The global digital remittance market is anticipated to grow over the forecast period owing to the rising need for secure, safer, and faster cross-border monetary transactions. The increasing smartphone penetration, the rising number of digital-savvy customers opting for remittances, and the growing number of economic migrants migrating from developing economies to developed economies in search of better opportunities are also expected to contribute to the growth of the market.
Digital remittance is expected to emerge as the most preferred mode of remittance as financial institutions opt for transparency, a richer and data-driven ecosystem, and an efficient network of partners. The digital remittance market would continue to grow as service providers continue to expand the coverage of their internet networks, and more and more people, particularly in the developing economies, get access to banking and financial services. However, lack of awareness and proper guidance are expected to restrain the growth of the market.
The global digital remittance market has been segmented into the channel, type, end use, and region. Based on channel, the market has been further segmented into money transfer operators, banks, online platforms, and others. Money transfer operator is anticipated to hold the largest market share owing to the rising adoption of mobile banking and mobile-based apps, which are introduced by financial institutions and money transfer operators. Also, banks segment is expected to witness significant growth owing to increasing strategic collaborations between banks and the digital payment service providers.
Based on type, the market has been further segmented into outward digital remittance and inward digital remittance. The inward remittance segment is anticipated to grow at a higher rate owing to the rising adoption of mobile payment technology for fund transfer among the migrants in the developed countries. Inward remittance enables safe, secure, and quick transactions along with advisory services to the customers.
On the basis of end use, digital remittance has been further segmented into small businesses, migrant labor workforce, personal or individuals, and others. The personal or individuals segment is anticipated to hold the largest market share owing to a large number of fund transfers conducted by the migrants that are studying overseas.
On the basis of region, the market has been further segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East and Africa. The North American regional market dominated the global digital remittance market in 2018. While several people migrate to North America in search of better opportunities and education as well as for businesses purposes; the region is also home to major communication and financial service companies, such as MoneyGram, Western Union Holdings, Inc., and Continental Exchange Solutions, Inc. among others.
The European regional digital remittance market is anticipated to grow at a steady rate due to the rising adoption of digital remittance solutions across various industries, including banking, automobile, and healthcare, among others. Moreover, the announcement by Remitly, a financial company based in the U.S., to expand its operations in 12 European countries would bring the modern remittance processes and functionalities to several customers in Europe, thereby contributing to the growth of the European regional market.
Some of the key players in the global digital remittance market include MoneyGram, Azimo Ltd., Arcus Financial Intelligence, Inc., Ripple, Mobetize, Transfer Wise Ltd, Currency cloud, Avenues India Private Limited, Western Union Holdings, Inc., PayPal Holdings Inc., TNG Ltd, InstaRem PTE limited, and coins. Ph Pte. Limited.
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