Increasing Cross-Border Transactions Is Propelling The Digital Remittance Market

The digital remittance market is anticipated to grow at a CAGR of 15.9% during the forecast period (2024-2031). The market growth is driven by the increasing fund transfers from migrant workers to their families, the increasing number of cross-border transactions, and the growing adoption of mobile-based payment channels. Additionally, the shift of global customers toward digital remittance services, owing to the reduced money transfer time and remittance costs and high privacy and protection for consumers’ money, is driving the market growth during the forecast period.  The ease of access to services, based on the location, users can choose from numerous payout methods for the recipient, including payments to mobile wallets, bank deposits, mobile airtime top-up, and cash pick-up, which are contributing to the market growth.  

The global digital remittance market is segmented by type (inward digital remittance and outward digital remittance), by distribution channel (banks, money transfer operators, online platform, and other channels), and by end user (business, and personal), and by geography (into North America, Europe, Asia-Pacific, and the Rest of the World). 

Market Dynamics

• The online platform segment is anticipated to register significant growth owing to the increasing adoption of digital wallets across the globe. 

• The inward digital remittance segment is anticipated to register a significant growth, owing to the increasing adoption of mobile payment technology for money transfer among migrants. Additionally, the increasing use of wire transfer services for inward remittance owing to its safest, fastest, and most popular mode of transfer properties, and offers by various key vendors, is contributing to the segment growth. 

• North America is anticipated to have a significant growth during the forecast period owing to the presence of well-established banking and financial institutions, in the region, such as Truist Financial, Bank of America, and US Bancorp that adopt various technological solutions.

• The prevalence of advanced technologies such as, introduction of real-time banking for faster funds transfer, lower costs than traditional money transfer services is driving the North American market. 

• The Asia Pacific regional market is anticipated to emerge as the fastest-growing region, owing to the adoption of banking and financial services in emerging economies such as China and India, and increased focus on the adoption of mobile banking, cashless payments, and mobile-based payment solutions. 

The major companies serving the global digital remittance market include MoneyGram International, Inc., PayPal, Remitly Inc., Western Union Holding Inc., Digital Wallet Corp., Flywireand others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches. 

Recent Development 

• In June 2024, Ventia has partnered with Microsoft to develop Ventia’s document library for information around policies, internal standards, compliance, and operating procedures. The GenAI solution is internally known as Polli, and handles employee requests quickly and efficiently.  

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