Global Remittance Market Overview, 2024-29

Global Remittance Market Overview, 2024-29

The global remittance market plays a pivotal role in the financial dynamics of many countries, especially in regions where migrant workers send money back to their families. Remittances, which encompass money or goods sent from individuals in one country to relatives or associates in another, have become a critical source of income for millions worldwide. These financial flows provide essential support to low- and middle-income families, contributing significantly to poverty alleviation, education, healthcare, and local economies. With international migration on the rise, the demand for secure, affordable, and efficient ways to transfer funds has intensified. In recent years, remittances have expanded beyond traditional methods such as banks and money transfer operators, with mobile money services and digital platforms gaining ground. This evolution is reshaping the market landscape, driving the shift from cash-based transactions to more innovative, tech-driven solutions that offer convenience and greater accessibility. The remittance market is expected to continue growing, driven by globalization, the increasing number of migrant workers, and the ongoing digitalization of financial services. As these changes unfold, remittance services are becoming not only a vital source of financial support but also an important tool for financial inclusion, particularly in developing nations.

According to the research report ""Global Remittance Market Overview, 2024-29,"" published by Bonafide Research, the Global Remittance Market was valued at more than USD 734.81 Billion in 2023, and expected to reach a market size of more than USD 1035.73 Billion by 2029 with the CAGR of 6.02% from 2024-2029. The global remittance market is witnessing several notable trends. Digital remittance services have seen a surge, especially with the rise of mobile money platforms like WorldRemit, TransferWise (now Wise), and PayPal's Xoom. These companies provide quicker, more affordable options for cross-border transactions, especially compared to traditional money transfer services. Moreover, blockchain technology has introduced opportunities to enhance security, transparency, and cost-efficiency in remittance transfers, with companies like Ripple leading the way. Government policies also play a significant role in shaping the market, as countries with large migrant populations often seek ways to reduce remittance costs and improve the efficiency of cross-border money flows. For instance, some governments are promoting the use of digital channels and financial inclusion programs to enhance access to remittance services. Despite a fragmented landscape, leading companies like Western Union, MoneyGram, and newer entrants like Remitly continue to dominate the market, competing fiercely for market share while working on innovations to streamline the remittance process. With remittance corridors to Asia, Africa, and Latin America seeing the most significant growth, this market remains essential in bridging the financial gap between developed and developing nations.

Market Drivers

• Increase in Migration and Cross-Border Workforce : The rising number of international migrants continues to be a major driver for the global remittance market. With more people seeking employment opportunities abroad, especially in developed economies, the need for reliable remittance services to send money back home has grown exponentially. Migrant workers play a vital role in supporting their families financially, and remittances have become an essential lifeline, particularly in low- and middle-income countries. As migration patterns expand, the demand for effective, fast, and affordable money transfer services increases, further fueling the market's growth.

Market Challenges

• Fraud and Security Concerns : Fraud and security risks are significant challenges in the global remittance market, particularly with the increasing volume of online transactions. Fraudulent activities such as phishing, identity theft, and scams targeting both senders and recipients can undermine trust in remittance services. As digital platforms grow in popularity, the need for robust cybersecurity measures becomes even more critical. The risk of financial loss due to cybercrime and fraud continues to challenge the growth of the market, forcing companies to invest heavily in technology to protect users' data and ensure secure transactions.

Market Trends

• Blockchain and Cryptocurrencies : Blockchain technology and cryptocurrencies are emerging as disruptive forces in the global remittance market. By leveraging the decentralized nature of blockchain, companies are offering secure, transparent, and cost-effective remittance solutions. Cryptocurrencies like Bitcoin and Ripple (XRP) are increasingly being used for cross-border transfers, providing faster transaction speeds and lower fees compared to traditional methods. Blockchain-based remittance platforms are gaining traction due to their potential to reduce transaction costs and increase the efficiency of cross-border money transfers, particularly in underserved markets.
Inward remittance, the flow of funds sent from abroad to individuals or businesses in a home country, stands as one of the most dominant segments in the global remittance market.

Inward remittance, the flow of funds sent from abroad to individuals or businesses in a home country, stands as one of the most dominant segments in the global remittance market. This segment is driven primarily by migrant workers who send money back to their families in developing or low-income countries. These funds are critical for families’ well-being, often used for daily expenses, education, healthcare, and housing, making inward remittances a vital source of income for millions worldwide. In many countries, especially in regions such as Southeast Asia, Sub-Saharan Africa, and Latin America, inward remittance surpasses foreign direct investment (FDI) and official development assistance (ODA) in terms of value, highlighting its importance. The dominance of this segment is also tied to the rising number of international migrants. With increasing job opportunities in developed nations, more people are moving abroad, contributing to a consistent rise in the volume of inward remittance. Inward remittance helps stimulate economic growth in these regions, contributing to higher purchasing power and better standards of living for recipients. The global remittance market continues to see growth in this segment due to more accessible digital platforms and mobile money services, which have simplified the process of sending money home. As these channels become more affordable and secure, inward remittance services are expected to lead the market for years to come, particularly as migration trends increase and financial inclusion efforts continue to expand.

