Global Digital Remittance Market Research Report - Size, Share, Growth, Trends, COVID-19 Impact Analysis - Industry Forecast (2022 to 2030)

  • Category : Information Technology |
  • Report Code : VMR-41385 |
  • Pages: 200 |
  • Published : 2022-03 |
  • Region: Global |
  • Avilable Format : format excel,ppt, Pdf |
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Digital Remittance Market Size (2022-2030)

The global digital remittance market size is projected to grow with a USD 17.98 billion in 2021 to reach USD 58.05 billion by 2030 witnessing a CAGR of 15.2% during the forecasted period.

Remittances are financial lifelines transferred by traveling workers back home. Digital remittances are all cross-border money transfers implemented over the internet by the traveling population. Digital remittances are comparable to a person-to-person version of e-commerce. Moreover, digital remittance plays a vital role as it enables the offering of new and better products and services while controlling and limiting operational costs.

Digital wallets allow customers to track their funds from digital wallet applications. The future is digital.

MARKET DRIVERS

The surging global internet perforation creates different opportunities globally. The market is accelerated by reducing cost and transfer time and remittance costs. The quick adoption of banking and financial services with accumulating a number of campaigns regarding digitalization provides inspiration to the market growth.

The access to financial services is rising amid the remittance recipients fuels the market.

In January 2021, nearly 4.90 billion emerging internet users worldwide, which was around 60.0% of the total population globally.

MARKET RESTRAINTS

However, monetary crimes like money laundering and terrorist financing are security hurdles affecting the market negatively. These crimes diminish the popularity of businesses.

Segment Analysis

Digital Remittance Market - By Type:

  • Inward Digital Remittance
  • Outward Digital Remittance

The outward digital remittance type segment dominated the market in 2021. The segment accounts for more than 55.0% share in terms of revenue. Moreover, International outward remittances are implemented on a safe and secured banking network, reducing the chances of financial loss and scam to both the sender and the recipient. Also, people who are living across other countries send money to their families for support. To support these families, the Financial Institutions and International Banks focus on charging very fewer fees and accelerating customer networks.

The Inward digital remittance segment is estimated to record the highest share over the forthcoming years. Innumerable financial institutions and global banks focus on adopting real-time banking technology to strengthen the Immediate Payment Service (IMPS). Nomad workers concentrate on using wire transfer services for inward remittances as these services are considered the safest, secure, quick, and popular modes of fund transfer.

Digital Remittance Market - By Channel:

  • Banks
  • Money Transfer Operators
  • Online Platforms
  • Others

The money transfer operators channel led the market with 40.0% of the revenue share. Money transfers can be executed instantly and can be processed in a day or two. Besides, the speed of the money transaction is one of the most prominent advantages provided by money transfer operators. Likewise, the quick start of funding and digital initiation capabilities from well and deep-rooted money transfer operators and digital-first money transfer operators propel the market growth.

However, the online platforms segment is scheduled to witness the highest growth pace across the period. Online platforms enable users to have access to money transactions directly and implement the transfer process easier. Online platforms help clients to navigate their sites easily. In addition, the adoption of digital wallets is accumulating market growth.

Digital Remittance Market - By End-User:

  • Migrant Labor Workforce
  • Personal
  • Small Businesses
  • Others

By end-user, the personal segment dominated the digital remittance market. The segment accounts for more than 40.0% of the share throughout the estimated period. New products and services are extensively upgraded to ease suitable use of financial customer accounts. The rising migration drives the growing adoption of digital remittance services by personnel to send money to their home country. 

The migrant labor workforce segment is said to grow at a quicker pace. The segment helps the migrant labor workforce to compare fund transfer costs and efficiently locate support organizations.

Regional Analysis

North America spearheaded the digital remittance market accounting for more than 25.0% revenue share during the historical period. North America is the hub for significant financial service and communication companies like Western Union Holdings Inc., MoneyGram, and Continental Exchange Solutions, Inc. Many people travel to North America for superior education and the best opportunities along with business purposes. The trend for quick money transfer has achieved traction with the launch of innumerable payment applications escalating the market growth in the region.

