The digital remittance market valued at USD 16,953.5 Million in 2021 and is anticipated to grow at a significant CAGR of 13.7% over 2022-2028. The market is growing because of an increase in mobile-based payment channels and cross-border transactions, as well as a decrease in remittance transfer time and cost. The expansion of the banking and financial sectors around the world is also fueling the remittance business. Furthermore, technical advances in the digital remittance market are projected to give profitable growth prospects. The rise of digital remittance is being driven by digitization, automation, lower remittance costs, transfer times, and the growing use of banking and financial services. Regulatory policies that encourage all financial institutions to become more open and cultivate stronger data and partner ecosystems also contribute to market expansion. The market has upside potential due to increasing access to financial services such as basic bank accounts and growing internet usage among remittance recipients. Terrorist financing and money laundering are two security concerns that could stymie the market’s growth potential throughout the projection period. Cross-border remittances provide numerous economic benefits, increase financial inclusion, and stimulate economic growth. Changing customer needs for cross-border remittances are necessary to speed market expansion during the forecast period. Digital money transfer services are becoming more popular among customers in low- and middle-income countries. Migrants’ and their families’ daily life. Based on type, the inward digital remittance segment is anticipated to witness significant growth over the projected period attributed to the increased use of mobile payment applications for money transfers in developed countries. Moreover, digital remittance service providers focus on offering fast and efficient fund transfers to the users, thereby creating several opportunities for the segment.
Recent Market Developments:
In Feb 2022, MoneyGram International, one of the biggest remittances players globally, has entered an agreement to be acquired by leading private equity firm Madison Dearborn Partners is a major development for the payments industry
In Jan 2020, PayPal Holdings, Inc. announced that it has completed its acquisition of Honey Science Corporation for approximately $4 billion in cash. This transaction will transform the shopping experience for PayPal’s consumers while increasing sales and customer engagement for its merchants.