Global Digital Money Transfer & Remittances Market - 2020-2027
Digital money transfer and remittances refer to the sending the money to another person with the help of the digital platforms. These are the transparent and data-driven ecosystem for providing the monetary transactions. The digital money transfer and remittances are the ideal platforms for the companies to receive payments from customers and make payments to suppliers. The global digital money transfer & remittances market valued USD XX million in 2018 and it is expected to grow at a CAGR of XX% to reach USD XX million by 2026.
The market is driven by the increasing demand for the digital money transfer & remittance services with the growing need for safer, secure, and quicker cross-border monetary transactions. There is increase in the number of the businesses serving the customers from other countries and relying on the procuring goods from suppliers abroad. There is growing penetration of the smartphones with the increasing number of digital-savvy customers for digital money transfer & remittances. There is growing usage of the POS systems in the various industries such as retail, restaurants, healthcare, transportation, ecommerce, and others. The increase in the number of the campaigns regarding the digitalization shall stimulate the market.
The increasing cross-border transactions as the people are moving to the various countries in search for the education or jobs. The growing industrialization and urbanization have attracted the large number of people of the different semi-rural and rural areas towards the urban parts of the world.
There is increase in the launch of the digital money transfer & remittance services. For instance, in February 2020, Paysend had launch of its money transfer services in Australia. Paysend's services would be used in the $1.3 trillion economy to send funds to companies located abroad. Paysend's services would be used in the $1.3 trillion economy to send funds to companies located abroad.
In November 2019, Azimo, London-based money transfer service had launched its new Dutch subsidiary Azimo BV for creating a separate operations hub for the management of transfers sent from outside the United Kingdom. The move marks the anticipation of Brexit amongst FinTechs in the United Kingdom.
However, the lack of the awareness and guidance regarding the digital money transfer & remittance services shall hinder the market growth. The growing threat of cybercrimes with digital money transfer & remittance services could have a negative impact on the market.
The global digital money transfer & remittances market is segmented based on the product type as the domestic money transfer, and international money transfer. The international money transfer segment accounts for the significant market share of XX% in 2019 as the large amount of the money is transferred internationally for education, business purposes and other purposes. The international money transfer includes the electronic transfer of funds in a specific currency and amount to the friend, relative, customers, clients or company overseas. The international money transfer services have become affordable, quick and easy to transfer the money. The growing awareness regarding the financial services, such as mobile wallets, bank accounts, insurance, micro-credits, and a budget calculator shall stimulate the market growth.
Further, the market is also classified based on the channel as the banks, money transfer operators, online platforms, and others. The money transfer operators segment accounts for the highest market share of XX% in 2019 with the growing penetration of the mobile-based apps and mobile banking launched by the several financial institutions and money transfer operators. There is increase in the proportion of the customers adopting the money transfer operator model that provides the various advantages such as the affordability, transparency, safe and secure transaction, and convenience for transferring the money.
The online platforms segment is expected to witness the positive market growth over the forecasted period due to the growing usage of the online platforms for managing the fund transferred between the enterprises, and their customers. Online platforms are widely preferred by the several business-to-business (B2B) customers and finance professionals to make payments online. Online platforms provide the secure way of transferring the money in several currencies for various purposes.
By region, the global digital money transfer & remittances market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America dominated the global digital money transfer & remittances market as the several people are migrating to the North America for the better job opportunities, education, and business purposes. There is presence of the several market players providing the digital money transfer & remittance services. There is high usage of the digital money transfer & remittance services for receiving the payments and making the payments. There growing need for the safer, secure, and quicker cross-border monetary transactions shall increase the demand for the digital money transfer & remittances over the forecasted period.
Asia Pacific is expected to grow and expected to grow at the highest CAGR during the forecasted period. There is increasing number of the people using the mobile devices. The growing adoption of the banking and financial services shall stimulate the market growth. There is growing usage of the digital transfer networks, such as digital currencies, mobile money, mobile phone technology, and electronic identification for remitting the money to make the cross-border payments. The drastic market growth is expected to observed in the developing countries such as India, and China as there are large number of the people engaging with their overseas counterparts for education, business, entertainment-related activities, and other activities that involves the money transfer overseas. There is increasing government initiatives regarding the promotion of the digitalization shall stimulate the market growth. For instance, Indian government had launched the Digital India, the Government of India's visionary initiative to leverage the power of technology and make technology more accessible. These initiatives include the universal digital literacy, delivering all government services to citizens digitally, and development of secure and stable digital infrastructure.
The global digital money transfer & remittances market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Western Union (WU), Ria Financial Services, PayPal/Xoom, TransferWise, WorldRemit, MoneyGram, Remitly, Azimo are the leading market players with significant market share.
The major players are using services launch, market expansion, new capability addition strategies for holding their position in the market. For instance, in April 2020, Western Union, a cross-currency money movement and payments company, had expanded its digital money transfer services to more than 75 countries. The company would enable the real-time digital payments for customers and businesses.
In December 2019, Visa and TD Bank had provided a new capability to help Canadians move their money between their Canadian and United States accounts. This new capability would empower the people to end, receive and access their money where they want, when they want, and how they want.
In September 2018, Remitly had expanded its presence to the 11 new send countries across Europe giving millions of customers access to a modern and convenient remittance experience. This expansion would bring the Remitly's world-class product and technology to even more immigrant communities with the need to send money to their loved ones back home. Customers across Europe would use Remitly's reliable and easy-to-use mobile app that makes the process of sending money faster, easier, more transparent and less costly by eliminating the forms, codes, agents, extra time and fees typical of the traditional, century-old money transfer process.
In October 2018, Azimo, the leading European digital money transfer service, had expanded its operations in Europe as part of its rapid growth. The company had opened a new office in Amsterdam, as a base to help it grow its share of the global cross-border payments market. The Amsterdam office would grow as the business in Europe continues to scale.
Several companies are entering into the collaborations, acquisitions, mergers, and licensing activities for increasing their market penetration. For instance, In June 2020, MoneyGram International had entered into a remittance partnership with Digital Financial Services, a joint venture of Etisalat and Noor Bank. The partnership would enable eWallet users to make cross-border remittances to more than 200 countries and territories. eWallet is a licensed digital payment service in the UAE.