Digital Money Transfer and Remittances Market Size, Share, Industry, Forecast and outlook (2024-2031)

Digital Money Transfer & Remittances Market is segmented By Product Type (Domestic Money Transfer, International Money Transfer), By Channel (Banks, Money Transfer Operators, Online Platforms, Others), By Application (Consumer, Enterprise), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Market Overview

Report on Global Digital Money Transfer & Remittances Market size, recent trends, competitive intelligence and future market outlook. Quicker cross-border monetary transactions usage raises the market of Digital Money Transfer & Remittances. North America dominated the global market. The competitive rivalry intensifies with PayPal/Xoom, MoneyGram, TransferGo and others operating in the market.

Digital money transfer and remittances refer to sending money to another person with the help of digital platforms. These are the transparent and data-driven ecosystem for providing monetary transactions. Digital money transfer and remittances are the ideal platforms for companies to receive payments from customers and make payments to suppliers.

Market Summary

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Market Dynamics

The market is driven by the increasing demand for digital money transfer & remittance services with the growing need for safer, secure, and quicker cross-border monetary transactions. There is an increase in the number of businesses serving customers from other countries and relying on procuring goods from suppliers abroad. There is a growing penetration of smartphones with an increasing number of digital-savvy customers for digital money transfer & remittances. There is a growing usage of POS systems in various industries such as retail, restaurants, healthcare, transportation, eCommerce, and others. The increase in the number of campaigns regarding digitalization shall stimulate the market.

The increasing cross-border transactions as the people are moving to various countries in search of education or jobs. The growing industrialization and urbanization have attracted many people of the different semi-rural and rural areas towards the urban parts of the world.

There is an increase in the launch of digital money transfer & remittance services. For instance, in February 2020, Paysend had a launch its money transfer services in Australia. Payment services would be used in the $1.3 trillion economies to send funds to companies located abroad. Payment services would be used in the $1.3 trillion economies to send funds to companies located abroad.

In November 2019, Azimo, a London-based money transfer service, launched its new Dutch subsidiary Azimo BV to create a separate operations hub for the management of transfers sent from outside the United Kingdom. The move marks the anticipation of Brexit amongst FinTechs in the United Kingdom.

However, the lack of awareness and guidance regarding digital money transfer & remittance services will hinder the market growth. The growing threat of cybercrimes with digital money transfer & remittance services could harm the market.

Market Segmentation Analysis

The global digital money transfer & remittances market is segmented based on domestic money transfers and international money transfers. The international money transfer segment accounts for a significant market share of XX% in 2019 as a large amount of the money is transferred internationally for education, business purposes, and other purposes. The international money transfer includes the electronic transfer of funds in a specific currency and amount to the friend, relative, customers, clients, or company overseas. International money transfer services have become affordable, quick, and easy to transfer money. The growing awareness regarding financial services, such as mobile wallets, bank accounts, insurance, micro-credits, and a budget calculator shall stimulate market growth.

Further, the market is also classified based on the channel as the banks, money transfer operators, online platforms, etc. The money transfer operators segment accounts for the highest market share of XX% in 2019 with the growing penetration of the mobile-based apps and mobile banking launched by several financial institutions and money transfer operators. There is an increase in the proportion of the customers adopting the money transfer operator model that provides various advantages such as affordability, transparency, safe and secure transaction, and convenience for transferring the money.

The online platforms segment is expected to witness positive market growth over the forecasted period due to the online platforms' growing usage for managing the fund transferred between the enterprises and their customers. Online platforms are widely preferred by several business-to-business (B2B) customers and finance professionals to make payments online. Online platforms provide a secure way of transferring money in several currencies for various purposes.

Market Geographical Share

By region, the global digital money transfer & remittances market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America dominated the global digital money transfer & remittances market. Several people are migrating to North America for better job opportunities, education, and business purposes. There is a presence of several market players providing digital money transfer & remittance services. There is high usage of digital money transfer & remittance services for receiving the payments and making the payments. There is a growing need for safer, secure, and quicker cross-border monetary transactions to increase the demand for digital money transfers & remittances over the forecasted period.

Asia Pacific is expected to grow and expected to grow at the highest CAGR during the forecasted period. There is an increasing number of people using mobile devices. The growing adoption of banking and financial services shall stimulate market growth. There are growing digital transfer networks, such as digital currencies, mobile money, mobile phone technology, and electronic identification for remitting the money to make cross-border payments. The drastic market growth is expected to be observed in developing countries such as India and China. Many people engage with their overseas counterparts for education, business, entertainment-related activities, and other activities that involve money transfer overseas. There are increasing government initiatives regarding the promotion of digitalization that shall stimulate market growth. For instance, the Indian government had launched Digital India, the Government of India’s visionary initiative to leverage technology's power and make technology more accessible. These initiatives include universal digital literacy, delivering all government services to citizens digitally, and developing secure and stable digital infrastructure.

Companies and Competitive landscape

The global digital money transfer & remittances market is highly competitive with several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Western Union (WU), Ria Financial Services, PayPal/Xoom, TransferWise, WorldRemit, MoneyGram, Remitly, Azimo are the leading market players with significant market share.

The major players are using services launch, market expansion, new capability addition strategies for holding their position in the market. For instance, in April 2020, Western Union, a cross-currency money movement and payments company, had expanded its digital money transfer services to more than 75 countries. The company would enable real-time digital payments for customers and businesses.

In December 2019, Visa and TD Bank had provided a new capability to help Canadians move their money between their Canadian and United States accounts. This new capability would empower the people to send, receive, and access their money where they want when they want, and how they want.

In September 2018, Remitly had expanded its presence to the 11 new send countries across Europe, giving millions of customers access to a modern and convenient remittance experience. This expansion would bring Remitly’s world-class product and technology to even more immigrant communities with the need to send money to their loved ones back home. Customers across Europe would use Remitly’s reliable and easy-to-use mobile app that makes the process of sending money faster, easier, more transparent, and less costly by eliminating the forms, codes, agents, extra time, and fees typical of the traditional, century-old money transfer process.

In October 2018, Azimo, the leading European digital money transfer service, had expanded its operations in Europe as part of its rapid growth. The company had opened a new office in Amsterdam as a base to help it grow its share of the global cross-border payments market. The Amsterdam office would grow as the business in Europe continues to scale.

Several companies enter into collaborations, acquisitions, mergers, and licensing activities to increase their market penetration. For instance, In June 2020, MoneyGram International had entered into a remittance partnership with Digital Financial Services, a joint venture of Etisalat and Noor Bank. The partnership would enable eWallet users to make cross-border remittances to more than 200 countries and territories. eWallet is a licensed digital payment service in the UAE.