Global Remittance Market Insights and Forecast to 2028

Remittance Market Outlook 2028

The global remittance market size is estimated to be worth US$ 720 billion in 2022, and the is forecasted to reach US$ 850 billion by 2028, with a CAGR of 2.8% during the forecast period 2022-2028. Key drivers of the remittance market include the rise in mobile-based payments and increasing cross-border transactions.

Technological developments in digital remittances will fuel the growth of the remittance market during the forecast period. 

The proliferation of smartphones and the convenience offered by digital payments will positively impact the remittance industry trends. 

Remittance Market Trends

The popularity of mobile-based payments

People are increasingly moving to metropolitan regions for better job opportunities and education. This has increased the rate of cross-border transactions across the globe. Digital money transfer solutions via mobile apps are fast catching up with the mainstream overseas population. Contactless payments or mobile wallet systems save transaction time. It removes all the unnecessary intermediaries thereby bringing down the remittance costs. Moreover, money transfer software can reach potentially inaccessible areas and quickly improve the rate of financial inclusion. They track payments and build consumer trust by offering transparency. Anyone can send money online just with a single tap on their smartphone from anywhere in the world. NFC-based payment solutions are secure and encrypted thereby ensuring the safety of all the transaction history. Such factors will boost the growth of the remittance market during the forecast period. 

Technological innovations

Banking services have extended tremendously across the world. People are using financial services for a wide range of activities. Fintech technology is disrupting the global remittance market. The entire payment system is changing as the charging rates of sending remittances are gradually coming down with reduced turnaround time. Through automation, money transfers are being done instantly making the entire experience customer friendly. Remittances especially in developing countries are vital for sustenance. The long-standing roadblocks such as slow process and inconvenience are being removed. With the onset of the pandemic, the move toward digitization has been huge. Fintech solutions bring down operating costs through economies of scale. Mobile banking operators are partnering with payment companies to penetrate the regional markets easily. Cross-border transfers are no longer dependent on agents, forms, or codes. Blockchain and cryptocurrencies formed on distributed ledger systems make the money transfer cost-effective, efficient and faster than normal SWIFT transactions. Such sweeping changes will fuel the growth of the remittance market in the forthcoming years. 

Penetration of smartphones

The advent of the internet and cheaper prices of mobile phones has increased the use of digital platforms. Carrying and sending out cash can be a risky decision. However online money is safe, and secure through cross verification which eliminates the chances of fraudulent transactions. Frustrating long queues at bank branches are prevented completely. The whole transaction process is as seamless as it can be carried out anywhere without worrying about having any cash or not. A wide range of options is now available for sending out money on the go. Moreover, digital payments come with regular offers, cashback, discounts, and coupons which incentivize the general public. Going cashless during travel is the utmost beneficial feature. These factors will boost the growth of the remittance market in the subsequent years. 

Lack of awareness

Digital remittances run on the internet. Hence traceability becomes difficult. Criminals can send illegal money to different countries which increases the chances of financial crimes. Government and legal authorities find it difficult to track the money. However, since the money is digital hackers can break into the system for conducting fraudulent activities. There is also a lack of awareness amongst people. The majority of the population living in developing and underdeveloped countries are not aware of basic banking services. These factors are expected to hamper the development of the remittance market during the forecast period. 

Remittance Market Share Analysis

Based on type, the segmentations are bank money transfer services and money transfer apps. Bank money transfers are an electronic way to transfer money from one location to another. It is done through the SWIFT network protocol. They are quick, convenient, and safe. On the other hand money transfer apps also known as peer-to-peer transfer cash from one entity to another. It simplifies the entire payment mechanism by linking a digital wallet to a credit card, debit card, or bank account. Money is transferred electronically via a few taps into a mobile device. It is efficient and removes the need for unnecessary intermediaries. 

Based on application, personal remittances are expected to dominate in the remittance market share due to the growing number of immigrants traveling to other countries in search of better job opportunities and sending out money back to their native place. 

Based on region, the Asia-Pacific segment will witness considerable growth in the remittance market share owing to the growing number of migrants leaving their home countries, changing regulatory policies, and widescale adoption of digital remittance services. 

• Bank Money Transfer Services
• Money Transfer App
• Others

• Personal Remittances
• Business Remittances
• Public Services

• MoneyGram International Inc.
• Western Union Holdings, Inc.
• Euronet Worldwide, Inc.
• The Kroger Co.
• ABSA
• Banco Bradesco SA
• U.S. Bank
• Scotiabank
• Societe Generale
• UBA

• North America
• United States
• Canada
• Europe
• Germany
• France
• UK
• Italy
• Russia
• Nordic Countries
• Rest of Europe
• Asia-Pacific
• China
• Japan
• South Korea
• Southeast Asia
• India
• Australia
• Rest of Asia
• Latin America
• Mexico
• Brazil
• Rest of Latin America
• Middle East & Africa
• Turkey
• Saudi Arabia
• UAE
• Rest of MEA

Scope of the Remittance Market Report