Digital Remittance Market Size, Share & Demand By 2031

(MENAFN- Straits Research) Introduction

Digital remittance is the electronic transmission of money or funds across international borders using digital platforms such as websites, mobile applications, or digital wallets. It makes international money transfers rapid, secure, and convenient. The popularity of digital remittance services has increased due to their many advantages over more conventional methods such as wire transfers and currency transfers.

Senders can initiate transactions using a user-friendly digital remittance interface, input the recipient's information, and electronically transmit funds. The recipient typically receives the funds in their local currency via a cash pick-up location or bank account. Digital remittance platforms typically offer competitive exchange rates, low fees, and quicker transfer speeds than traditional methods. They employ secure internet platforms, encryption, and identity verification procedures to guarantee the security and integrity of transactions.

Market Dynamics Increasing Number of Migrants from Developing Nations to Developed Nations
Drives the Global Market

Many individuals from developing nations such as India, China, South Africa, and Lebanon migrate to industrialized nations for improved employment and education opportunities. Better employment opportunities and economic incentives are the primary motives for migration to prosperous nations. Between the ages of 18 and 30, most migrants fall. Numerous industrialized nations provide migrants with benefits, such as social and economic stability and a well-developed infrastructure for higher education. The U.S., Germany, Saudi Arabia, Russia, and the United Kingdom are among the nations with the largest immigrant populations. The Pew Research Centre states that more than 40 million migrants have registered in the United States.

Increasing Use of Block Chain Technology for Cross Border Payments
Creates Tremendous Opportunities

Traditional cross-border payments can now be made more swiftly, affordably, and securely using blockchain technology. Blockchain technology employs an encrypted ledger for real-time verification, unlike SWIFT, which charges fees for bank-to-bank transactions. It eliminates the requirement for intermediary banks. Many companies, such as Ripple Labs Inc., which provides the Ripple payment network and XRP currency, offer cross-border payments enabled by blockchain technology. Unlike typical transactions, which take 3–4 days to complete, these take 5–7 seconds. Banks around the globe are integrating blockchain technology into their payment networks to facilitate cross-border transactions.

Bank in India has partnered with Ripple Labs to facilitate incoming remittances utilizing blockchain technology from the United Kingdom, North America, and the Middle East. This expedites the processing of procedures and reduces the settlement period. Using blockchain technology to eliminate numerous intermediaries in conventional cross-border money transfers results in significant cost savings for users.

Regional Analysis

North America is the most significant global digital remittance market shareholder and is estimated to exhibit a CAGR of 12.0% over the forecast period. Companies such as Continental Exchange Solutions, Inc., Western Union Holdings, Inc., and MoneyGram are all headquartered in this area, making it a major hub for the financial services and communication industries. A significant number of people migrate to the North American region in the expectation of enhancing their educational and professional opportunities, as well as conducting business there. Other motivations for this migration include the desire to find better economic opportunities. The growing population of immigrants in the region would create opportunities for firms that provide digital remittance services to expand and grow.

Additionally, the development of various payment applications has helped fuel the movement toward accelerating the process of transferring money in the North American region. This movement is being driven by the acceleration of moving money from one location to another.

Asia-Pacific is anticipated to exhibit a CAGR of 13.94% over the forecast period. Over the projected period, it is anticipated that the Asia Pacific regional market will become the one with the fastest growth. Many residents of the Asia Pacific region annually remit thousands of trillions of dollars to friends, family members, and business partners abroad. Over the projected period, an increase in the region's use of banking and financial services is anticipated to fuel market expansion. Adopting mobile banking, cashless transactions, and mobile-based payment solutions is a major emphasis for economies like China and India, helping the regional market's growth. Throughout the forecast period, the regional market is anticipated to see growth prospects due to rising competition from new competitors and a growing client base.

Key Highlights

• The global digital remittance market size was valued at
  USD 19.65 billion in 2022.
  It is estimated to reach
  USD 72.44 billion by 2031 , growing at a
  CAGR of 15.6%
  during the forecast period (2023–2031).
• Based on the type, the global digital remittance market is bifurcated into inward and outward digital remittance. The outward digital remittance segment dominates the global market and is projected to exhibit a CAGR of 12.4% over the forecast period.
• Based on channel, the global digital remittance market is segmented into banks, money transfer operators, online platforms, and others. The money transfer operators segment owns the highest market share and is predicted to exhibit a CAGR of 13.0% during the forecast period.
• Based on end-users, the global digital remittance market is divided into migrant labor workforce, personnel, small businesses, and others. The personal segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 14.0% over the forecast period.
• North America is the most significant global digital remittance market shareholder and is estimated to exhibit a CAGR of 12.0% over the forecast period.

Competitive Players

Azimo Limited

Digital Wallet Corporation

Insta Re M Pvt. Ltd.

MoneyGram

PayPal Holdings, Inc .

Ria Financial Services Ltd.

Transfer Go Ltd.

TransferWise Ltd.

Western Union Holdings, Inc.

World Remit Ltd.

Recent Developments

Recent Developments

• October 2023- Mbank partnered with LuLu Exchange to offer its customers digital remittances and account deposits. The partnership taps into LuLu Exchange's remittance-as-a-service and open banking platforms.
• September 2023- Esewa Money Transfer continued with“Mero Digital Desh,” which aims to promote digital remittance. Through this initiative, the remittance service company, being operated under the stewardship of Fintech company F1Soft Group, aims to promote formal remittance and make people aware of the advantages of sending money through digital channels.

Segmentation

By Type

Inward Digital Remittance

Outward Digital Remittance

By Channel

Banks

Money Transfer Operators

Online Platforms

Others

By End-User

Migrant Labor Workforce

Personal

Small Businesses

Others

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