Download Sample, Increasing Migrant Population is Stimulating Digital Remittance Growth
The demand for digital remittance is increasing due to the global adoption of smartphones and internet connectivity. Digital remittance is quickly accessible and convenient to users, by making it easier for transactions. The demand for digital remittance is driven as consumers are using digital remittance more frequently than traditional banks. Furthermore, individuals across the world are shifting toward digital remittance services as they help reduce remittance and money transfer time. The rising adoption of digital payments is creating growth opportunities for the market over the forecast period.
Further, according to the United Nations Network on Migration, the remittance in recent years to low- and middle-income countries exceeded US$ 647 billion and is projected to rise over US$ 656 billion. Moreover, every one to two months migrant workers send money to the families on average US$ 200 to US$ 300. Money transactions through mobile transfer have been increased by 65% to US$ 12.7 billion, this migration influences digital remittance.
Further, according to the United Nations Network on Migration, the remittance in recent years to low- and middle-income countries exceeded US$ 647 billion and is projected to rise over US$ 656 billion. Moreover, every one to two months migrant workers send money to the families on average US$ 200 to US$ 300. Money transactions through mobile transfer have been increased by 65% to US$ 12.7 billion, this migration influences digital remittance.
Increasing Advancement in Digital Payment Technology and Fintech is Providing Traction in the Market
Increasing advancements in digital payment technology and fintech (financial technology) are driving market growth. Tailored solutions like instant payment systems, blockchain, and mobile wallets have made money transfers easier and faster over the globe. These technologies allow real-time tracking, secure and quicker transactions,s and flawless integration with existing financial systems.
Furthermore, digital remittance offers lower exchange rates and transfer fees, which makes it more affordable for users of digital remittances to transfer money internationally. This cost efficiency benefits the sender maximizing the value of the transfer and increasing financial involvement by making remittance services available to a broader population. Moreover, the demand for digital remittance has increased as it is a more convenient mode to transfer money to customers. Rather than the traditional method which requires physical visits to money transfer agents and banks, this provides users with instant processing and 24/7 accessibility. Digital remittance services often combine seamlessly with active digital payment methods and further, it increases user satisfaction and convenience.
Furthermore, digital remittance offers lower exchange rates and transfer fees, which makes it more affordable for users of digital remittances to transfer money internationally. This cost efficiency benefits the sender maximizing the value of the transfer and increasing financial involvement by making remittance services available to a broader population. Moreover, the demand for digital remittance has increased as it is a more convenient mode to transfer money to customers. Rather than the traditional method which requires physical visits to money transfer agents and banks, this provides users with instant processing and 24/7 accessibility. Digital remittance services often combine seamlessly with active digital payment methods and further, it increases user satisfaction and convenience.
Recent Trends in the Digital Remittance Industry:
- Collaboration with fintech start-ups to innovate service offerings.
- Enhance the adoption of AI and ML for the detection of fraud.
- Development of instant money transfer option to meet user's demand.
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Fluctuation in Exchange Rate and Security Concern are Key Challenges to the Market Expansion
The growth of the digital remittance market is affected by various features such as fluctuation in exchange rates, which acts as a major challenge to the expansion of the market. The value of currencies can fluctuate within seconds and that will have a direct impact on the amount received by the recipient. Furthermore, digital remittance services have limited access in particular countries, which can pose an important challenge for the users.
For instance, in remote areas where digital literacy is low and has insufficient internet connectivity, using digital remittance services can be impossible or it may be a difficulty. Additionally, the key factor that affects the growth of the digital remittance market is the concern of data security and fraud, inadequate password protection, and weak authentication measures which may make the system vulnerable to unauthorized access. While using a digital remittance for transactions, payment data may be tracked and this leads to privacy concerns about the security of personal information stored digitally.
For instance, in remote areas where digital literacy is low and has insufficient internet connectivity, using digital remittance services can be impossible or it may be a difficulty. Additionally, the key factor that affects the growth of the digital remittance market is the concern of data security and fraud, inadequate password protection, and weak authentication measures which may make the system vulnerable to unauthorized access. While using a digital remittance for transactions, payment data may be tracked and this leads to privacy concerns about the security of personal information stored digitally.
