Dublin, Aug. 01, 2024 (GLOBE NEWSWIRE) -- The "Global Digital Remittance Market Overview, 2024-2029" report has been added to ResearchAndMarkets.com's offering.
According to the report, the market is anticipated to cross USD 45 billion by 2029, increasing from USD 21 billion in 2023. The market is expected to grow with a 13% CAGR from 2024 to 2029.
Market Drivers:
- Financial Inclusion Initiatives: Governments and international organizations are increasingly promoting financial inclusion as a key driver for economic development. Digital remittance services play a crucial role in this initiative by providing affordable and accessible financial services to unbanked and underbanked populations. Mobile money solutions and digital wallets enable individuals in remote areas to receive and manage funds securely, fostering economic empowerment and reducing poverty levels.
- Global Migration Trends: The rise in global migration patterns, driven by economic opportunities and geopolitical factors, fuels the demand for cross-border remittance services. Migrant workers often send a significant portion of their earnings back to their families in their home countries, making remittances a vital source of income for many households. The convenience and speed of digital remittance platforms meet the needs of migrant populations, contributing to the growth of the global remittance market.
Market Challenges:
- Cost and Transparency Issues: The cost of digital remittances remains a concern, particularly for smaller transactions. Service fees, foreign exchange rates, and hidden charges can reduce the amount received by recipients, impacting the affordability and accessibility of remittance services. Enhancing price transparency and reducing transaction costs through competitive pricing strategies and innovative fintech solutions are critical to addressing this challenge.
- Infrastructure and Connectivity Barriers: Access to reliable internet connectivity and digital infrastructure poses challenges in some regions, particularly in rural and underserved areas. Limited access to smartphones, electricity, and banking services can hinder the adoption of digital remittance solutions among marginalized populations. Addressing infrastructure gaps and promoting digital literacy initiatives are essential to ensure equitable access to remittance services globally.
Market Trends:
- Emergence of Stablecoins and Central Bank Digital Currencies (CBDCs): The development of stablecoins pegged to fiat currencies and CBDCs by central banks is reshaping the landscape of digital remittances. Stablecoins offer stability and reduced volatility compared to cryptocurrencies, making them attractive for cross-border transactions. CBDCs, on the other hand, provide governments with greater control over monetary policy and financial stability while potentially lowering transaction costs and enhancing financial inclusion.
- Focus on User Experience and Innovation: User-centric design and innovation are driving the evolution of digital remittance services towards seamless and intuitive customer experiences. Mobile-first interfaces, biometric authentication, and AI-driven personalization enhance usability and security, increasing consumer confidence in digital payment solutions.
Other Market Insights:
- Outward digital remittance is gaining huge growth in global marketing, mainly due to accelerating migration trends around the world and economic opportunities that compel people to look for work or educational prospects abroad.
- Online platforms are developing in the Digital Remittance Market across the world primarily because they provide a convenient, cost-effective, fast money transfer solution that caters to the ever-growing need for cross-border transactions in today's interdependent world.
- The growth of small firms within the global digital remittance market is an increasing demand for efficient, most cost-effective, and convenient solutions applied to international trade and commerce.
- APAC is witnessing strong growth in the global digital remittance market due to their economic growth and rapidly rising cross-border trade.
Years considered in this report:
- Historic year: 2018
- Base year: 2023
- Estimated year: 2024
- Forecast year: 2029
Aspects covered in the report:
- Digital Remittance market outlook with its value and forecast, along with its segments
- Various drivers and challenges
- On-going trends and developments
- Top profiled companies
- Strategic recommendations
By Type:
- Inward
- Outward
By Channel:
- Bank
- Money Transfer Operation
- Online platform
- Others
By End User:
- Migrant Labour
- Personal
- Small Business
- Others
A selection of companies mentioned in this report includes, but is not limited to:
- PayPal Holdings, Inc
- The Western Union Company
- MoneyGram International, Inc.
- WorldRemit Limited
- Wise PLC
- Remitly
- OFX
- Nium
- Euronet Worldwide, Inc.
- Ripple Labs, Inc.
For more information about this report visit https://www.researchandmarkets.com/r/wvnb1w
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