The European market for digital remittance is said to have noteworthy growth. Northern Europe holds the top position with 96% of the internet penetration pace in population. The growth owes to growth in internet usage with immense growth opportunities for the digital remittance market. 

However, Asia-Pacific is scheduled to appear as the quickest-growing region during the foreseen period. The increasing adoption of banking and financial services in the region fuel the region's growth.

China and India largely focus on growth in the adoption of cashless payments, mobile banking, and mobile-based payment solutions to propel the market growth.

On August 13, 2021, World Remit launched Money Transfer Service from Malaysia.

Latin America is projected to have profitable market growth due to the easier, more reliable, and quick cross-border monetary transactions.

The Middle East and African regions are said to have remarkable growth in the digital remittance market.

New mobile wallet provider uses Stellar blockchain-powered solution to supply unbanked communities in East Africa.

On August 10, 2018, the Bank of Africa and World Remit partnered on Digital Money Transfers.

Also, Western Union and Banque Saudi Fransi allow Saudi Arabia users to make cross-border money transfers via the BSF Internet Banking platform. 

Top key players in the market

  • Azimo Limited
  • Digital Wallet Corporation
  • InstaReMPvt. Ltd.
  • MoneyGram
  • PayPal Holdings, Inc.
  • Ria Financial Services Ltd.
  • TransferGo Ltd.
  • TransferWise Ltd.
  • Western Union Holdings, Inc.
  • WorldRemit Ltd.

 

COVID-19 Impact On Digital Remittance Market

The pandemic has affected global digital remittance positively. During the pandemic crisis, the adoption of digital payments in occurring countries has resulted in a notable increase in the approval of e-wallet payments rather than cash. Consumer preference has been shifting away from cash for years now and with many cash-based remittances, solutions forced to close because of COVID-19. 

The novel coronavirus (COVID-19) has radically changed a lot this year. The digital remittance market has witnessed a positive impact due to the severe outbreak. Due to the COVID-19 pandemic, mobile money services have been continuously increasing over low and middle-income countries. Movement and other restrictions resulted in the adoption of digital approaches to money transfer with regulatory changes being circulated to motivate the digital payments to use. 

 

Recent Happenings

  • On March 14, 2022, IDT Corporation acquired Leaf Global Fintech.
  • On January 11, 2022, MoneyGram announced a partnership with Digital Wallet Corporation, owner of Smiles Mobile Remittance. The partnership enables the Japanese to use the smiles mobile app to send money to more than 200 countries. 
  • On March 09, 2021, PayPal acquired Curv to increase its initiatives to support digital assets. The acquisition helps to accentuate and extend PayPal's initiatives to support cryptocurrencies and digital assets.
  • On October 06, 2021, Azimo announced the Turkish remittance corridor. The launch of the new remittance is advantageous for Azimo users who are based in other countries across the globe.
  • On September 27, 2021, Ria Money Transfer partnered with Paytm Payments Bank to allow Real-Time International Remittances into Paytm's Mobile Wallet.
  • On March 03, 2022, Western Union has combined with Banque Saudi Fransi for digital money transfer. 

