Digital Remittance Market

Digital Remittance Market Outlook (2024 to 2034)

Total revenue from the global digital remittance market is forecast at US$ 23.4 billion in 2024. The market has been projected to rise swiftly at a CAGR of 13.5% and reach a value of US$ 83.2 billion by the end of 2034.

Digital remittance services gained more importance during the COVID-19 pandemic. Restrictions on travel and public movement led to a reduced frequency of customer visits to banks and other financial institutions for remitting money. People began to increasingly rely on digital payment methods to conduct various transactions.

An increasing number of cross-border transactions and the growing adoption of mobile-based payment channels are expected to boost the digital remittance market growth over the forecast period. Migrant workers widely use digital remittance services to transfer funds to their families.

Money transfer operators are regularly able to provide lower transfer costs than banks. Moreover, these money transfer companies offer the same level of reliability and security as banks. The speed of the money transaction is one of the significant benefits offered by money transfer operators. Money transfers can be initiated immediately and processed within a day or two. The introduction of digital-first money transfer operators and the rapid introduction of funding and digital initiation capabilities from established money transfer operators are expected to drive the demand for digital remittance services during the forecast period.

Online platforms are expected to register high growth over the forecast period. Online money transfer platforms efficiently manage transfers of funds between organizations as well as organizations and their customers. These platforms allow users to have access to money transactions directly and execute the fund transfer process more easily.

Several online money transfer platforms are focusing on offering user-friendly services to their clients. These platforms are helping clients navigate their sites easily. Furthermore, the increasing adoption of digital wallets is expected to accentuate the growth of the online money transfer service market. Digital wallets enable customers to directly track their funds from their digital wallet application.

• The North American digital remittance market size is calculated at US$ 5.9 billion in 2024.
• East Asia is projected to account for 26% of the global digital remittance market share by 2034.

Report Attribute	Detail
Digital Remittance Market Size (2024E)	US$ 23.4 Billion
Forecasted Market Value (2034F)	US$ 83.2 Billion
Global Market Growth Rate (2024 to 2034)	13.5% CAGR
South Korea Market Value (2034F)	US$ 5 Billion
Inward Digital Remittance Demand Growth (2024 to 2034)	14.2% CAGR
Key Companies Profiled	Azimo Limited; WorldRemit Ltd.; Remitly; InstaReM Pvt. Ltd.; MoneyGram; Paytm; OFX; Digital Wallet Corporation; PayPal Holdings, Inc.; Ria Financial Services Ltd.; Pangea Money Transfer; OrbitRemit; TransferGo Ltd.; Western Union Holdings Inc.; CurrencyFair; Remitbee; Transfast.

Why are Digital Remittance Platforms Gaining Widespread Popularity?

“Proliferation of Digital Payment Platforms Increasing Profits of Digital Remittance Service Providers”

The proliferation of the digital platform for remittance is expected to encourage customers to move toward online transactions. Moreover, the rising penetration of mobile devices across the globe is encouraging the adoption of digital technologies in remittance services and cross-border payments.

Customers across the globe are also shifting toward digital remittance services as they help reduce the money transfer time and remittance costs. Moreover, digital remittance services offer high privacy and protection for consumers’ money.

Endless chains of mediators, hidden charges, and paperwork involved in money transfers made the process costly and arduous. However, the adoption of digital remittance services is helping businesses and customers enjoy more affordable, faster, and value-added money transfer services. The costs involved in transferring funds are not too high due to the healthier competition between market players. The rising popularity of digital remittance services among low-wage migrant workers, who use these services to send money to their families, is compelling several governing bodies to pay attention to and regulate the digital remittance market.

Foreign remittances play an important role in the economic development of emerging markets. Due to this, authorized regulators control and monitor money transfer fees to encourage customers to continue using digital remittance services and effectively contribute to their home country’s economic growth.

What is Hampering Adoption of Digital Remittance Technologies?

“Lack of Awareness in Some Regions and Certain Cyber Security Concerns”

Ease of digital payments is set to offer high-growth opportunities for the digital remittance service providers. However, the lack of awareness about digital remittance services and fluctuating remittance prices are expected to hinder the overall market growth to some extent. Moreover, security hindrances such as terrorist financing and money laundering could negatively impact the growth prospects of the digital remittance market over the forecast period.

Start-up Ecosystem

• KrillPay is an Untied States Based start-up that offers a mobile-based payment platform for sending money anywhere across the globe. The company’s platform uses blockchain technology to ensure safe and secure fund transfer. Customers can link their bank accounts directly to KrillPay wallets for instant fund transfers. An additional level of security is also offered through biometric authentication.
• A Brazilian start-up Emigro offers digital wallet system for instant fund transfer. Travellers, international students, or digital nomads can make use of this platform for easy and secure digital payments in Brazil.
• Based in Qatar SkipCash is offering a secure digital payment solution to facilitate an easy business transaction experience. The company’s platform provides payment functionalities such as payment links, QR codes, payment gateway, and a tap-to-phone feature.

Country-wise Analysis

What is the Demand Outlook for Digital Remittance Solutions in the United States?

