Global Digital Remittance Market

Digital Remittance Market Size, Share, Growth Analysis, By Type(Inward Digital Remittance and Outward Digital Remittance), By Channel(Banks, Money Transfer Operators, Online Platforms, and Others), By End-use(Migrant Labor Workforce, Personal, Small Businesses, and Others), By Region - Industry Forecast 2024-2031


Report ID: SQMIG40A2009 | Region: Global | Published Date: March, 2024
Pages: 207 |Tables: 90 |Figures: 76

Digital Remittance Market Insights

Global Digital Remittance Market size was valued at USD 19.65 Billion in 2022 and is expected to grow from USD 22.72 Billion in 2023 to reach USD 72.44 Billion by 2031, at a CAGR of 15.60% during the forecast period (2024-2031). 

The market expansion can be ascribed to the rise in family-to-family money transfers by migratory workers. Additionally, it is anticipated that throughout the course of the forecast period, the volume of cross-border transactions and the use of mobile-based payment channels would both increase. According to the GSM Association, mobile money was used to handle cross-border payments of about USD 12.7 billion.

The growth of digital transfer platforms should cause customers to choose online transactions. The popularity of electronic devices in cross-border payments & remittance services has also been aided by the rise in mobile device usage over the past few years. Due to how fast and inexpensively they can transmit money, customers across the world are switching to digital remittance services. Additionally, digital remittance service providers provide their clients great degrees of financial security and anonymity.

The entire process of transferring money was expensive and time-consuming due to the mediators' never-ending chains, extra fees, and paperwork. But the introduction of digital remittance services has made it possible for companies and clients to benefit from faster, more inexpensive, and value-added services for transferring money. Due to increased market competition, the costs associated with money transfers have significantly decreased.

A number of regulators have been driven to pay heed to and regulate the digital remittance business due to the growing popularity of digital remittance networks amongst low-wage migrant workers that utilize these services to send cash to their family. Additionally, international remittances contribute significantly to the growth of emerging markets' economies. As a result, authorized regulators oversee and manage money transfer fees to entice users to keep using digital remittance services in order to support the economic development of their home nation. Over the course of the forecast, these variables are anticipated to support market expansion.

The high transfer fees and lack of knowledge about digital remittance services, however, are anticipated to impede the growth of the industry. Additionally, security barriers including money laundering and terrorism funding may have a detrimental effect on the market's growth prospects during the forecast period. The market is probably going to gain from the expanding acceptance & simplicity of digital payments during the course of the projected period.

US Digital Remittance Market is poised to grow at sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Market Size

USD 19.65 Billion

Largest Segment

Inward

Fastest Growth

Inward

Growth Rate

15.60% CAGR

Global Digital Remittance Market ($ Bn)
Country Share for North America Region (%)

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Digital Remittance Market Segmental Analysis

The global digital remittance market is segmented based on type, channel, end-use, and region. Based on type, the market is segmented into Inward Digital Remittance and Outward Digital Remittance. Based on channel, the market is segmented into Banks, Money Transfer Operators, Online Platforms, and Others. Based on End-use the market is segmented into Migrant Labor Workforce, Personal, Small Businesses, Others. Based on region the global Digital Remittance Market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Digital Remittance Market Analysis by Type

The outward digital remittance sector dominated the market and generated more than 58.0% of total revenue in 2022. International residents send money home to support their relatives. Banks and financial organizations are assisting these people in securely and quickly moving money home. Low fees and expanding their clientele are priorities for international banks & financial organizations. International outgoing remittances are carried out across a secure banking network, minimizing the possibility of fraud and financial loss for both the sender & the recipient.

The inbound digital remittance segment is likely to grow at the fastest rate during the forecast period. More migrants are expected to use the technology of mobile payments for money transfers during the projected period, accelerating the segment's expansion. To take use of the Immediate Payment Service (IMPS), real-time banking technology adoption is a major goal of numerous financial institutions and banks worldwide. Additionally, banks may now serve both their resident & non-resident clientele thanks to technology. Migrant workers are focusing on using wire transfer services for inbound remittances since they are thought of as the most reliable, efficient, and common ways of financial transmission.

Digital Remittance Market Analysis by Channel

The money transfer operators market segment held a 40.0% share of global revenue, dominating the industry. Bank transfer costs are frequently lower than those offered by money transfer companies. These money transfer companies also offer banks-like levels of security and trustworthiness. One of the key advantages provided by money transfer companies is the quickness of the transaction. Transfers of money can be started right away and finished in a day or two. The category is projected to be driven over the projection period by the arrival of money transfer businesses that only work with electronic transactions and the swift uptake of funding & digital commencement capabilities by experienced money transfer businesses.

The category for online platforms is anticipated to grow at the fastest rate during the anticipated time period. Platforms for online money transfers effectively control the transmission of money between businesses and between businesses and their clients. These platforms facilitate fund transfers and provide users with instant access to financial activities. The focus of many online money transfer businesses is on offering user-friendly services to their clients. Customers can easily browse the websites of these platforms. The increasing use of electronic wallets is also projected to speed up category growth. Customers that use electronic wallets can check the status of their money directly from the app.

Global Digital Remittance Market By Type, 2023 (%)

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Digital Remittance Market Regional Insights

North American dominated the market and generated more than 28.0% of worldwide sales in 2022. The region is home to well-known financial service and communication companies like Continental Exchange Options, Inc., Western Union Holdings, Inc., and MoneyGram. Many people move to the North American continent in search of improved educational possibilities, employment chances, as well as for business-related reasons. The region's digital remittance services are anticipated to experience growth as a result of the increasing immigrant population. The development of multiple payment applications has also helped the trend of quicker money transfers gain popularity in the North American region.

The Asia Pacific regional market is anticipated to grow at the fastest rate of any region during the course of the forecast. A lot of individuals that live in the Asia Pacific region send thousands of billions of dollars in remittances to friends, family, & business partners abroad every year. The region's expanding use of financial and banking services is expected to fuel market expansion throughout the course of the projected period. Developing nations like China and India are placing a strong emphasis on using mobile banking, electronic payments, and mobile-based payment methods to support the growth of the regional market. The regional market is predicted to have growth opportunities over the course of the forecast period as a consequence of a rise in rivalry from new rivals and a rise in the number of customers.

Global Digital Remittance Market By Geography, 2024-2031
  • Largest
  • Fastest

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Digital Remittance Market Dynamics

Digital Remittance Market Drivers

Increasing Global Migration

  • The rise in global migration and the need for cross-border money transfers have led to the growth of the digital remittance market. As more people move to different countries for work or other purposes, there is a greater demand for convenient and cost-effective ways to send money back home.

Digital Remittance Market Restraints

Regulatory Challenges

  • The digital remittance market is subject to various regulations and compliance requirements, including anti-money laundering (AML) and know-your-customer (KYC) regulations. Adhering to these regulations can be complex and time-consuming, creating barriers for smaller players to enter the market and comply with regulatory requirements.

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Digital Remittance Market Competitive Landscape

The market is only slightly fragmented. To strengthen their position in the market, prominent players are implementing a variety of methods, including product innovation, collaborations, R&D activities, mergers and acquisitions, strategic joint ventures, and geographic expansion. Software for managing money transfers between enterprises and between businesses & their clients. B2B clients and financial professionals utilize money transfer software & remittances primarily to make payments online.

Many market participants are concentrating on facilitating transactions in different languages, nations, and currencies. For instance, WorldRemit Ltd. launched its money transfer services in Malaysia in 2021, enabling WorldRemit users to send money to over 130 locations from Malaysia as well as 50 other countries, including the U.S. and the U.K. Users can select from a variety of payout options for the recipient based on their location, including payments to smartphones, bank deposits, phone airtime top-ups, and cash pick-up.

Digital Remittance Market Top Player’s Company Profiles

  • MoneyGram
  • WorldRemit
  • Remitly
  • Ria Financial Services
  • Paytm
  • Azimo
  • Xoom (a PayPal service)
  • InstaReM
  • OFX
  • CurrencyFair
  • TransferGo
  • Pangea Money Transfer
  • OrbitRemit
  • WorldFirst
  • Remitbee
  • Transfast
  • Skrill

Digital Remittance Market Recent Developments

  • In February 2024 Digital Wallet Corporation (DWC), did an agreement with Seven Bank, Ltd (Seven Bank), a Japanese bank, to acquire its subsidiary and international money transfer service, Seven Global Remit, Ltd. DWC owns and operates Smiles Mobile Remittance. This acquisition will allow DWC and Seven Bank to collaborate in redefining and improving the landscape of international money transfer services and financial inclusion for foreign residents in Japan. 
  • In February 2024, Visa signed an agreement with Egyptian Banks Company to introduce new solutions around electronic payment services, digital wallets and other offerings. The partnership aims to expand the scope of instant payments and streamline the receipt of international remittances from Egyptian expatriates, the companies said in a Sunday (Feb. 11) press release. 
  • In January 2024, Arab Bank and Mastercard announced the launch of cross border payment services RemitEx.  The new collaboration leverages Mastercard's Cross-Border Services platform to provide a remittance product that will enable Arab Bank’s customers to make faster, safer and full-value transfers without fees for the recipient. 
  • In August 2021, World Remit Ltd launched services for money transfers in Malaysia, enabling customers to send cash to more than 130 destinations from Malaysia as well as 50 other nations, including the US and the UK. Users have access to a variety of compensation options for the receiver depending on where they are located. comprising cash pick-up, bank deposits, airtime top-ups for mobile devices, and payments to mobile wallets. 

