Remittance Market To Predict Global Expansion At A CAGR Of 10.1% During 2022 To 2030

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.

Moreover, Conotoxia is also planning to offer fund transfers at 0% fees from the U.S. to Europe for new Trustly customers for up to USD 14 per transaction for a limited time. Such initiatives are expected to boost the industry’s growth.

A significant disadvantage of remittance is that it may encourage more labor migration because family members who receive remittances believe that they would be better off moving to developed countries and earning more money than remaining in their home country. In the long run, this can have a negative impact, commonly referred to as brain drain. As a result, the population composition has most people outside the labor market range or uneducated individuals.

However, compared to other forms of international financial transfers, remittances have a positive direct impact on recipients and should be encouraged by appropriate policies from the relevant governments.

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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

  • U.S.

  • Canada

• Europe

  • U.K.

  • Germany

  • France

  • Italy

  • Spain

• Asia Pacific

  • India

  • Philippines

  • China

  • Japan

  • Vietnam

• Latin America

  • Brazil

• Middle East & Africa

Order a free sample PDF of the Remittance Market Intelligence Study, published by Grand View Research.

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.