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South Africa Domestic and International Remittance Market Outlook to 2023 - By Channels Used (Banking Channels, Retailers, ADLAs & MTOs and Others), Remittance Corridors (Inbound-Outbound and Rural-Urban)

  • ID: 4911935
  • Report
  • April 2019
  • Region: Global, South Africa, Africa
  • 170 pages
  • Ken Research Private Limited
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FEATURED COMPANIES

  • ABSA Bank Limited
  • Bank of India
  • Citibank-South Africa
  • HBZ Bank Limited
  • Mercantile Bank Limited
  • Pick n Pay
  • MORE
The report titled “South Africa Domestic and International Remittance Market Outlook to 2023 - By Channels Used (Banking Channels, Retailers, ADLAs & MTOs and Others), Remittance Corridors (Inbound-Outbound and Rural-Urban)” provides a comprehensive analysis of South Africa’s Remittance Market including market evolution, overview, genesis, market size and market segmentation. Extensive focus has been placed in quantifying the transaction value and volume over the period, 2013-2023. The report covers aspects such as market segmentation (by channels used, by corridors and by income level) and an extensive snapshot on the bill payment market in South Africa. The report has covered the international and domestic space exclusively focusing on over the year’s computation & interpretation of change in volume, value and average ticket size of transactions in the country. Income earned & change in commission charged has been scrutinized well followed by explicit analyst explanations. Competitive landscape of major players including ABSA Bank, Capitec Bank, Bidvest Bank, Standard Bank, Western Union, MoneyGram, Hello Paisa, Mama Money, Mukuru, Shoprite, SPAR, PEP Stores and Pick n Pay have been covered including company overview, major business strategies, USP, distribution network, remittance services offered, financials and various other parameters. The report also covers future industry analysis (by value, volume and average transaction size), future market segmentation, SWOT analysis, growth opportunities, upcoming trends & analyst recommendations.

The report is useful for existing remittance companies, potential entrants, investors and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

Market Overview
South Africa domestic and international remittance market is concentrated and in the growth stage. The market includes both formal and informal payment service providers including banks, money transfer operators, ADLAs, retailers and mobile wallets. Prominent business strategies adopted by major players to position themselves in the market include forming an extensive network & improved reach, new services launched & service innovation and better pricing & handy/transparent operations offered. The market has been fuelled by increased migration, rising government support for new competitors, declining fee charges and increased awareness towards digitalized remittance services.

