Remittances Market overview:

International money transfer is commonly referred as 'remittances’. As per the World Bank, global remittances reached an unprecedented value of $689 billion in 2018, an upward drift from $633 billion recorded in 2017. Some factors responsible for the growth in global remittances are: increasing migrating population to developed countries, pressure from the United Nations to lower transfer fees, bourgeoning FinTech and mobile payments technology, and increasing numbers of non-bank remittance vendors such as MoneyGram and Western Union. Resultantly, the global remittance market size was estimated as $1.74 billion in 2018, with growing refugee population and rampant urbanization, the market is progressing at a CAGR of 19.56%, during the forecast period 2019-2025.

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Remittances Market Outlook:

In 2018, North America was reckoned to be the leading region with an estimated market share of 33.81% of the global market. Increasing number of immigrants settling in the U.S. for several purposes such as education and employment are some pivotal factors supporting regional dominance. According to the Migration and Development Brief by the World Bank Group, in April 2018, the number of migrants globally was estimated to be 266 million, with the U.S. alone accounted around 43 million immigrants. Similarly, according to the findings by the Pew Research Center, remittance outflow from the U.S. was recorded to be $148.4 billion in 2017, with inflows calculated to be $6.6 billion for the same year. The U.S. with its affluent economy and industrial sector is a lucrative international center for enterprises to expand towards. Therefore, there is a recurring demand for workforce, inviting employees from all across the globe creating intense remittance market demand.

Although, personal remittance has a major share among the end-user verticals, business remittance is figured to be the fastest growing segment progressing with a CAGR of 33.81% through to 2025. Globalization has enabled enterprises to develop their fronts and expand internationally, resulting in an upsurge of across border investments, especially in developing countries with untapped opportunities. For instance, developing economy of India is the leading remittance recipient globally with a value of $79 billion (+10% from 2017) in 2018.

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Remittances Market Growth Drivers and Trends:

· Support from the World Bank in a form of mobilizing funds on migration, to support migrants with an objective of eradicating poverty is a major factor disrupting the global remittance market size. Moreover, migration-related Sustainable Developments Goals such as reducing transaction fee from 7.1% in 2018 to 3% by financial institutions will enable migrants for efficient transfers, augmenting the market share. Also, with declining fee, money transfer operators (MTO) are offering novel services such as virtual bank accounts and prepaid debit cards to carve a niche for themselves, hence increasing traffic in the market to leverage such services.

·         · Substantial progressions and rampant developments in the global mobile payments and Fin Tech market are being profitably capitalized by the remittance market vendors. With the advent of mobile payment services, a nuance of transparency is added, as transaction can be initiated by user itself through a smartphone. This benefits the user with utmost privacy and security, which is a major factor attracting remittance senders towards utilization of these modern services.

· As the United Nations is portraying severe stance on diminishing transaction fee, instant remittance is a major trend disrupting the market with competitive charges of 0.5% of the transaction amount on limited amounts, and transparency in opaque market of international money transfers. InstaRem and Peer Transfer are some global vendors providing instant remittance services. Tracing escalating number of students migrating to different countries for education, such economic services on limited amounts are capable of dominating major shares in the market.

Remittance Market Companies:

Some players with substantial market share in the remittance market are WorldRemit Ltd., InstaReM, Ria Financial Outward Remittance, Azimo Ltd., TransferWise Ltd., WorldRemit Ltd., Banco Bradesco Sa, Euronet Worldwide, Inc., Societe Generale, Xoom Corporation and The Kroger Co., and SingX Pte Ltd.

Mergers and acquisitions are predominant strategies adopted by the market players. For instance, Xoom was acquired by PayPal in 2015 for $890m that turned out to be an example of successful exit for investors in the global remittance market.

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Remittance Market Research Scope:

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the Remittance Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth, while also detailing the key challenges and possible threats. The key areas of focus include the various types of developments in global Remittance Market, and their specific advantages to the market.