The bank channel remains one of the most significant and leading segments in the global remittance market, thanks to its long-established trust, security and global reach.

The bank channel remains one of the most significant and leading segments in the global remittance market, thanks to its long-established trust, security, and global reach. Banks provide a reliable and well-regulated means of transferring funds across borders, making them a preferred choice for many remittance senders and recipients, especially in regions where formal financial systems are more developed. Banks are widely recognized for their adherence to stringent anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations, which enhance the security and credibility of remittance transactions. Additionally, banks benefit from their existing infrastructure and relationships with international financial institutions, which facilitates seamless transfers. Many consumers feel more comfortable sending and receiving remittances via banks because of their established reputations and financial oversight. The bank channel is also closely integrated with other financial services, such as savings accounts, credit cards, and loans, providing a one-stop-shop for customers’ financial needs. This integration enables banks to offer competitive exchange rates, robust transaction tracking, and customer service support, which strengthens their position in the remittance market. While digital and mobile money services are growing in popularity, especially in emerging markets, banks continue to hold a dominant position due to their vast branch networks, global partnerships, and trust factor. The scalability and regulatory framework of banks ensure their continued importance in the global remittance market, especially for larger transfers, making this channel a key player in shaping the industry’s future.

The Asia-Pacific (APAC) region stands as the most dominant and leading market in global remittance due to a combination of migration trends, economic dynamics, and technological advancements.

The Asia-Pacific (APAC) region stands as the most dominant and leading market in global remittance due to a combination of migration trends, economic dynamics, and technological advancements. A significant factor contributing to APAC's prominence is the high number of migrant workers from countries like India, the Philippines, China, and Bangladesh. These migrants send substantial remittances back to their home countries, providing crucial financial support to families, contributing to local economies, and enhancing living standards. According to the World Bank, countries in the APAC region consistently receive some of the highest remittance inflows globally. India, in particular, is the largest recipient of remittances worldwide, followed by China and the Philippines. This is due to a combination of factors, including high levels of migration, especially to the Middle East, North America, and other regions, and the large number of overseas workers who send money back home. The importance of remittances in these countries cannot be overstated, as they account for a significant portion of the GDP and contribute to poverty alleviation, education, healthcare, and infrastructure development. In addition, the APAC region has experienced rapid digital transformation in the financial services sector, with mobile wallets and online platforms enabling more efficient and cost-effective remittance services. These technological advancements have further fueled the growth of the remittance market, as consumers increasingly prefer digital solutions for transferring funds. The rise of platforms such as PayPal, Western Union, and Wise, coupled with mobile money services like GCash in the Philippines, has made it easier for migrants to send money home with speed and reduced costs. APAC region’s efforts toward improving financial inclusion, especially in countries with underdeveloped banking infrastructure, have paved the way for the growth of formal remittance channels. This combination of migration trends, economic reliance, and digital innovation solidifies APAC's position as the leading region in the global remittance market.

• In February 2024 Digital Wallet Corporation (DWC), did an agreement with Seven Bank, Ltd (Seven Bank), a Japanese bank, to acquire its subsidiary and international money transfer service, Seven Global Remit, Ltd. DWC owns and operates Smiles Mobile Remittance. This acquisition will allow DWC and Seven Bank to collaborate in redefining and improving the landscape of international money transfer services and financial inclusion for foreign residents in Japan.
• In February 2024, Visa signed an agreement with Egyptian Banks Company to introduce new solutions around electronic payment services, digital wallets and other offerings. The partnership aims to expand the scope of instant payments and streamline the receipt of international remittances from Egyptian expatriates, the companies said in a Sunday (Feb. 11) press release.
• In January 2024, Arab Bank and Mastercard announced the launch of cross border payment services RemitEx. The new collaboration leverages Mastercard's Cross-Border Services platform to provide a remittance product that will enable Arab Bank’s customers to make faster, safer and full-value transfers without fees for the recipient.
• In August 2022, Tempo, a remittance app for U.S. immigrants, was launched by Future FinTech (FTFT) Labs in partnership with payments enabler Currencycloud. Through this alliance, FTFT Labs provides its clients with a multi-currency wallet that has lower fees than the competitors.

Considered in this report
• Geography: Global
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Global Remittance Market with its value and forecast along with its segments
• Region & country wise Remittance market analysis
• Application wise Remittance distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Types
• Inward remittance
• Outward remittance

By Platform
• Non-Digital
• Digital

By Channel
• Bank
• Money Transfer Operators (MTO)
• Mobile banking/Online platform
• Others

By End User
• Business
• Personal

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.