options available by the bank. In addition, most remittance service providers, such as banks, focus on digital remittance to enhance their business and provide the customer a quicker transferring services. A web browser, an app, a mobile phone, a tablet, or a computer is required to transfer a digital remittance. The entry of digital-first money transfer organizations (MTOs) has boosted digital remittances in recent years, and the established MTOs responded by swiftly introducing digital initiation and funding capabilities.
The COVID-19 pandemic is expected to have a positive impact on this global digital remittance market growth all over the world. As a result of movement restrictions and other restrictions, digital methods of money transfer have become more prevalent, with regulatory changes encouraging digital payments. COVID-19 has also negatively influenced this sector since the demand for the remittance business has declined as the quantity of money sent home by migrant workers has reduced. As compared to pre-COVID-19 levels in 2019, it has decreased by 14% by 2021. Factors influencing the remittance business decrease include sluggish economic development and employment levels in migrant-hosting nations, low oil prices, and currency devaluation in remittance-source countries against the US dollar.
The internet platforms are expected to increase the most throughout the projection period. Internet money transfer systems effectively manage financial transfers between corporations and their clients. Users can access money transactions directly and manage online fund transfers through these platforms more easily. Most online money transfer platforms offer their clients user-friendly services and help them navigate their sites easily. Furthermore, the increase in the adoption of digital wallets is expected to accentuate the growth in the market. Digital wallets enable customers to track their funds from their digital wallet application.
The use of digital transfer networks such as mobile phones, mobile money, digital currencies of the country, distributed ledgers, electronic identities, and others to transmit money, cross-border payments have become negligible in cost, rapid, auditable, and available to everyone. The use of digital remittances has reduced reliance on cash agents in both sending and receiving countries, which is now contributing to the persistence of high transaction costs. It is also intended to reduce many of the risks, stumbling blocks, and expenses involved with security and know-your-customer compliance (KYC). As a result, banks and money transfer providers employ digital technology to offer remittance services at a lower cost than traditional over-the-counter services, encouraging the adoption of digital remittances in the area.
Increasing cross-border transactions and mobile banking and mobile-based payment solutions are driving the remittance market. This is attributable to the changing customer demands along with emerging market growth. More number of banks are striving to deliver cross-border remittances and value-added services using a relationship-centric approach, which increases the growth and opportunities of digital remittance in the market. With the launch of the HSBC Unitrans act in September 2021, HSBC India aims to simplify the process of transacting across borders.
The study categorizes the Global Digital Remittance Market based on type, channel, and end user at the regional and global levels.
Throughout the projected period, the inbound digital remittance category is predicted to increase the most. Due to growing acceptance of mobile payment technologies for money transfer among migrants, the category is likely to develop throughout the forecast period. A growing number of financial institutions and banks throughout the world are working on implementing real-time banking technology to take advantage of instant payment services. Using this technology, banks may provide services to both non-resident and resident consumers. Migrant workers are focused on using inbound remittance transfer services since they are the safest, quickest, and most popular ways of financial transmission worldwide.
Over this predicted period, the Asia-Pacific area will have the greatest CAGR. The Asia Pacific region's residents send hundreds of trillions of dollars in remittances to colleagues, business partners, and family in other nations each year. An increase in the region's adoption of banking and financial services is predicted to boost regional market growth during the projection period. Countries such as India and China are concentrating their efforts on the adoption of cashless payments, mobile banking, and mobile-based payment solutions, consequently adding to the growth of the regional market.
Frequently Asked Questions
Want to Review Complete Market Research Report
Budget constraints? Get in touch with us for special pricing
Request for Special PricingCustomize this Report
Related Reports
Student Loan Servicing Market 2022: Industry Size, Emerging Trends, Regions, Growth Insights, Opportunities, and Forecast By 2033
Mar 2024Lab Automation Market 2021: Industry Size, Regions, Emerging Trends, Growth Insights, Development Scenario, Opportunities, and Forecast by 2027
Mar 2024Retail Automation Market 2022: Industry Size, Regions, Emerging Trends, Growth Insights, Opportunities, and Forecast By 2030
Mar 2024Mobility As A Service (Maas) Market 2023: Industry Size, Emerging Trends, Regions, Growth Insights, Opportunities, and Forecast By 2033
Mar 2024Web 3.0 Blockchain Market 2022: Industry Size, Emerging Trends, Regions, Growth Insights, Opportunities, and Forecast By 2033
Mar 2024