Digital Money Transfer And Remittance Market Size, Share, Growth, and Industry Analysis, By Type (Digital Money Transfer Operators, Banks Digital Remittance), By Application (Personal Customers, Micro and Small Businesses) and Regional Insights and Forecast to 2031

Updated On: 22 April 2024

DIGITAL MONEY TRANSFER AND REMITTANCE MARKET REPORT OVERVIEW

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The global digital money transfer and remittance market size was USD 6195.3 million in 2021 and will touch USD 19790 million by 2028, at CAGR of 18.1% during the forecast period.

The digital money transfer market involves the use of digital advances in the financial sector to facilitate the seamless transfer of funds across international borders. It refers to the electronic transfer of funds between countries mainly through online platforms or mobile applications that offer incomparable convenience, speed and cost-effectiveness compared to traditional channels.

The growth of mobile payment channels and cross-border transactions, as well as the reduction of transfer time and cost of remittances, will lead to market growth. In addition, the spread of banking and financial sectors in different parts of the world is contributing to the growth of the remittance market. However, the rise in financial crimes and lack of awareness about digital money transfers are expected to hamper the growth of the market. In addition, technological advancements in the digital remittance market are expected to provide lucrative opportunities for market growth.

COVID-19 Impact: Reducing Employment Limits, Travel Limits And Border Breaking To Challenge Market Growth  

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The Covid-19 pandemic has significantly affected the cross-border digital money transfer industry. The global deterioration of job prospects due to the epidemic, travel restrictions and border closures are among the reasons for the decline in remittances. Because of these problems, it is currently difficult for migrant workers to send money home to their relatives. In addition, many countries have imposed strict lockdown measures that have restricted people; access to banking services and money transfers. This was particularly difficult for immigrants, who often use informal means   send money home Remittances are a vital source of income for many families and communities around the world, so their loss is deeply felt. As a result, the Covid-19 pandemic has had a major impact on global markets, with far-reaching effects on families and communities.

LATEST TRENDS

"Globalization And International Migration Foster Market Growth"

Globalization and the growth of international migration play a key role in driving the digital remittance market and its expansion. First, the ongoing process of globalization encourages cross-border financial communication and global trade, which increases the demand for efficient and cost-effective cross-border money transfer solutions. Digital money transfer services meet this need by providing faster, easier to use and often more affordable ways to transfer funds internationally that fit seamlessly into the interconnectedness of today's global business. Second, the growth of international migration has increased the diaspora of people living and working abroad, many of whom regularly send financial support to their families and networks back home.

DIGITAL MONEY TRANSFER AND REMITTANCE MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into Digital Money Transfer Operators, Banks Digital Remittance.

Transferring money from one country to another using digital platforms, including mobile apps or online banking for various purposes, such as international business, educational expenses, medical treatment and family support, is called a foreign digital money transfer.

Bank Digital remittance describes foreign workers sending money home electronically. This can happen through a number of different channels, whether online or via mobile.

• By End User

Based on application the global market can be categorized into Personal Customers, Micro and Small Businesses.

In the context of digital money transfers, the personal segment includes individual users sending money to family members, friends or for personal expenses. This segment dominates the market due to the large volume of regular personal transactions. This is often due to factors such as international migration, education and financial support for loved ones.

According to the Small Business Association, a micro business is a small business that employs fewer than 10 people, small businesses can include companies with up to 500 employees.

DRIVING FACTORS

"Spread Of Smartphones And Internet Connections Will Boost The Market Growth"

The widespread use of smartphones and the availability of affordable internet connectivity have significantly influenced the growth of the digital money transfer market. As more and more people gain access to smartphones and the Internet, they can use digital platforms and mobile apps for money transfers, including remittances. The convenience and accessibility offered by these technologies has encouraged people to opt for digital money transfer solutions, which has led to the expansion of the market.

"Technological development of digital money transfers augment market growth "

The banking industry is increasingly focused on using a number of technological advances to simplify everyday banking services such as international money transfers. Key banking solutions include online banking, ATMs and telephone banking, which enable banks and financial institutions to minimize operational and control costs and provide real-time transaction information.   In addition, money transfers on the Internet have increased among customers, as money transfers have made it easier to transfer money to their family and business contacts. The main advantage of this technology is that it is designed according to the requirements of the customer. Consequently, such factors are expected to drive the digital money transfer and remittance market growth during the forecast period.

RESTRAINING FACTORS

"Cyber ​​Security Risks Can Hinder Market Growth"

Cybersecurity risks are significantly limiting the market and growth of digital remittances. Because these services handle sensitive financial data and transactions, they become prime targets for cybercriminals looking to exploit vulnerabilities. Security breaches, data theft or fraud can undermine users' trust in digital money transfer platforms. Such incidents not only cause financial loss to users, but also damage the reputation of service providers and hinder market growth.   To mitigate these risks, digital remittance companies must devote significant resources to cybersecurity measures, including encryption, multi-factor authentication, and continuous monitoring. These investments increase operating costs and can reduce profit margins, affecting the competitiveness of digital money transfer services. In addition, regulatory bodies are increasingly demanding strict cybersecurity compliance, which requires constant adaptation and investment to meet evolving standards. Failure to comply with these regulations can lead to legal challenges and penalties, further limiting market growth. Overall, the ongoing and evolving nature of cyber security threats poses a significant challenge to the digital remittance market and its expansion and sustainability.

DIGITAL MONEY TRANSFER AND REMITTANCE MARKET REGIONAL INSIGHTS

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"North America Dominating The Market Due To Adoption Of Compatible Devices And Viable Networks"

The market is primarily segmented into Europe, Latin America, Asia Pacific, North America and Middle East and Africa.

North America accounted for the largest digital money transfer and remittance market share and is expected to grow at a CAGR during the forecast period. The adoption of compatible devices and viable networks will significantly contribute to the growth of the digital broadcasting market in North America. The increase in the number of immigrants in the region is expected to create growth opportunities for digital money transfer service providers in the region. In addition, faster money transfer has gained momentum in the North American region with many payment requests.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

Major players in the market collaborate with other companies to stay ahead of the competition. Many companies also invest in new product launches to expand their product range. Mergers and acquisitions are also one of the key strategies used by players to expand their product portfolio. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Western Union (WU) (U.S.)
• Ria Financial Services (Euronet) (U.S.)
• PayPal/Xoom (U.S.)
• Wise (U.K.)
• MoneyGram (U.S.)
• Remitly (U.S.)
• Azimo  (U.K.)
• TransferGo (U.K.)
• NIUM, Inc (Instarem) (India)
• TNG FinTech (Hong Kong)
• OrbitRemit (Australia)
• Smiles/Digital Wallet Corporation (Japan)
• Flywire (U.S.)
• Intermex (U.S.)
• Small World (U.K.)

INDUSTRIAL DEVELOPMENT

August 2021: WorldRemit Ltd. launched its money transfer service in Malaysia, allowing WorldRemit users to send money from Malaysia to more than 130 destinations in addition to 50 other countries, including the US and UK.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.