“Country Benefits from Strong Presence of Fintech Companies”

Attribute	United States
Market Value (2024E)	US$ 2.6 Billion
Growth Rate (2024 to 2034)	13.3% CAGR
Projected Value (2034F)	US$ 9.1 Billion

The United States is home to prominent financial service and communication companies, such as Continental Exchange Solutions, Inc., Western Union Holdings, Inc., and MoneyGram. Majority of people migrate to the United States in search of better education and job opportunities as well as for business purposes.

The rising number of immigrants in the country is expected to create high-growth opportunities for the digital remittance service providers. Furthermore, the notable digital remittance market trend of faster money transfer is driving the high demand for advanced payment applications.

What is Boosting Adoption of Digital Remittance Solutions in South Korea?

“Rising Need for Instant Fund Transfer Driving Use of Digital Transaction Monitoring and Management Solutions”

Attribute	South Korea
Market Value (2024E)	US$ 1.2 Billion
Growth Rate (2024 to 2034)	15.4 % CAGR
Projected Value (2034F)	US$ 5 Billion

South Korea is emerging as the fastest-growing market in the East Asia region. The majority of citizens in South Korea transfer funds through digital remittance platforms yearly to colleagues business partners and families in foreign countries. An increase in the adoption of online banking and financial services in the country is expected to propel the demand for digital remittance services in South Korea. Koreans growing focus on the adoption of mobile banking, cashless payments, and mobile-based payment solutions is also influencing the digital remittance market growth.

Category-wise Analysis

Who is the Key End User of Digital Remittance Platforms?

“Digital Remittance Solutions Exhibiting High Personal Use”

Attribute	Personal
Segment Value (2024E)	US$ 9.8 Billion
Growth Rate (2024 to 2034)	12.4% CAGR
Projected Value (2034F)	US$ 31.6 Billion

Personal digital remittance services are expected to lead the market in 2024 by capturing a share of 42% of global revenue. New products and services are being widely developed to facilitate convenient usage of financial customer accounts. The increasing global migration is expected to drive the adoption of digital remittance services by personnel to send money to their home country.

Growing smartphone adoption and internet penetration across the globe are anticipated to propel the personal use of digital fund transfer platforms during the forecast period. Innovative solutions are already beginning to change the landscape of remittance services by increasing convenience and reducing costs for senders of remittances and their families.

The use of digital remittance platforms by the migrant labor workforce segment is also expected to witness significant growth over the forecast period. The digital remittance service helps the migrant labor workforce to compare fund transfer costs and effectively locate support organizations. Moreover, this service is making it easier and more affordable for migrant workers to send money home. Integration of AI and automation in banking and cross-border payment transactions are further driving the digital remittance market share.

Which Type of Digital Remittance Accounts for Higher Revenue Generation?

“Outward Digital Remittance Services Are Popular Due to High Number of International Transactions”

Attribute	Outward Digital Remittance Services
Segment Value (2024E)	US$ 12.9 Billion
Growth Rate (2024 to 2034)	12.9% CAGR
Projected Value (2034F)	US$ 43.3 Billion

People living in other countries are sending money home to support their families. Financial institutions and banks are helping these people send money home quickly and safely. International banks and financial institutions are focusing on charging low fees and increasing their customer network. International outward remittances are done on a safe banking network, thereby limiting the chances of financial harm and fraud to both the sender and the recipient.

Furthermore, the increasing adoption of mobile payment technologies for money transfer among the migrants is anticipated to boost the demand for inward digital remittance services. Numerous financial institutions and banks across the globe are focusing on adopting real-time banking technologies to leverage Immediate Payment Service (IMPS).

This technology enables banks to offer services to both non-resident and resident customers of the banks. Migrant workers are focusing on using wire transfer services for inward remittances as these services are considered the safest, fastest, and most popular modes of fund transfer.

Competitive Landscape

Key players in the digital remittance industry are adopting tactics such as product innovation and strategic mergers & acquisitions. Front Runners are emphasizing capacity enhancements and global footprint expansion to leverage lucrative prospects in developing economies.

• February 2024 witnessed the acquisition of International Money Transfer Service, Company of Seven-Eleven Group Japan by Digital Wallet Corporation.
• In August 2021, WorldRemit Ltd. launched its money transfer services in Malaysia, allowing WorldRemit users to send money from Malaysia, in addition to 50 other countries, including the United States and the United Kingdom to more than 130 destinations. Based on their location, users can choose from numerous payout methods for the recipient, including payments to mobile wallets, bank deposits, mobile airtime top-ups, and cash pick-ups.

Fact.MR provides detailed information about the price points of key providers of digital remittance services positioned across the world, sales growth, production capacity, and speculative technological expansion in the recently updated market report.

Key Segments of Digital Remittance Market Research

• By Type :

  • Inward
  • Outward

• By Channel :

  • Banks
  • Money Transfer Operators
  • Online Platforms

• By End Use :

  • Migrant Labor Workforce
  • Personal
  • Small Businesses
  • Others

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa