Digital Remittance Market

Market Synopsis:

The Global Digital Remittance Market valued at USD 19.46 Billion in the year 2022 and is projected to reach a value of USD 57.49 Billion by the year 2030. The Global Market is projected to grow exhibiting a Compound Annual Growth Rate (CAGR) of 14.50% over the forecast period.

The cross-border transfer of money or payment of a bill or invoice between two or more parties via the internet is referred to as digital remittance. Fund transfers between citizens and non-residents, as well as earnings transfers from short-term workers in other nations to their home country, are common examples. In most cases, digital remittance, including both inbound and outbound remittance, is done through digital transfer networks like e-wallets and smartphone apps. Individuals' personal consumption, savings, and investments are regulated by banks, money transfer operators, and other financial institutions. The dynamics of the Digital Remittance sector is continuously changing due to technological advancements. Digitization can provide a number of advantages, including increased efficiency, convenience, transparency, accessibility, and lower transfer costs.

One of the primary drivers driving the market's favorable outlook is significant growth in the banking, financial services, and insurance (BFSI) business around the world. The market is benefiting from the increased adoption of digital and automated payment and money transfer solutions. To grow their business networks and deliver low remittance costs to their customers, financial institutions are using transparent and data-driven ecosystems for money transmission. There has been a considerable growth in demand for Digital Remittance solutions to effectively and swiftly transfer payments across regions. Various technological solutions, such as the use of real-time banking technology to utilize the Immediate Payment Service (IMPS), are also contributing to industry expansion. Other factors, such as rising consumer spending power, rapid urbanization, and industrialization, particularly in developing nations, are expected to propel the industry even further.

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Market Segmentation:

The Digital Remittance Market is segmented on the basis of Type, Channel and End Use. On the basis of Type, the market is segmented into Inward Digital Remittance and Outward Digital Remittance. On the basis of Channel, the market is segmented into Bank Transfer, Money Transfer Operators, Online Platforms and Others. On the basis of End Use, the market is segmented into Migrant Labor Workforce, Individual, Small Businesses and Others.

Based on Type:

The outward Digital Remittance segment led the market in 2021. People who live in other nations donate money to their families in their native countries. Financial institutions and banks are helping these people send money back to their relatives in a timely and secure manner. International banks and financial institutions are focusing their efforts on reducing fees and increasing their customer base. International remittances are processed through a secure banking network, lowering the risk of financial loss and fraud for both the sender and the recipient. The inbound Digital Remittance Market is estimated to grow at the fastest rate over the forecast period. The category is likely to grow over the forecast period as migrants' acceptance of mobile payment technology for money transfer grows.

Based on Channel:

In 2021, the money transfer operators’ market was the most dominant. Money transfer companies can frequently offer lower transfer fees than banks. Furthermore, these moneys transfer firms provide the same level of security and trustworthiness as banks. One of the key advantages supplied by money transfer operators is the quickness of the transaction. Money transfers can be started right away and completed in only a few days. Over the forecast period, the segment is likely to be driven by the advent of digital-first money transfer operators, as well as the quick adoption of funding and digital initiation capabilities from existing money transfer providers. Over the projected period, the fastest-growing segment is expected to be online platforms. Payment transfers between enterprises and between businesses and their clients are efficiently managed via online money transfer platforms. Customers have immediate access to money transactions through these platforms, which makes the fund transfer procedure more efficient.

North America Held the Largest Market Share in the Year 2021

North America acquired the largest market share during the year 2021 with a share of 27.2%. The region is home to a number of well-known financial services and communications firms. This is due to pursuit of better education and job possibilities, as well as for commercial reasons. Digital Remittance service providers in the region are likely to benefit from the growing number of immigrants in the region. Furthermore, as a result of the introduction of various payment applications, the trend of speedier money transmission has gained pace in the North American market. Over the projection period, an increase in competition from new entrants, combined with a growing customer base, is likely to generate growth prospects for the regional market.