Remittance Market Analysis North America,Europe,APAC,Middle East and Africa,South America - US,Saudi Arabia,United Arab Emirates,UK,Germany - Size and Forecast 2023-2027

Remittance Market Forecast 2023-2027

The Remittance Market size is estimated to increase by USD 38.2 billion and grow at a CAGR of 10.55% between 2022 and 2027. Market expansion hinges on multiple factors, including technological progress, decreased remittance costs and transfer durations, and improved cash flow fostering business expansion. Challenges include the escalation of illicit financial flows, absence of standardization, and privacy and security apprehensions concerning digital remittance. Addressing these hurdles necessitates concerted efforts. Tackling illicit financial flows demands robust regulatory measures and heightened transparency. Standardization initiatives are imperative to streamline processes and ensure interoperability across platforms. Additionally, enhancing privacy and security protocols in digital remittance transactions requires innovative technological solutions and stringent compliance frameworks. Overcoming these challenges will foster a more conducive environment for market growth, facilitating smoother transactions and bolstering confidence among users. Ultimately, by surmounting these obstacles, the digital remittance sector can realize its full potential and continue to drive economic empowerment and financial inclusion on a global scale.

What will be the size of the Remittance Market During the Forecast Period?

Remittance Market Forecast 2023-2027

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Remittance Market Segmentation by Method, Type, and Geography

This report extensively covers market segmentation by method (non-digital and digital), type (inward and outward), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Method Segment Analysis: 

The non-digital will account for a major share of the market's growth during the forecast period. The non-digital segment accounted for the largest revenue share in the global remittance market in 2022. The non-digital method of remitting funds includes automated teller machines (ATMs) and cheques, among other methods. The consumer's sense of safety and security, which he or she has acquired during the transmission of funds via an offline channel, is one of the driving forces behind this segment's growth.

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The non-digital segment was valued at USD 32.02 billion in 2017 and continued to grow until 2021. Before the emergence of digital channels, traditional methods had always been the only options for sending money internationally and continue to have a major share in the global remittance market. The advantages of remittances related to non-digital are the availability of the service to both senders and recipients, flexible remittance channels, and fund accessibility to recipients. These factors will drive the growth of the non-digital segment of the global remittance market during the forecast period.   

Type Segment Analysis:

Based on type, the market has been segmented into Inward and Outward. The inward segment will account for the largest share of this segment. The inward type of remittance refers to the money received in the domestic bank account from a foreign bank account. One of the most commonly recognized links between economic progress and migration is inward remittances. Inward remittances are the protection against financial reversals for emerging countries. Inward remittance improves the gross domestic product of a country and per capita income. The key advantage of inward remittance is that the remitter can keep track of how and where their money is spent. In fact, remittances originating in foreign countries are of significant importance for the recordation of cross-border commercial transactions. These enhance the demand for inward remittance and, thereby, will drive the growth of the inward segment of the global remittance market during the forecast period.   

Regional Analysis

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North America is estimated to contribute 31% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The regional market in focus is expected to grow owing to high competition during the forecast period. In North America, several FinTech startups offering money transfers are coming up in Silicon Valley. Startups will drive businesses and upgrade payments in a world where firms are moving money to numerous individuals and small enterprises by improving their services through the use of Big Data and Analytics. This, in turn, will increase the demand for money transfer and currency exchange services during the forecast period, which are expected to drive the growth of the market in North America during the forecast period.

Market Dynamics and Customer Landscape

In today's globalized economy, the landscape of cross-border transactions and payments is shaped by various factors, especially impacting low-wage migrant workers and migratory communities. Digital transfer platforms and online transactions have revolutionized the process, making money transfers more accessible through electronic devices and mobile device usage. Digital remittance services offer speed and convenience, though concerns about financial security and anonymity persist. Mediators in the form of money transfer operators facilitate these transactions but may incur extra fees and paperwork burdens. Despite efforts by regulators to address issues like money laundering and terrorism funding, challenges such as transfer fees and a lack of knowledge among users remain. Overcoming security barriers and promoting awareness of digital payment options are crucial steps towards a more inclusive and efficient cross-border remittance market.  

Key Driver- Technological advancements are driving growth in the remittance market.

With the increasing digitization of bank products, the global remittance market has been strengthened. With improvements in technology, the banking sector is constantly striving to undertake contemporary advancements that might be a resource in streamlining daily banking offerings, including international money transactions. Realtime transaction information, which can be used to facilitate the growth of the market during the forecast period, is provided by key banking solutions, including online banking, ATMs, and phone banking that help banks and economic institutions reduce operating and management expenses while also allowing them to better manage their costs.

