Global Remittance Market research Report, 2024-29

Market Dynamic

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.

Key Development

• 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.