The Global Digital Remittance Market size was valued at USD 20.11 Billion in 2022 and is expected to surpass USD 62.86 Billion by 2031, expanding at a CAGR of 13.5% during the forecast period, 2023–2031. Payment automation and digitalization are projected to drive market in the coming years. Digital remittance is cross-border money transfer made by migrants using the Internet.
Fund transfers between residents and non-residents, and wage transfers from short-term workers in other nations to their home country, are examples of remittances. Clients pick digital remittances, as they are require less time. Remittance is frequently made and most user groups are not prone to altering their fund transfer provider on a regular basis. Digital remittance services provide consumers with high protection and anonymity, thus propelling the digital remittance market.
Market Trends, Drivers, Restraints, and Opportunities
Many digitally savvy customers choose digital remittances and wide applications of the technology among various industries are key factors fueling the market.
Growing number of economic migrants migrating from developing to developed nations in pursuit of jobs and better life is expected to fuel the market growth in the coming years.
Rising demand for digital remittances due to expanding their networks to increase access to their banking and financial services presents a key driving factor of the market.
Lack of awareness among end-users and growing concerns related to issues of privacy violation of users are key restraining factors impeding the market.
Digitization of the easy cross-border money transfer process and reducing transaction fees are likely to create opportunities for incumbent operators of the market.
Scope of Digital Remittance Market Report
The report on the global digital remittance market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Digital Remittance Market- Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Types (Inward Remittance and Outward Remittance), Channels (Online Inward Remittance, Money Transfer Operators, Banks, and Others), End-users (Migrant Labor Workforce, Individual/Personal, and Businesses)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Azimo Limited; Digital Wallet Corporation; InstaReM Pvt. Ltd.; MoneyGram; PayPal Holdings, Inc.; Ria Financial Services Ltd.; TransferGo Ltd.; TransferWise Ltd.; Western Union Holdings, Inc.; and WorldRemit Ltd.
Digital Remittance Market Segment Insights
In the terms of product types, the global digital remittance market is bifurcated into inward remittance and outward remittance. The outward digital remittance segment is expected to hold dominant market share during the forecast period owing to easy process of sending money among people living in different nations.
Moreover, wide support from big financial organizations and banks to assist customers to experience hassle-free money transfer in secure manner proves to be a major driver of the segment. Multinational network of banks and financial institutions are concentrating on charging cheap costs and expanding their customer base.
Based on channels, the market is fragmented into online inward remittance, money transfer operators, banks, and others. The money transfer operator segment is projected to continue to constitute key share of the market in the coming years due to increasing usage of mobile-based apps and mobile banking, offered by financial institutions and money transfer operators.
Money transfer companies often offer lower transfer fees than banks, while retaining the same level of trust and security as the banks. One of the key advantages provided by money transfer providers is the quick money transfer, which is within a day or two.
On the basis of end-users, the global digital remittance market is segregated into migrant labor workforce, individual/personal, and businesses. The individual/personal segment is anticipated to account for large market share during the projected period as easy financial transaction process is available for several individual customers. The individuals can use digital remittance services to deposit checks drawn in foreign currencies and payable at foreign centers for crediting to their accounts.
New services are being introduced and adopted to make financial transitions convenient to use. Furthermore, rising migration worldwide is projected to drive the use of digital remittance services to transfer money back home. Adoption smartphone and internet around the globe are expected to drive the segment during the forecast period.
In terms of regions, the market is classified as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market of North America is likely to grow rapidly in the coming years due to the use of advanced technology among several end-users and large companies in the region.
Many people come to North America in quest of higher education, work, and business opportunities, which has resulted in rising immigrant population. This is likely to create opportunities for digital remittance service providers in the region.
- Inward Remittance
- Outward Remittance
- Online Inward Remittance
- Money Transfer Operators
- Migrant Labor Workforce
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
- Azimo Limited
- Digital Wallet Corporation
- InstaReM Pvt. Ltd.
- PayPal Holdings, Inc.
- Ria Financial Services Ltd.
- TransferGo Ltd.
- TransferWise Ltd.
- Western Union Holdings, Inc.
- WorldRemit Ltd
Key players in the global digital remittance market are Azimo Limited; Digital Wallet Corporation; InstaReM Pvt. Ltd.; MoneyGram; PayPal Holdings, Inc.; Ria Financial Services Ltd.; TransferGo Ltd.; TransferWise Ltd.; Western Union Holdings, Inc.; and WorldRemit Ltd. These players have consistently engaged in various business expansion activities such as mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.