However, online money transfers made it easier for transferees to send funds to their families and business associates. One of the biggest strengths of technology is that it can be moulded to meet the requirements and preferences of people. Owing to such technological advancements, the market in focus is expected to witness growth during the forecast period.

Significant Trends- Government initiatives to promote online payment are a primary trend in the remittance market.

Several government initiatives to support the use of remittance services have taken place over the past few years across emerging countries. In India, the government has taken the Digital India initiative to promote digital payment methods. In February 2020, the Central Bank of Brazil announced the Brazilian Instant Payment Scheme (PIX). The scheme provides its users, companies, and government bodies the opportunity to send or receive payment transfers in a couple of seconds at all times, including during nonworking days.

The electronic payment system enables immediate transactions, such as money transfers and payments. In Brazil, all financial and payment institutions authorized by the Central Bank are required to use PIX. Such favorable initiatives taken by the governments of various emerging economies will drive the growth of the global remittance market during the forecast period.

Major Challenge- Rising illicit financial flows are a major challenge in the remittance market.

In the last few years, new forms of illicit finance have emerged as a major challenge to the world's remittance market.  Money illegally gained, moved, or utilized shall be a part of illegal financial flows. With the growing dependency on digital technologies, the information and communication networks facilitating illicit financial flows are rising as one of the key challenges.

In addition, digital technologies are facilitating organized cybercrimes, providing a number of opportunities for fraud, corruption, and tax evasion as well as various types of crime. Thus, rising illicit financial flows will hinder the growth of the global remittance market during the forecast period.

Who are the Major Remittance Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Bank of America Corp. - The company offers remittances such as outbound domestic wire transfers.

Citigroup Inc. - The company offers remittances such as Citi Bank inward remittances.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:

• Digital Wallet Co. Ltd.
• Euronet Worldwide Inc.
• Flywire Corp.
• JPMorgan Chase and Co.
• MoneyGram International Inc.
• Nium Pte. Ltd.
• OzForex Ltd.
• PayPal Holdings Inc.
• Ripple Labs Inc.
• SingX Pte Ltd.
• TransferGo Ltd.
• Wells Fargo and Co.
• Western Union Holdings Inc.
• Wise Payments Ltd.
• WorldRemit Ltd.
• ZEPZ

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Method Outlook
  • Non-digital
  • Digital

• Type Outlook
  • Inward
  • Outward

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

Market Analyst Overview

The Remittance Market is a vital component of the global economy, facilitating cross-border transactions and international remittances, particularly for migratory workers and low-wage migrant workers. Digital transfer platforms and online transactions have revolutionized the landscape, offering convenience and efficiency, driven by the widespread usage of electronic devices and mobile device usage. Digital remittance services ensure financial security while addressing concerns about anonymity and security barriers. However, challenges such as extra fees, paperwork, and money transfer costs persist, necessitating collaboration with regulators and compliance with anti-money laundering (AML) and know your customer (KYC) standards. The adoption of blockchain technology and real-time banking technology enhances transparency and expedites transactions, benefitting both financial organizations and customers. Ultimately, the remittance market continues to evolve, catering to the diverse needs of B2B clients and financial professionals through innovative money transfer fees, money transfer software, and digital payment solutions.

The global market plays a pivotal role in facilitating cross border transactions and cross border payments, catering to the needs of international residents and low wage migrant workers. Mediators, such as money transfer operators and online platforms, streamline the process, albeit amid concerns regarding money laundering and terrorism funding. The digital remittance business, powered by real time banking technology and Immediate Payment Service (IMPS), offers convenience and speed, although challenges like transfer fees and lack of knowledge persist. To mitigate risks, authorized regulators enforce anti money laundering (AML) measures, ensuring compliance across wire transfer services and electronic wallets. Embracing digital payments and mobile wallets, the remittance market strives for greater accessibility and transparency, bolstering financial inclusion and empowering migrant communities worldwide.

Remittance Market Scope
Report Coverage	Details
Page number	151
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 10.55%
Market growth 2023-2027	USD 38.2 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	9.51
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 31%
Key countries	US, Saudi Arabia, United Arab Emirates, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Bank of America Corp., Citigroup Inc., Digital Wallet Co. Ltd., Euronet Worldwide Inc., Flywire Corp., JPMorgan Chase and Co., MoneyGram International Inc., Nium Pte. Ltd., OzForex Ltd., PayPal Holdings Inc., Ripple Labs Inc., SingX Pte Ltd., TransferGo Ltd., Wells Fargo and Co., Western Union Holdings Inc., Wise Payments Ltd., WorldRemit Ltd., and ZEPZ
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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