Chapter 1. Global Digital Remittance Market – Scope & Methodology

1.1. Market Segmentation

1.2. Assumptions

1.3. Research Methodology

1.4. Primary Sources

1.5. Secondary Sources

Chapter 2. Global Digital Remittance Market – Executive Summary

2.1. Market Size & Forecast – (2021 – 2027) ($M/$Bn)

2.2. Key Trends & Insights

2.3. COVID-19 Impact Analysis

2.3.1. Impact during 2022 - 2027

2.3.2. Impact on Supply – Demand

Chapter 3. Global Digital Remittance Market – Competition Scenario

3.1. Market Share Analysis

3.2. Product Benchmarking

3.3. Competitive Strategy & Development Scenario

3.4. Competitive Pricing Analysis

3.5. Supplier - Distributor Analysis

Chapter 4. Global Digital Remittance Market Entry Scenario

4.1. Case Studies – Start-up/Thriving Companies

4.2. Regulatory Scenario - By Region

4.3 Customer Analysis

4.4. Porters Five Force Model

4.4.1. Bargaining Power of Suppliers

4.4.2. Bargaining Powers of Customers

4.4.3. Threat of New Entrants

4.4.4. Rivalry among Existing Players

4.4.5. Threat of Substitutes

Chapter 5. Global Digital Remittance Market - Landscape

5.1. Value Chain Analysis – Key Stakeholders Impact Analysis

5.2. Market Drivers

5.3. Market Restraints/Challenges

5.4. Market Opportunities

Chapter 6. Global Digital Remittance Market – By Type

6.1. Inward Digital Remittance

6.2.Outward Digital Remittance   

Chapter 7. Global Digital Remittance Market – By Channel

7.1. Banks

7.2. Money Transfer Operators

7.3. Online Platforms

7.4. Others

Chapter 8. Global Digital Remittance Market – By End-User

8.1. Migrant Labor Workforce

8.2. Personal

8.3. Small Businesses

8.4. Others

Chapter 9. Global Digital Remittance Market, By Geography - Market Size, Forecast, Trends & Insights

9.1. North America

9.1.1. U.S.A

9.1.2. Canada

9.1.3. Mexico

9.2. Europe

9.2.1. Italy

9.2.2. Spain

9.2.3. Russia

9.2.4. Germany

9.2.5. UK

9.2.6. France

9.2.7. Rest of Europe

9.3. Asia Pacific

9.3.1. Japan

9.3.2. South Korea

9.3.3. China

9.3.4. India

9.3.5. Australia & New Zealand

9.3.6. Rest of Asia-Pacific

9.4. Rest of the World

9.4.1. Middle East

9.4.2. Africa

9.4.3. South America

Chapter 10. Global Digital Remittance Market – Company Profiles – (Overview, Product Portfolio, Financials, Developments)

10.1. Company 1

10.2. Company 2

10.3. Company 3

10.4. Company 4

10.5 Company 5

10.6. Company 6

10.7. Company 7

10.8. Company 8

10.9. Company 9

10.10. Company 10

  • Primary & Secondary Sources to Collect & Validate Data

  • Utilization of Both Top Down & Bottom Up Approach

  • Holistic Research Methodology


Scope & Introductory Research

In the initial stage of research, the scope for market is defined. In order to better understanding of the market, secondary focus is on different segmentations of the market. Preliminary research involves identifying key data points related to the market under consideration to estimate the market sizes to the best extent.​

Data Collection 

Based on the scope of the market and the key data points, a number of secondary sources are considered. This data collection stage consists of a team of analysts who gather data from various secondary resources, accessing proprietary databases and primary research by reaching out to key market participants and opinion leaders. ​

Data Fusion

At this stage, collected data using several sources is arranged in structured format. The sources include industry participants, in-house models, key opinion leaders in the market ecosystem and databases. Historical data trends are established at this point, and compared to the current scenario. Based on the macro- and micro-factor prevailing in various geographies, proprietary data models are used to analyze key market countries. Key players in this market are listed based on their capabilities in revenue, sales, and development. The study also involves the identification of companies in the category of 'new entrants' and their potential effects on the market.

Data Analysis

At this stage, the analyst team moves on to understand how the market has changed over the years. The total size of the market is gathered after an study of different business segments and end-users is done. An impact research is also done to see what factors will/may influence the market in the years ahead. The effect of various variables on the industry is often taken into account when forecasting market sizes.

Verification ​

Data verification is conducted at all research levels, however this stage is dedicated to more rigorous checking of the data points. At this stage, the estimated data is triangulated with company revenues and checked with industry experts including several senior executives and key opinion leaders in the market. The data is then summarized, and the findings are derived from the same for the report. ​

Quality Assurance & Report Preparation​

Holistic research methodology is followed with combination of Top Down and Bottom Up approach to undertake the estimation and forecasting task in order to ensure quality of data. At this stage of the research process, a dedicated QA team checks the data and approves after several predefined checks. Each section is checked and questioned to make the report accurate and reliable. In case of discrepancy, a team of analysts reviews the issue, and the whole process is repeated again. That significantly improves the report's quality. After approval, all the parts of the report are brought together and is formatted by highly trained team thus making it ready to dispatch.​

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