Remittance Global Market Report 2024

The remittance market size has grown strongly in recent years. It will grow from $737.05 billion in 2023 to $785.92 billion in 2024 at a compound annual growth rate (CAGR) of 6.6%. The increase observed in the historical period can be attributed to factors such as global migration trends, labor mobility, and the presence of diaspora communities. Additionally, economic disparities, the development of remittance corridors, and initiatives promoting financial inclusion have contributed to the growth of remittances during this period.

The remittance market size is expected to see strong growth in the next few years. It will grow to $990.33 billion in 2028 at a compound annual growth rate (CAGR) of 5.9%. The anticipated growth in the forecast period can be attributed to technology-enabled remittance services, economic and social factors, government policies, and regulatory changes, along with increased access to banking services. Noteworthy trends expected during the forecast period include the ongoing digital transformation in the remittance industry, the adoption of blockchain and cryptocurrency technologies, regulatory changes affecting the sector, disruptive influences from fintech, and the continued rise of mobile wallets and payments.

The growth of the remittance market is being significantly propelled by the increase in overseas migration. Overseas migration involves individuals crossing borders to reside and work in another country, leading to remittance transactions as migrant workers send money back home to support their families or make payments. Notably, data from the Australian Bureau of Statistics in December 2022 revealed a substantial 170% increase in migrant arrivals in Australia, rising from 146,000 in 2021 to 395,000 in 2022. This surge in overseas migration is a key driver for the remittance market.

The rising number of international students is another significant contributor to the growth of the remittance market. International students, who choose to pursue education in countries other than their own, often receive financial support from family members back home, leading to increased demand for remittance services. For instance, data from the U.S. Immigration and Customs Enforcement in April 2023 indicated a 10% increase in the number of active F-1 and M-1 students in the U.S., reaching 1,362,157 in 2022 compared to the previous year. The growing number of international students is expected to drive the remittance market further.

A notable trend in the remittance market is product innovation, with major companies focusing on integrating new technologies such as digital wallets. This approach aims to support the growing demand for remittances and maintain a competitive position in the market. For example, WiPay, a payment facilitation company based in the Caribbean, launched WiPay Remittance in May 2023. This service allows individuals in Grenada to make fast fund transfers directly to their WiPay wallet, eliminating the reliance on physical cash handling and reducing waiting times. The introduction of such innovative and seamless solutions is reshaping traditional remittance methods.

Major companies in the remittance market are emphasizing advanced service offerings, including AI-based Accounts Receivable (AR) services, to gain a competitive edge. AI-based AR services leverage artificial intelligence technologies to streamline and optimize accounts receivable processes. Wells Fargo, a U.S.-based financial services company, launched a new AR service in August 2021 that utilizes AI, machine learning, and robotic processing to automate payment and remittance data capture. This innovation helps lower operational costs, reduce the risk of errors in data entry, and expedite cash flow.

In January 2023, Remitly Global Inc., a digital financial services provider for immigrants, acquired Rewire, an Israel-based remittance platform and financial services provider, for an undisclosed amount. This strategic acquisition expanded Remitly's presence in the Middle East remittance market and enhanced its portfolio with the inclusion of a remittance platform.

Major companies operating in the remittance market report are Ria Financial Services Ltd., The Kroger Co., JPMorgan Chase & Co., Citigroup Inc., Bank of America Corporation, Wells Fargo & Company, Banco Bradesco S.A., PayPal Inc., U.S. Bancorp, Absa Group Limited, UAE Exchange, Western Union Holdings Inc., Instarem, XE Money Transfer, MoneyGram International Inc., Remitly Inc., Wise Ltd., Payoneer Inc., ZEPZ, WorldRemit Ltd., ZelleAirWallex, Skrill, OFX, CurrencyFair Limited, Azimo Limited, Popmoney, TransferGo, Bithumb.

North America was the largest region in the remittance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the remittance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the remittance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The two main types of remittance are inward remittance and outward remittance. Inward remittance involves the receipt of money in a bank account from a foreign bank account. It plays a vital role in contributing to the receiving country's economy by enhancing personal incomes, supporting families, and facilitating international trade and business transactions. Remittance services are offered through various channels, including banks, money transfer operators, and online platforms (wallets). End users, including businesses and individuals, utilize these services for purposes such as consumption, savings, and investments.

The remittance research report is one of a series of new reports that provides remittance market statistics, including the remittance industry's global market size, regional shares, competitors with a remittance market share, detailed remittance market segments, market trends and opportunities, and any further data you may need to thrive in the remittance industry. This remittance research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The remittance market consists of revenues earned by entities by providing remittance services such as remittance compliance services and remittance tracking services. The market value includes the value of related goods sold by the service provider or included within the service offering. The remittance market also includes sales instruments for mail transfer (MT), telegraphic transfer (TT), and draft transfer, which are used in providing remittance services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.