South Africa International Remittance Market
Market Size: South Africa international remittance market recorded a CAGR of close to -1% in terms of average transaction size and close to -2% in terms of volume & value of transaction during 2013-2018. The market showcased a slow & negative growth owing to low purchasing power & high cost associated with remitting money in both inbound & outbound space. Outbound remittance has captured close to half of the market size by value in 2018 declining consistently since 2013.
By Channel: International remittance market was led by banks and MTOs & ADLAs showcasing a CAGR close to -7% and 10% respectively during 2013-2018. ADLAs penetrated the market in 2015 and have been rising ever since. Retailers experienced a CAGR close to -5% in terms of value while the other players including post offices and hawalas experienced a single digit negative CAGR during 2013-2018 losing their share to other more organized players.
By Corridors: Inbound remittance flow corridors are dominated by United Kingdom followed by New Zealand, Australia and Angola respectively. Other countries namely, Canada, United States and Botswana witnessed exhibiting small share close to 15%. Owing to its proximity and availability of numerous job opportunities, United Kingdom has been the market leader magnetized by majority of emigrants. Outbound flow corridors, on the other hand, are dominated by Zimbabwe followed by Lesotho and Mozambique respectively. The outbound corridors consist of the SADC countries bordering South Africa wherein foreigners tend to move to a more established country with more stable Economy.
Competition Stage and Positioning: The international market is moderately concentrated with majority of the market being captured by MTOs & ADLAs and banks in 2018. There are 4 major banks namely ABSA Bank, Capitec Bank, Standard Bank and Bidvest Bank which have been active in the space. 2 major MTOs include Western Union and MoneyGram while major 4 ADLAs include Hello Paisa, Mama Money, Mukuru and Exchange4Free. Major 4 retailers include Shoprite, PEP Stores, Pick n Pay and SPAR. Major competing parameters include fees charged, time taken for the transaction, services offered, reach of the service providers, trust value attached, technological advancements, promotional offers and transparency in costs. The market has become highly competitive in terms of the fee charged after the penetration of the ADLAs offering low fees to the customer’s thereby increasing competition.
Future Projections: The market is expected to showcase a CAGR close to 6% and -4% by value and volume of transactions during 2018-2023. In terms of average transaction size the market is expected to register a CAGR close to 3% during the same.
Market Size: South Africa domestic remittance market recorded a CAGR of close to 3% in terms of average transaction size and close to 6% & 3% in terms of transaction value and volume during 2013-2018 respectively. The market showcased a positive growth with the entry of ADLAs & with the rise in government initiatives to push the market forward. Players witnessed rising profits owing to increase in the commission charged year-on-year averaging a CAGR of close to 15% during the review period. This thus, accelerated the income earned by the players at a CAGR of more than 20% during the review period.
By Channel: Domestic remittance market was led by banks with highest market share showcasing a CAGR close to 15% during 2016-2018. Retailers followed by Mobile wallet companies acquired the second and third highest share in the base year. MTOs witnessed strong growth during 2013-2018 by value of transactions. Other players including post offices and hawalas experienced a decline in popularity with the coming up of other organized gateways.
By Corridors: Highest amount of money has been remitted between urban to rural in 2018. This has been followed by Urban to urban channel with Rural to Urban having a minor share.
Competition Stage and Positioning: The domestic market is highly concentrated by number of remittance transactions with majority share being captured by Capitec Bank, First National Bank, ABSA Bank, Bidvest and Mukuru in 2018 in terms of value of transactions.

Key Target Audience
  • Banks
  • Money Transfer Operators
  • ADLAs
  • M-Wallet Companies
  • Hawalas
  • Convenience and Retail Stores
  • Supermarket Chains
  • South Africa Reserve Bank
  • Bills and Payments Companies
  • Investors & Venture Capital Firms
Time Period Captured in the Report:
  • 2013-2018 – Historical Period
  • 2019-2023 – Future Forecast
Companies Covered
ABSA Bank Limited, Albaraka Bank Limited, Bidvest Bank Limited, BNP Paribas SA – South Africa Branch, Capitec Bank Limited, China Construction Bank-Johannesburg Branch, Citibank-South Africa, Deutsche Bank AG-Johannesburg Branch, FirstRand Bank Limited, Habib Overseas Bank Limited, HBZ Bank Limited, HSBC Bank PLC–Johannesburg Branch, Investec Bank Limited, JPMorgan Chase Bank-Johannesburg Branch, Mercantile Bank Limited, Nedbank Limited, Sasfin Bank Limited, Société Générale, Standard Chartered Bank–Johannesburg Branch, State Bank of India, The South African Bank of Athens Limited, The Standard Bank of South Africa Limited, First National Bank, Bank of Baroda, Bank of India, Bank of China, Bank of Taiwan, Western Union , Money Gram, Hello Paisa, Mama Money, Mukuru, Exchange4Free, Imali Express (Pty), Ace Currency Exchange (Pty), Forex World (Pty) Limited, Global Foreign Exchange (Pty) Limited, Inter Africa Bureau de Change (Pty) Limited, Interchange RSA (Pty) Limited, Master Currency (Pty) Limited, Sikhona Forex (Pty) Limited, Tourvest Financial Services (Pty) Limited, American Express Foreign Exchange Services, Tower Bureau de Change (Pty) Limited, Travelex Africa Foreign Exchange (Pty) Limited, Southeast Exchange Company (South Africa), Terra Payment Services South Africa (RF) (Pty), WorldRemit South Africa (Pty) Limited, Shoprite, Pep Stores, Pick n Pay, Checkers, Spar, Ackermans and Boxers.
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • ABSA Bank Limited
  • Bank of India
  • Citibank-South Africa
  • HBZ Bank Limited
  • Mercantile Bank Limited
  • Pick n Pay
  • MORE
1. Executive Summary
  • South Africa Remittance Market Overview
  • Domestic and International Remittance Market Size And Overview
  • Domestic and International Remittance Market Segmentation
  • Domestic and International Remittance Competitive Analysis
  • Domestic and International Remittance Future Market Analysis and Projections
2. Research Methodology
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Size and Modeling
  • Approach – Market Sizing
  • Market Sizing – Modeliing
  • Limitations
  • Variables (Dependent and Independent)
  • Multi Factor Based Sensitivity Model
  • Regression Matrix
  • Final Conclusion
3. South Africa Remittance Market Overview
  • Domestic Remittance Market
  • International Remittance Market
  • Migration Trends and Patterns
4. South Africa Remittance Market Evolution, 1980’S-2013
  • Traditional Means For Money Transfers, 1980’s-1990’s
  • New Technologies & Updates in Remittance: Late 1990’s-2000’s
  • Recent Developments
5. South Africa Remittance Market Ecosystem, 2018

