United States 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 States 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 States has increased at 1.7% during 2023 to reach US$7,304.2 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 0.8%, increasing from US$7,182.4 million in 2023 to reach US$7,535.1 million by 2028.

Remittance outflow market in United States has increased at 6.3% during 2023 to reach US$88,658.5 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 3.8%, increasing from US$83,390.5 million in 2023 to reach US$102,858.3 million by 2028.

The remittance industry in the United States supports domestic economic stability and international development through substantial financial inflows. Recent trends indicate a strong shift towards digitalization, with emerging fintech players reshaping the landscape by offering innovative solutions prioritizing 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.

The future of remittances in the U.S. looks promising due to technological advancements and a commitment to financial inclusion. This offers opportunities for stakeholders to thrive in a changing market.

Overview of Inward Remittances

• Significance of Inward Remittances: The United States sends a lot of money to other countries, and many of the people sending this money are immigrants. This money is important for families back home because it helps them pay for food, school, and healthcare.

• Economic Contribution: Inward remittances contribute significantly to the economies of recipient countries, particularly in Latin America, Asia, and Africa. They enhance financial stability and promote economic development by increasing household income and consumption.

Identifying Trends and Developments in the Remittance Market

• Digital Transformation: The remittance market in the U.S. is undergoing significant digital transformation. The COVID-19 pandemic has increased the use of online platforms and mobile apps to send money.

• Example: Fintech companies like Wise and Remitly have gained popularity by offering user-friendly digital solutions that simplify the remittance process. These solutions allow users to send money internationally at lower costs than traditional banks.

• Increased Use of Mobile Wallets: More and more people are using mobile wallets because they are easy to use and have lower fees.

• Example: PayPal, Cash App, and Venmo make sending money to people in other countries easy and safe.

• Emergence of New Payment Technologies: The rise of blockchain technology and cryptocurrency influences how remittances are processed. These technologies offer faster transaction times and lower fees.

• Example: Companies like Ripple are exploring blockchain solutions for cross-border payments, aiming to reduce costs and improve transaction speed.

Analysing Currency Impact on Remittances

• Exchange Rate Dynamics: The value of the U.S. dollar against other currencies significantly impacts remittance flows. Changes in the value of money from one country to another can make it harder for people to buy things with the money they receive from family members living in another country.

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

• Example: Partnerships between U.S. 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.

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

• Example: Western Union has been enhancing its digital platform to better compete with emerging fintech players by improving user experience and reducing transaction costs.

• Strategic Partnerships: Partnerships between regular banks and financial technology companies are becoming increasingly common. These companies work together to use technology to provide better services.

• Example: Partnerships between banks and fintech firms allow 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 U.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 in the U.S.
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 to enhance financial inclusion will likely expand access to remittance services for underserved populations within the U.S., particularly among immigrant communities.

• Positive Growth Projections: Despite current challenges, the long-term outlook for the U.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 States. 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 States
• By Transaction Value
• By Transaction Volume
• By Average Value Per Transaction

Market Share of Key Players in United States

International Inbound Market Opportunity Trend Analysis by Channel in United States
• 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 States
• 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 States
• 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 States
• By Transaction Value
• By Transaction Volume
• By Average Value Per Transaction

International Outbound Market Opportunity Trend Analysis by Channel in United States
• 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 States
• 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 States
• 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

• Thorough and Current Insights: This report delivers extensive and up-to-date insights into the Argentina remittance market, covering key aspects such as market size, growth trends, transaction values, transaction volumes, average transaction values, and market share analysis segmented by transfer channels, consumer demographics, and major countries.

• Competitive Landscape Overview: Obtain a comprehensive overview of the competitive landscape through detailed market share data of leading players in the remittance industry.

• Practical Insights for Businesses and Investors: The report offers data-driven analysis tailored for businesses and investors in the Argentina remittance sector, helping to uncover new opportunities, evaluate risks, and make informed strategic decisions.

• Future Market Growth Projections: The report includes forecasts for future growth in the remittance market, empowering businesses and investors to effectively plan and strategize for upcoming trends.