Remittance Industry Overview
The global remittance market size was valued at USD 48.99 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.1% from 2022 to 2030.
Cross-border remittances provide numerous economic benefits, including increased financial inclusion and economic development. Remittances are extremely important in the lives of migrants and their families. Money received in migrant households in their countries of origin accounts for most of the household income, typically spent on necessities such as medicines, education, food, and housing. Sending money abroad has traditionally been time-consuming and costly, as evidenced by the never-ending chains of intermediaries, hidden fees, and manual paperwork. Fortunately, advancements in the industry over the last few years mean that individuals and even small-to-medium-sized businesses can now benefit from cheaper, faster, and value-added foreign fund transfer services.
Gather more insights about the market drivers, restrains and growth of the Remittance Market
Large corporations, banks, and governments have traditionally enjoyed these advantages through direct access to the institutional foreign exchange market, fueling remittance market growth. Moreover, new players penetrating the remittance market are expanding the levels of competition, using fees as a tangible differentiator to position themselves against peers, bringing more convenience and affordability to the customers, and propelling the market growth.
Incumbents leverage digital platforms' capabilities and enjoy lower fixed costs, and their modern, cleaner technological and operational platforms provide consumers with faster turnaround times. As a result, they can offer lower fees, making remittances affordable for every class of individuals. Moreover, market players are actively partnering with new-age fintech companies to expand their regional foothold.
For instance, in December 2021, Mastercard formed a strategic alliance with ProgressSoft, a provider of real-time payment solutions, to facilitate the integration of Mastercard Cross-Border Services and accelerate international remittances throughout the MEA region.
In another instance, in August 2022, Trustly, an open banking payments company, partnered with Conotoxia, a Poland-based multi-currency company, to provide users with a secure, fast, and safe method to transfer money internationally via their bank accounts. The partnership aimed at allowing future and current customers to benefit from improved flexibility when remitting money into North America.
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Remittance Market Segmentation
Grand View Research has segmented the global remittance market based on the mode of transfer, type, channel, end-use, and region:
Remittance Mode of Transfer Outlook (Revenue, USD Billion, 2017 - 2030)
- Digital
- Traditional (Non-digital)
Remittance Type Outlook (Revenue, USD Billion, 2017 - 2030)
- Inward Remittance
- Outward Remittance
Remittance Channel Outlook (Revenue, USD Billion, 2017 - 2030)
- Banks
- Money Transfer Operators
- Online Platform (Wallets)
Remittance End-use Outlook (Revenue, USD Billion, 2017 - 2030)
- Migrant Labor Workforce
- Personal
- Small Businesses
- Others
Remittance Regional Outlook (Revenue, USD Billion, 2017 - 2030)
- North America
- S.
- Canada
- Europe
- K.
- Germany
- France
- Italy
- Spain
- Asia Pacific
- India
- Philippines
- China
- Japan
- Vietnam
- Latin America
- Brazil
- Middle East Africa
Key Companies profiled:
- Bank of America Corporation
- ZEPZ
- Citigroup, Inc.
- Ria Financial Services, Inc.
- OFX
- Wells Fargo
- Western Union Holdings, Inc.
- PayPal
- MoneyGram International, Inc.
- Wise US, Inc.
Key Companies Insights
Prominent players are pursuing various strategies, such as research development initiatives, product innovations, joint ventures strategic partnerships, expansion, and mergers acquisitions to gain a competitive edge in the market.
- December 2022, Mastercard collaborated with Credit Libanais, a Lebanese bank, to enable inward cross-border payments via direct bank deposits. The use of Mastercard's cross-border services aims to improve international payment processes for the bank's customers. Such initiatives and collaborations by key market players are driving the market's growth.
- August 2022, Payments enabler Currencycloud collaborated with Future FinTech (FTFT) Labs to launch the remittance application, Tempo for U.S. immigrants. FTFT Labs offers its customers a multi-currency wallet with advantageous fees over the competition through this partnership.
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