New Product Launches Present Lucrative Growth Opportunities for the Market Expansion
Major market participants are concentrating their efforts on research and development in order to manufacture products that meet the demands of their customers. They also explore various market strategies, such as mergers, technological advancements, and acquisitions, to get a competitive advantage in the global market. For example, in August 2023, Airtel Africa collaborated with Mastercard to launch a new remittance transfer service to benefit 100 million mobile phone users in 14 African countries. Furthermore, in April 2021, Travelex a foreign exchange brand had a partnership with Nium the advanced global payments platform to increase digital remittance services to customers.
Some of the key players operation in digital remittance market are TransferGo Ltd., Ria Financial Services, InstaReM Pvt. Ltd., Western Union Holdings, Inc., TransferWise Ltd., WorldRemit, Wise Payments Limited, MoneyGram., Azimo Ltd., Ria Financial Services Ltd., PayPal Holdings Inc., Digital Wallet Inc., Nium Pte. Ltd., Bank of America, and UAE Exchange, Citi Group.
Some of the key players operation in digital remittance market are TransferGo Ltd., Ria Financial Services, InstaReM Pvt. Ltd., Western Union Holdings, Inc., TransferWise Ltd., WorldRemit, Wise Payments Limited, MoneyGram., Azimo Ltd., Ria Financial Services Ltd., PayPal Holdings Inc., Digital Wallet Inc., Nium Pte. Ltd., Bank of America, and UAE Exchange, Citi Group.
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Lower Exchange Rate and Faster Payment Transaction is influencing the Market Development
North America is expected to witness substantial growth in the digital remittance market owing to the integration of increasing innovation in digital remittance services and the availability of the internet, for online payment transfer and other services. This digital remittance method has a lower exchange rate and faster payment transactions compared to the traditional method, which is implementing the growth of the market. On the other hand, in Europe, the digital remittance market is witnessing growth in demand, due to the changing consumer preference towards online services.
As digital remittance provides a safer and more secure way of payment to the user by providing tracking expense history, it is increasing the growth of the market in this region. Asia Pacific is also anticipated to experience significant growth in the digital remittance market during the forecast period. This growth can be attributed to the rising demand for bthe enefits of this system among consumers. In addition to this, the increasing contactless payments is boosting market growth. Moreover, the shift towards digitalization is also influencing the market growth.
As digital remittance provides a safer and more secure way of payment to the user by providing tracking expense history, it is increasing the growth of the market in this region. Asia Pacific is also anticipated to experience significant growth in the digital remittance market during the forecast period. This growth can be attributed to the rising demand for bthe enefits of this system among consumers. In addition to this, the increasing contactless payments is boosting market growth. Moreover, the shift towards digitalization is also influencing the market growth.
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The report provides a detailed overview of the digital remittance market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for digital remittance market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the digital remittance market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the digital remittance market. Some key country and region included in the digital remittance market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Luxembourg, Ireland, Finland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Israel, Kenya, Rest of MEA |
Digital Remittance Market Research Report Covers In-depth Analysis on:
- Digital remittance market detailed segments and segment-wise market breakdown
- Digital remittance market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in digital remittance industry)
- Current, historical and forthcoming 10 years market valuation in terms of digital remittance market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Digital remittance market demand analysis
- Digital remittance market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in digital remittance market
- Regulatory landscape by key regions and key countries
- Digital remittance market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on digital remittance market forecast by countries
- Mergers and acquisitions in digital remittance market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
Why should market players invest in the digital remittance market?
Investing in the Digital Remittance market offers access to rapidly growing demand, evolving consumer preferences, and technological advancements, presenting substantial opportunities for innovation and profitability.
How does the report benefit stakeholders in the digital remittance market?
The report offers stakeholders actionable insights, competitive intelligence, and market forecasts, enabling data-driven decision-making to optimize market positioning and achieve sustainable growth.
What are the challenges faced by the digital remittance market?
The market encounters challenges such as regulatory complexities, cybersecurity risks, and limited digital access in underdeveloped regions, impacting market expansion potential.
Does the report include the impact of technology on the digital remittance market?
Yes, the report highlights technological advancements such as blockchain integration, AI-powered analytics, and mobile payment innovations that are reshaping the Digital Remittance market landscape.
