Global Remittance Market by Type (Outward Remittance Market and Inward Remittance Market); by Channel Type(banks, Money Transfer Operators, Online Platforms, and others);by End User(Personal, Small Businesses, Migrant Labors and Others); and Region –Analysis of Market Size, Share & Trends for 2016 – 2019 and Forecasts to 2029

Market overview

The money transferred by the migrants to their families residing in their countries of origin is referred to as the remittance. The remittance market plays an important role in the world's economic development and livelihoods of people. In developing countries, cash inflows account for a large portion of their GDP. The demand relies slowly on the migrant population worldwide. Macro-economically, Remittance will raise overall demand and thereby drive both GDP and economic growth. The possibility of more sustainable remittance inflows is strong in countries with diversified migration.Nonetheless, research shows that remittance can also adversely affect the macroeconomic effect by increasing income inequality and reducing recipient labor supply.

Market Highlights

Fatpos Global anticipates the Remittance market to surpass USD XX Billion by 2030, which is valued at XX billion in 2019 at a compound annual growth rate of XX%. The increasing demand for free, reliable, and quicker cross-border monetary transactions can be attributed to market growth. Different businesses service customers and rely on products purchased from international suppliers. Also receive customer's payments and make payments to those suppliers, the need for digital remittance has increased.

Source: Fatpos Global

Recent Highlights in theRemittance market

• In April 2017, TransferWise Ltd. collaborated with DBS Bank to extend and enhance its presence in Singapore. Companies have shown their strategic advantage relative to other partnerships between conventional finance organizations and new financial technology firms.
• In September 2018, Remitly, Inc., a U.S.-based financial company, expanded its operations in 12 European countries. The new remittance functionalities and processes for many customers in the area have been introduced.

Remittance Market: Segments

Global market has been segmented on the basis of type, end user and by channel type. It has been further segmented on the basis of region into North America, Europe, Asia-Pacific, Mid East and Africa.

By type (in %), globalRemittance Market, 2019

Outward segment is anticipated to register XX% of the volume share and is expected to grow at a highest CAGR.

GlobalRemittance Market is segmented bytype into:Outward and inward

Customers prefer this way of exchanging money as it is quicker and easier. Furthermore, this digital remittance service offers security from exchange-rate volatility.

An increasing adoption of mobile payment technology is expected to boost growth in the inward remittance segment over the projected timeframe for fund transfer among migrants in developing countries.

By Channel (in %), global Remittance Market, 2019

Money transfer segment dominated the market in 2019 and accounted for XX% volume share

The global Remittance Market is segmented by channel type into: banks, Money Transfer Operators, Online Platforms, and others

Due to the growing proliferation of cellular applications and mobile banking, launched by financial institutions and money transfer operators, this money transfer operator segment held the largest share of the market. Moreover, in the international remittance industry digitization is expected to provide incumbent operators with growth opportunities.

By end-user (in %), globalRemittance Market, 2019

Personal segment accounted for XX% of the global volume in 2019 and is anticipated to grow at a highest CAGR.

Global Remittance market is segmented by end user:Personal, Small businesses, migrant labors and others

Owing to the large amount of funds transferred by the migrants studying abroad, the personal segment had the largest market share in 2019.The increased global penetration of smartphones and the Internet would further fuel growth in the segment during the forecast period.

Source: Fatpos Global

GlobalRemittance Market: Drivers and Restraints

Drivers

• Fast transfers and reduced cost

Adopting digital communication networks, such as mobile telephones, mobile currencies and digital ledgers to send money has made cross-border transfers cost-effective, easily auditable and feasible to everyone .Cross-border payment fees is negligible. The adoption of digital delivery is expected to reduce the dependency of both sending and receiving countries on cash agents that are currently contributing to the sustainment of high transaction costs.       

• Advantageous over traditional methods

Other threats, challenges and costs associated with KYC and compliance are addressed by digitally transferred remittance. Therefore, banks and money transfers are using digital technology to offer remittance much cheaper costs than traditional over-the-counter services which enhance digital transfers' penetration in the area.

• RisingInternet Penetration

Market growth is fueled by the growth of the Internet, mobile penetration and use of digital media to pay money has become a common feature in the Asia- Pacific region as customers remit money via digital channels.

Restraints

• Slow growth rate

The demand growth of the remittance industry is projected to be hampered by the lack of Awareness and decline in the growth of Asia Pacific countries.Other factors such as government regulation and de-risking practices may also restrict the growth of the market

Global Remittance Market: Regions

North America held the largest market accounting for XX% of total market volume share in 2019

Several people move to North America to find better employment, education and business opportunities which tend to drive regional demand growth. There are large companies such as Continental Exchange Solutions Inc., MoneyGram, and Western Union Holdings Inc. in the region to provide financial assistance. The rising number of immigrants from the underdeveloped parts of the world in North America has given a boost to regional demand growth.

Asia Pacific: China, Japan, India, and Rest of Asia Pacific
Europe: Germany, the UK, France, and Rest of Europe
North America: The US, Mexico, and Canada
Latin America: Brazil and Rest of Latin America
Middle East & Africa: GCC Countries and Rest of Middle East & Africa

Source: Fatpos Global

GlobalRemittance market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y

            Growth, CAGR – United States and Canada

• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y

            Growth, CAGR – Mexico, Argentina, Brazil and Rest of Latin America

• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth,

            CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium,

 Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia,

            Turkey and Rest of Europe

• APAC Market Size, Share, Trends, Opportunities, Y-o-Y Growth,

            CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New

            Zealand, Australia and Rest of APAC

• MENA Market Size, Share, Trends, Opportunities, Y-o-Y Growth,

            CAGR – North Africa, Israel, GCC, South Africa

GlobalRemittance Market: Key Players

• Bank of America
  • Company Overview
  • Business Strategy
  • Key Product Offerings
  • Financial Performance
  • Key Performance Indicators
  • Risk Analysis
  • Recent Development
  • Regional Presence
  • SWOT Analysis
• JPMorgan Chase & Co.
• RIA Financial Services Ltd.
• UAE Exchange
• Western Union Holdings Inc.
• Citigroup Inc.
• MoneyGram International Inc
•  TransferWise Ltd.
• Wells Fargo
• Xoom
• Other prominent players

The global Remittance market report also contains analysis on:

• Remittance  Market Segments:
  • Bytype:
    • Outward
    • inward
  • ByEnd user:            
    • Personal
    • Small businesses
    • migrant labors
    • Healthcare
    • Others

• By channel type:
  • banks
  • Money Transfer Operators
  • Online Platforms
  • Others

• Remittance  Market Dynamics
• Remittance  Market Size
• Supply & Demand
• Current Trends/Issues/Challenges
• Competition & Companies Involved in the Market
• Value Chain of the Market
• Market Drivers and Restraints