Digital Remittance Key Market Trends

  • Increasing Adoption of Digital Payment Solutions: The digital remittance market is witnessing a significant shift towards digital payment solutions. Consumers are increasingly adopting mobile wallets, online platforms, and other digital channels for remittance transactions, leading to the growth of the market.
  • Rising Cross-Border Migration: The increasing number of people migrating to different countries for work or education is driving the demand for digital remittance services. These individuals rely on remittance platforms to send money back to their families in their home countries, contributing to the growth of the market.
  • Growing Importance of Mobile Remittance: Mobile remittance solutions are gaining popularity due to their convenience, accessibility, and ease of use. Mobile apps and digital wallets enable users to send and receive money anytime and anywhere, leading to the growth of the market.
  • Emergence of Blockchain Technology: Blockchain technology is being increasingly adopted in the digital remittance market. It offers benefits such as enhanced security, transparency, and faster transaction settlements, leading to increased efficiency and reduced costs in remittance processes.

Digital Remittance Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our global digital remittance market analysis, the growing popularity of digital remittance networks amongst low-wage migrant workers that utilize these services to send cash to their family resulted in high revenue generation for the market. Additionally, international remittances contribute significantly to the growth of emerging markets' economies. As a result, authorized regulators oversee and manage money transfer fees to entice users to keep using digital remittance services in order to support the economic development of their home nation. Over the course of the forecast, these variables are anticipated to support market expansion.

Report Metric Details
Market size value in 2023 USD 19.65 Billion
Market size value in 2031 USD 72.44 Billion
Growth Rate 15.60%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Type
    • Inward Digital Remittance and Outward Digital Remittance
  • Channel
    • Banks, Money Transfer Operators, Online Platforms, and Others
  • End-use
    • Migrant Labor Workforce, Personal, Small Businesses, and Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • MoneyGram
  • WorldRemit
  • Remitly
  • Ria Financial Services
  • Paytm
  • Azimo
  • Xoom (a PayPal service)
  • InstaReM
  • OFX
  • CurrencyFair
  • TransferGo
  • Pangea Money Transfer
  • OrbitRemit
  • WorldFirst
  • Remitbee
  • Transfast
  • Skrill
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Digital Remittance Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Digital Remittance Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Digital Remittance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Digital Remittance Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Digital Remittance Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Digital Remittance Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Digital Remittance Market size was valued at USD 19.65 Billion in 2022 and is expected to grow from USD 22.72 Billion in 2023 to reach USD 72.44 Billion by 2031, at a CAGR of 15.60% during the forecast period (2024-2031). 

The market is only slightly fragmented. To strengthen their position in the market, prominent players are implementing a variety of methods, including product innovation, collaborations, R&D activities, mergers and acquisitions, strategic joint ventures, and geographic expansion. Software for managing money transfers between enterprises and between businesses & their clients. B2B clients and financial professionals utilize money transfer software & remittances primarily to make payments online. 'Western Union', 'PayPal', 'TransferWise (now Wise)', 'MoneyGram', 'WorldRemit', 'Remitly', 'Ria Financial Services', 'Paytm', 'Azimo', 'Xoom (a PayPal service)', 'InstaReM', 'OFX', 'CurrencyFair', 'TransferGo', 'Pangea Money Transfer', 'OrbitRemit', 'WorldFirst', 'Remitbee', 'Transfast', 'Skrill'

The rise in migration and the need for cross-border money transfers have led to the growth of the digital remittance market. As more people move to different countries for work or other purposes, there is a greater demand for convenient and cost-effective ways to send money back home.

Increasing Adoption of Digital Payment Solutions: The digital remittance market is witnessing a significant shift towards digital payment solutions. Consumers are increasingly adopting mobile wallets, online platforms, and other digital channels for remittance transactions, leading to the growth of the market.

North American dominated the market and generated more than 28.0% of worldwide sales in 2022. The region is home to well-known financial service and communication companies like Continental Exchange Options, Inc., Western Union Holdings, Inc., and MoneyGram. Many people move to the North American continent in search of improved educational possibilities, employment chances, as well as for business-related reasons. The region's digital remittance services are anticipated to experience growth as a result of the increasing immigrant population. The development of multiple payment applications has also helped the trend of quicker money transfers gain popularity in the North American region.

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