The rise in cross-border remittances via digital platforms is expected to exponentially fuel the global digital remittance market's expansion, propelling its value past USD $64 billion by 2032, according to a report by Fact.MR. As per the firm's observations, the market was worth USD $18.16 billion in 2022, and the predicted annual compound growth rate (CAGR) of 13.5% for the decade will stimulate this threefold surge.
As per the GSM Association, increased reliance on mobile money for cross-border remittances, which tallied approximately USD $12.7 billion globally in 2020, is a significant factor fuelling this trend. The shift towards digital platforms for remittances is purportedly enticing customers with their ease of transactions, bypassing traditional money transfer methods known for hidden fees, intermediaries, and laborious paperwork.
In geographical terms, the Asia Pacific region is anticipated to be the fastest-growing market for digital remittance, a trend underpinned by the extensive volume of remittances it records annually. This involves remittances reaching the trillions of dollars routed to colleagues, family members, and business associates residing overseas by Asia-Pacific citizens.
Additional factors, such as the burgeoning adoption of banking and financial services, especially in China and India, and the regional thrust towards mobile banking, cashless payments, and mobile-based payment solutions, are expected to reinforce the market's growth significantly.
New market entrants and an expanding consumer base will give the Asia Pacific market a substantial competitive edge, paving the way for further growth opportunities. Over the forecast period, a projected CAGR of 13% for digital remittance services across the Asia Pacific region is expected.
The global digital remittance market comprises various segments, including inward digital remittance, outward digital remittance, digital remittance through banks, money transfer operators, online platforms, or other channels, and end uses (migrant labour workforce, personal digital remittance, small businesses, and other end uses).
As its competitive landscape unravels, the market will be influenced by strategic product innovation and mergers and acquisitions. WorldRemit's launching of its money transfer services in Malaysia in August 2021, which extends its capabilities of sending money from Malaysia and 50 other countries, including the U.S. and the U.K., to over 130 destinations, underlines the significance of these strategic moves.
Other significant market players include Azimo, Digital Wallet Corporation, InstaReM, MoneyGram, PayPal, Ria Financial Services, TransferGo, TransferWise, and Western Union.
This dynamic market analysis predicts that North America will command a 27% market share, while the Asia-Pacific will see a CAGR of 13% between 2022 and 2032. These findings are based on a study conducted by Fact.MR, renowned for its insightful industry reports.