Digital Cross-Border Remittance Market Size, Share, Growth, And Industry Analysis By Type (Digital Remittance Service Provider, and Bank Digital Remittance) By Application (Personal and Corporate) Regional Forecast To 2031

Updated On: 08 April 2024

Digital Cross-Border Remittance Market Report Overview

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The global digital cross-border remittance market size was USD 5.95975 billion in 2022. Per our research, the market is expected to reach USD 45.20 billion in 2031, exhibiting a CAGR of 22.12% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to digital cross-border remittance market growth and demand returning to pre-pandemic levels once the pandemic is over. 

Digital cross-border remittances are electronic money transfers between two people or enterprises that are located in different countries. Digital remittances often take minutes or hours to process, as opposed to traditional wire transfers, which might take several days. These services are provided by a variety of businesses, including Xoom, WorldRemit, and TransferWise. These businesses might be a practical way to send money to relatives and friends abroad because they often have lower fees than traditional banks or money transfer agencies. Before sending your money, make sure to compare costs and fees for any digital cross-border remittance services you're thinking about employing. Additionally, you should confirm that the recipient has a bank account or mobile wallet that can accept payments.

Digital cross-border remittances can be divided into four primary categories: 1. Peer-to-peer (P2P) remittances: These are exchanges between two people that frequently take place online or using a mobile app. Typically, both the sender and the recipient have accounts with the same provider. 2. Business-to-consumer (B2C) remittances are exchanges between a company and a single consumer. They might be utilised for paying vendors or for payroll. 3. Consumer-to-business (C2B) remittances: These are exchanges between a customer and a company. They can be utilised for online bill paying and shopping. 4. Business-to-business (B2B) remittances are exchanges that take place between two companies. They can be used for things like international invoicing or supplier payments.

COVID-19 Impact: The Decrease in the Employment Opportunities, Travel Restrictions and Border Closures had Hampered the Market Growth

The industry for digital cross-border remittances has been significantly impacted by the Covid-19 epidemic. The global fall in work prospects brought on by the epidemic, as well as travel restrictions and border closures, are among the causes of the decline in remittances. Due to these issues, migrant workers now find it challenging to transfer money home to their relatives. Additionally, many nations have put in place severe lockdown measures, which have restricted people's access to banking services and money transfers. This has been especially difficult for migrants, who frequently use unofficial means to send money home. Remittances are a vital source of income for many families and communities around the world, so their loss will be felt greatly. As a result, the Covid-19 epidemic has had a significant effect on the global market, with far-reaching effects on families and communities.

Latest Trends

"The Most Quickest and Effective for Money Transfer Methods have Fueled the Market Expansion."

Digital cross-border remittances are becoming more and more well-liked as a quick and effective means of sending money abroad. These services are provided by a variety of businesses, and the competition among them is escalating. Customers deposit money from their bank accounts to the majority of these firms, who subsequently transfer the funds to the recipients' bank accounts. These businesses often demand significantly lower fees than do conventional money transfer businesses. TransferWise, WorldRemit, and Azimo are three of the most well-known firms in this market. These businesses have all amassed sizable customer bases by providing inexpensive costs and practical transfer choices. We can anticipate more innovation from these companies as the market expands. We can anticipate the introduction of new features and services as they continue to compete on fees and transfer times.

Digital Cross-Border Remittance Market Segmentation

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• By Type Analysis

According to type, the digital cross-border remittance market can be segmented into digital remittance service provider, and bank digital remittance. Among these, digital remittance service provider is projected to experience rapid growth through 2031.

• By Application Analysis

Based on application, the market can be divided into personal and corporate. Personal is expected to hold the largest digital cross-border remittance market share in the upcoming years.

Driving Factors

"The High Surge in Online Money Transfers and Mobile Banking Usage will Boost the Market Expansion"

Digital cross-border remittances have been on the rise over the last few years. This is partly attributable to the rising use of internet money transfer services, which have made sending money abroad simpler and quicker. The rise of market has been fueled by a number of causes, including: The growing acceptance of online transfer services for payment: Since they provide a quick and easy option to send money overseas, online money transfer services have grown in popularity in recent years. They are now a well-liked option for people and companies who need to move money abroad as a result.  The rise of mobile banking: Because mobile banking allows customers to transfer money using their mobile phones, it has also made it simpler to send money abroad. This has been an especially significant development in nations with limited access to traditional banking services.

"The Increase in Global Trade and Social Media Usage will Drive the Market Growth"

Social media usage is expanding, and prominent social media sites like Facebook and WhatsApp are now often used for international money transfers. This is due to the fact that they make it simple and quick for customers to send money to friends and family who live abroad. The expansion of international trade: The expansion of market is also a result of the expansion of international trade. This is due to the fact that companies frequently have to transmit payments to suppliers or customers who are situated abroad.

Restraining Factors

"The Lack of Awareness and Security Concerns May Impede the Market Growth "

The lack of public knowledge is one of the main factors limiting the market. People are frequently reluctant to use these transactions because they don't fully comprehend how they operate. The hefty expense of these kinds of transfers is another consideration. The costs can frequently be rather costly, which deters some people from using them. Then there is the matter of security. When moving money across borders, people frequently worry about the security of their funds.

Digital Cross-Border Remittance Market Regional Insights

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"U.S. to Dominate Market Owing to the Adoption of Modern Technologies"

Between 2022 and 2031, the swim school market will be dominated by the U.S. Factors driving the market growth in this region includes the high surge in online money transfers and mobile banking usate.

Additionally, the market is anticipated to experience the fastest growth in European and Asian countries (India, China, Japan, and South East Asia). The increase in global trade and social media usage also fuels the expansion of regional markets.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• NIUM, Inc (Instarem) (India)
• TransferGo (U.K.)
• PayPal/Xoom (U.S.)
• Flywire (U.S.)
• Remitly (U.S.)
• MoneyGram (U.S.)
• SingX (Singapore)
• Coins.ph (Philippines)
• Zepz (WorldRemit, Sendwave) (U.K.)
• FlyRemit (India)
• OrbitRemit (Australia)
• Azimo (U.K.)
• Intermex (U.S.)
• Smiles/Digital Wallet Corporation (Japan)
• Ria Financial Services (U.S.)
• Western Union (WU) (U.S.)
• TNG Financial Technology Group (Hong Kong)
• Small World (U.K.)
• Wise (U.K.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.