United Kingdom International Remittance Market Business and Investment Opportunities - Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics – Q3 2024

United Kingdom International Remittance Market Business and Investment Opportunities - Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics – Q3 2024

According to PayNXT360, the international inbound remittance market in United Kingdom has increased at 7.8% during 2023 to reach US$4,455.4 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 4.8%, increasing from US$4,134.6 million in 2023 to reach US$5,365.0 million by 2028.

Remittance outflow market in United Kingdom has increased at 3.5% during 2023 to reach US$11,462.3 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 2.0%, increasing from US$11,078.6 million in 2023 to reach US$12,398.9 million by 2028.

The remittance industry in the United Kingdom is positioned for continued growth as it adapts to evolving consumer preferences and technological advancements. Recent trends indicate a strong shift towards digitalization, with emerging fintech players reshaping the landscape by offering innovative solutions that prioritize cost-effectiveness and user experience. As competition intensifies among traditional providers and new entrants, strategic partnerships and technological investments will be essential for maintaining relevance.

Looking ahead, the future of remittances in the UK appears promising, driven by ongoing advancements in technology and a commitment to enhancing financial inclusion. This evolving landscape presents opportunities for stakeholders to adapt and thrive in a rapidly changing market environment.

Overview of Inward Remittances

• Importance of Inward Remittances: The United Kingdom is one of the largest sources of remittances globally, with a significant expatriate population sending money back to their home countries. These remittances are vital for many families, providing essential financial support for living expenses, education, and healthcare.

• Economic Contribution: Inward remittances contribute significantly to the UK economy by enhancing the financial stability of recipient countries, particularly in low- and middle-income regions. They play a crucial role in supporting local economies and alleviating poverty.
Identifying Trends and Developments in the Remittance Market

• Digital Transformation: The remittance market in the UK is experiencing a notable shift towards digital solutions. The COVID-19 pandemic has accelerated this transition, with more consumers opting for online platforms to send money.

• Example: Fintech companies like Wise and Revolut have gained popularity by offering user-friendly digital platforms that simplify the remittance process, allowing users to send money internationally with lower fees compared to traditional banks.

• Cost Reduction Initiatives: There is a growing emphasis on reducing the cost of remittance transactions. The UK government, alongside G20 countries, has committed to lowering remittance costs to 3% by 2030.

• Example: As of mid-2022, the average cost to send $200 internationally from the UK was approximately 5.62%, highlighting ongoing efforts to make remittances more
affordable.

• Emergence of New Payment Technologies: The rise of mobile payment technologies and digital wallets is reshaping how remittances are sent and received.

• Example: Services like PayPal and TransferWise are increasingly integrated into everyday financial transactions, making it easier for users to manage their finances and send money across borders.

Analysing Currency Impact on Remittances

• Exchange Rate Dynamics: The value of the British pound against other currencies significantly impacts remittance flows. Fluctuations in exchange rates can affect the amount received by beneficiaries in their local currencies.

• Local Currency Transactions: Initiatives promoting local currency transactions can streamline remittance processes and reduce costs for senders.

• Example: Partnerships between UK banks and foreign financial institutions facilitate local currency transfers, enhancing efficiency in cross-border payments.

Exploring Strategies by Players Operating in Remittance

• Diversification of Services: Companies in the remittance sector are expanding their service offerings beyond traditional money transfers to include services like bill payments and mobile recharges, enhancing customer loyalty.

• Investment in Technology: Players are investing heavily in technology to improve transaction speed, security, and transparency.

• Example: Western Union has been investing in its digital platform to enhance user experience and compete effectively with emerging fintech players.

• Strategic Partnerships: Collaborations between traditional financial institutions and fintech companies are becoming increasingly common to leverage technology for better service delivery.

• Example: The collaboration between banks and fintech firms allows for improved customer engagement through innovative payment solutions.

Recognizing Emerging Players and Market Competition

• Rise of FinTech Innovations: New entrants like Wise (formerly TransferWise) are disrupting traditional remittance models by offering lower-cost solutions that appeal to tech-savvy consumers.

• Example: Wise has gained significant traction by providing transparent fee structures and real-time exchange rates, making it a preferred choice among users seeking cost-effective options for sending money internationally.

• Intensifying Competition Among Providers: The entry of fintech players has increased competition in the UK's remittance market, prompting traditional institutions to enhance their services and adopt more competitive pricing strategies.

• Example: PayPal's expansion into international remittances has added competitive pressure on established banks and money transfer services operating in the UK.

Investment Trends and Future Outlook for Remittances

• Focus on Digital Infrastructure: Future growth in the remittance market will be driven by investments in digital infrastructure, including payment systems that facilitate faster transactions across borders.

• Government Initiatives for Financial Inclusion: Efforts aimed at enhancing financial inclusion will likely expand access to remittance services for underserved populations within the UK.

• Positive Growth Projections: Despite current challenges, the long-term outlook for the UK's remittance market remains optimistic due to increasing digital adoption and favourable regulatory environments that promote innovation in financial services.

This report from PayNXT360 provides a comprehensive analysis of the international inbound and outbound remittance market in United Kingdom. It covers the market opportunity by transaction value, transaction volume, average value per transaction, key market players, market opportunity by channel, consumer profile, and by sending / receiving countries.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

International Inbound Market Opportunity Trend Analysis in United Kingdom
• By Transaction Value
• By Transaction Volume
• By Average Value Per Transaction

Market Share of Key Players in United Kingdom

International Inbound Market Opportunity Trend Analysis by Channel in United Kingdom
• Digital (transaction value, transaction volume, average value per transaction)
• Mobile (transaction value, transaction volume, average value per transaction)
• Non-Digital (transaction value, transaction volume, average value per transaction)

International Inbound Remittance Analysis of Consumer Profile in United Kingdom
• Analysis by age group of senders
• Analysis by income of senders
• Analysis by occupation of senders
• Analysis by occupation of beneficiaries
• Analysis by purpose

International Inbound Remittance Flow Analysis (Country to State / Region) in United Kingdom
• Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
• Market share by transfer channel by key state / regions

International Outbound Market Opportunity Trend Analysis in United Kingdom
• By Transaction Value
• By Transaction Volume
• By Average Value Per Transaction

International Outbound Market Opportunity Trend Analysis by Channel in United Kingdom
• Digital (transaction value, transaction volume, average value per transaction)
• Mobile (transaction value, transaction volume, average value per transaction)
• Non-Digital (transaction value, transaction volume, average value per transaction)

International Outbound Remittance Analysis of Consumer Profile in United Kingdom
• Analysis by age group of senders
• Analysis by income of sender
• Analysis by occupation of sender
• Analysis by occupation of beneficiaries
• Analysis by purpose

International Outbound Remittance Flow Analysis (State / Region to Country) in United Kingdom
• Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
• Market share by transfer channel by key state / regions

Reasons to buy

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