The “Global Remittance Market Outlook to 2027” report has revealed that the global remittance market has experienced steady growth in recent years, excluding the pandemic year. The market is primarily driven by the increasing use of mobile-based payment channels, cross-border transactions, and the reduction in remittance transfer time and cost.
The growth of the remittance market is fueled by the widespread adoption of banking and financial services worldwide. However, challenges such as rising financial crimes and limited awareness of digital remittance may hinder market growth. Nonetheless, the market offers attractive opportunities driven by technological advancements in digital remittance solutions.
The digital segment is projected to witness significant growth, thanks to the wave of digitalization sweeping across developing countries like India and China. Among the market segments, inward remittances are expected to experience the fastest growth, as migrants strive to support their families during the challenging post-pandemic recovery period.
According to the report, the Asia Pacific region is poised to be the fastest-growing market due to its substantial customer base and the presence of key market players and innovators.
The Global Remittance Market is concentrated among the top 10 players. Market leaders, including Bank of America, Citi Group Inc., PayPal, Wells Fargo, and JP Morgan Chase, are leveraging research and development initiatives, product innovations, partnerships, expansions, and mergers & acquisitions to gain a competitive edge. Collaboration with emerging fintech companies enables these players to offer enhanced remittance services to their customers.
According to publisher estimates, the Global Remittance Market is expected to grow from USD ~701 billion in 2020 to USD ~1,000 billion by 2027. The growth will be driven by factors such as the increasing adoption of mobile-based payment channels, cross-border transactions, and advancements in digital remittance technology. However, challenges such as financial crimes and limited awareness of digital remittance should be addressed to realize the market’s full potential.
Other key trends by market segment are:
- Mode of Transfer: While the traditional (non-digital) segment currently holds the largest revenue share, the digital mode of transfer is expected to register significant growth in the coming years.
- Type: Outward remittances dominate the market, accounting for a significant revenue share, reflecting the global nature of businesses and competition on a large scale.
- Channel: Money transfer operators currently hold the largest revenue share, while online platforms (wallets) are anticipated to exhibit significant growth, offering time-saving convenience to users.
7 June 2023