Remittance Market: Segmented: by Type (Outward Remittance Market and Inward Remittance Market); by Channel Type(banks, Money Transfer Operators, Online Platforms, and others);by End User(Personal, Small Businesses, Migrant Labors and Others); and Region -Analysis of Market Size, Share & Trends for 2016 - 2019 and Forecasts to 2029
Remittance market to surpass USD 956.7 Billion by 2030, which is valued at 657.9 billion in 2019 at a compound annual growth rate of 3.50%.
The money transferred by the migrants to their families residing in their countries of origin is referred to as remittance. The remittance market plays an important role in the world's economic development and the livelihoods of people. In developing countries, cash inflows account for a large portion of their GDP. The demand relies slowly on the migrant population worldwide. Macro-economically, Remittance will raise overall demand and thereby drive both GDP and economic growth. The possibility of more sustainable remittance inflows is strong in countries with diversified migration. Nonetheless, research shows that remittance can also adversely affect the macroeconomic effect by increasing income inequality and reducing the recipient labor supply.
Remittance market is expected to project a CAGR of 3.50% during the forecast period, 2019-2030
The increasing demand for free, reliable, and quicker cross-border monetary transactions can be attributed to market growth. Different businesses service customers and rely on products purchased from international suppliers. Also, receiving customers' payments and making payments to those suppliers, the need for digital remittance has increased.
The outward segment is anticipated to register XX% of the volume share and is expected to grow at the highest CAGR.
GlobalRemittance Market is segmented by type into Outward and inward. Customers prefer this way of exchanging money as it is quicker and easier. Furthermore, this digital remittance service offers security from exchange-rate volatility. The increasing adoption of mobile payment technology is expected to boost growth in the inward remittance segment over the projected timeframe for fund transfer among migrants in developing countries.
The money transfer segment dominated the market in 2019 and accounted for an XX% volume share
The global Remittance Market is segmented by channel type into banks, Money Transfer Operators, Online Platforms, and others. Due to the growing proliferation of cellular applications and mobile banking, launched by financial institutions and money transfer operators, this money transfer operator segment held the largest share of the market. Moreover, in the international remittance industry digitization is expected to provide incumbent operators with growth opportunities.
The personal segment accounted for XX% of the global volume in 2019 and is anticipated to grow at the highest CAGR.
The global Remittance market is segmented by end-user: Personal, Small businesses, migrant laborers, and others. Owing to the large number of funds transferred by the migrants studying abroad, the personal segment had the largest market share in 2019. The increased global penetration of smartphones and the Internet would further fuel growth in the segment during the forecast period.
Fast transfers and reduced cost
Adopting digital communication networks, such as mobile telephones, mobile currencies, and digital ledgers to send money has made cross-border transfers cost-effective, easily auditable, and feasible for everyone. Cross-border payment fees are negligible. The adoption of digital delivery is expected to reduce the dependency of both sending and receiving countries on cash agents that are currently contributing to the sustainment of high transaction costs.
Advantageous over traditional methods
Other threats, challenges, and costs associated with KYC and compliance are addressed by digitally transferred remittance. Therefore, banks and money transfers are using digital technology to offer remittance at much cheaper costs than traditional over-the-counter services which enhances digital transfers' penetration in the area.
Market growth is fueled by the growth of the Internet, mobile penetration, and the use of digital media to pay money has become a common feature in the Asia- Pacific region as customers remit money via digital channels.
Slow growth rate
The demand growth of the remittance industry is projected to be hampered by the lack of Awareness and decline in the growth of Asia Pacific countries. Other factors such as government regulation and de-risking practices may also restrict the growth of the market
North America held the largest market accounting for XX% of the total market volume share in 2019
Several people move to North America to find better employment, education, and business opportunities which tend to drive regional demand growth. There are large companies such as Continental Exchange Solutions Inc., MoneyGram, and Western Union Holdings Inc. in the region to provide financial assistance. The rising number of immigrants from the underdeveloped parts of the world in North America has given a boost to regional demand growth.
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