6. South Africa Remittance Market Value Chain Analysis, 2018

7. South Africa Remittance Market Major Operating Models, 2018
  • Authorized Dealers with Limited Authority (ADLA)
  • Money Transfer Operator (MTO)
  • Banks
  • Retailers
8. South Africa International Remittance Market, 2013-2023
8.1. Market Size on the Basis of Value of Remittance Transfers, Average Transaction Size and Volume of Transactions, 2013-2018
  • Inbound and Outbound Market Size Statistics
  • Macroeconomic Factors Affecting Market Size
8.2. South Africa International Remittance Market Segmentation, 2013-2018
  • Channels Used for Remittances, 2013-2018
  • By Outbound and Inbound Corridors, 2018
  • Outbound Corridors, 2018
  • Inbound Corridors, 2018
  • Income Level, 2018
8.3. South Africa International Remittance Market Future Outlook, 2019E-2023E
8.3.1. Market Size on the Basis of Value of Remittance, Average Transaction Size and Volume of Transaction, 2019E-2023E
  • Inbound and Outbound Market Size Statistics, 2019E-2023E
8.3.2. Future Market Segmentation By Channel Used in Remittance, Corridors and Income Level, 2023
  • By Channels, 2023E
  • By Corridors, 2023E
  • By Income Level, 2023E
9. South Africa Domestic Remittance Market, 2013-2023
9.1. Market Size on the Basis of Value of Remittance, Average Transaction Size, Volume of Transaction, Commission Charged and Income Earned, 2013-2018
9.2. Market Segmentation By Channel Used in Remittance, Corridors and Income Level, 2018
  • By Channels Used in Remittance, 2018
  • By Corridors, 2018
  • By Income Level, 2018
9.3. South Africa Domestic Remittance Market Future Market Outlook, 2019E-2025E
9.3.1. Market Size on the Basis of Value of Remittance, Average Transaction Size, Volume of Transaction, Commission Charged and Income Earned, 2019E-2023E
  • Future Macroeconomic Factors Affecting Market Size, 2019-2023
9.3.2. Market Segmentation By Channel Used in Remittance, Corridors and Income Level, 2023E
  • By Channels, 2023E
  • By Corridors, 2023E
  • By Income Level, 2023E
10. Government Regulations
10.1. South Africa Reserve Bank
10.2. Exchange Control
  • Reporting System
  • Authorized Dealers
  • Authorized Dealers With Limited Authority (ADLA)
  • Duties and Responsibilities of Authorized Dealers and AUthorised Dealers with Limited Authority
  • Documentary Evidence Required by Authorized Dealers in Foreign Exchange
  • Transactions with Common Monetary Area (CMA) Residents
  • Income Transfers
  • Personal transfers by foreign nationals and immigrants
  • Operational Conditions Applicable to Conducting the Business of an Authorised Dealer in Foreign Exchange with Limited Authority
10.3. Anti Money Laundering (AML)
  • Customer Due Diligence (CDD)
  • Monitoring Requirements
  • Intermediaries And Correspondent Banking
10.4. Immigration Regulation
10.5. Documentation

11. Snapshot On South Africa Bill Payment Market, 2013-2018
11.1. Market Ecosystem, 2018
11.2. Market Overview, 2018
11.3. Government Regulations
11.4. Major Players
11.5. Analyst Recommendations

12. South Africa Remittance Market Customer Profiling, 2018

13. South Africa Industry Swot Analysis, 2018

14. Competitive Landscape of Major Players In South Africa Remittance Market, 2018
14.1. Competition Scenario (Market Nature, Major Players, Market Positioning and Major Competing Parameters), 2018
14.2. Market Share of Major Players (International & Domestic Market), 2018
  • International Remittance Market Share By Value Of Remittance Transactions, 2018
  • Domestic Remittance Market Share By Volume Of Remittance Transactions, 2018
14.3. Strengths and Weaknesses of Major Players (ABSA Bank, Standard Bank, Capitec Bank, Bidvest Bank, Hello Paisa, Mama Money, Mukuru, Exchange4Free, Shoprite, PEP Stores, Pick n Pay, SPAR, Western Union, MoneyGram), 2018

15. Company Profiling of Major Players
15.1. ABSA Bank Limited
15.2. Standard Bank
15.3. Bidvest Bank (BVBL)
15.4. Capitec Bank
15.5. Shoprite
15.6. PEP Stores
15.7. Pick n Pay
15.8. SPAR
15.9. Western Union
15.10. Money Gram
15.11. Hello Paisa
15.12. Mama Money
15.13. Mukuru
15.14. Exchange4Free

16. Analyst Recommendations
Note: Product cover images may vary from those shown
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  • ABSA Bank Limited
  • Albaraka Bank Limited
  • Bidvest Bank Limited
  • BNP Paribas SA – South Africa Branch
  • Capitec Bank Limited
  • China Construction Bank-Johannesburg Branch
  • Citibank-South Africa
  • Deutsche Bank AG-Johannesburg Branch
  • FirstRand Bank Limited
  • Habib Overseas Bank Limited
  • HBZ Bank Limited
  • HSBC Bank PLC–Johannesburg Branch
  • Investec Bank Limited
  • JPMorgan Chase Bank-Johannesburg Branch
  • Mercantile Bank Limited
  • Nedbank Limited
  • Sasfin Bank Limited
  • Société Générale
  • Standard Chartered Bank–Johannesburg Branch
  • State Bank of India
  • The South African Bank of Athens Limited
  • The Standard Bank of South Africa Limited
  • First National Bank
  • Bank of Baroda
  • Bank of India
  • Bank of China
  • Bank of Taiwan
  • Western Union
  • Money Gram
  • Hello Paisa
  • Mama Money
  • Mukuru
  • Exchange4Free
  • Imali Express (Pty)
  • Ace Currency Exchange (Pty)
  • Forex World (Pty) Limited
  • Global Foreign Exchange (Pty) Limited
  • Inter Africa Bureau de Change (Pty) Limited
  • Interchange RSA (Pty) Limited
  • Master Currency (Pty) Limited
  • Sikhona Forex (Pty) Limited
  • Tourvest Financial Services (Pty) Limited
  • American Express Foreign Exchange Services
  • Tower Bureau de Change (Pty) Limited
  • Travelex Africa Foreign Exchange (Pty) Limited
  • Southeast Exchange Company (South Africa)
  • Terra Payment Services South Africa (RF) (Pty)
  • WorldRemit South Africa (Pty) Limited
  • Shoprite
  • Pep Stores
  • Pick n Pay
  • Checkers
  • Spar
  • Ackermans and Boxers
Note: Product cover images may vary from those shown
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