Global money remittance market is forecast to grow at a CAGR of 6% by 2027
Mumbai, May 09, 2022 (GLOBE NEWSWIRE) -- Makreo Research has published a study on Global Remittance Market, report titled "Impact of Corona Virus (COVID-19) Over Global Remittance & Payments Market Outlook to 2025". The report delves deeply into various parameters such as market size, segmentation, value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography.
In 2020, Remittance flow had declined by 1.6% as compared to 2019. This decrease was significantly less than what had been predicted at the onset of the crisis, and it was much less than the drop in volumes seen during the 2008 financial crisis.
India, China, Mexico, the Philippines, and the Arab Republic of Egypt were the top five remittance recipients in current USD terms in 2021. Remittances to low- and middle-income countries are expected to increase by 7.3% in 2021. This recovery is more substantial than previous projections, and it follows the resiliency of remittances in 2020, when despite a harsh global recession caused by COVID-19, remittances fell by only 1.7%. Moreover, Higher oil prices boosted economic recovery and spurred the surge in remittances from the Gulf Cooperation Council (GCC) countries, which engage over half of South Asia's migrants. Remittances to India increased by 4.6% in 2021.
The rapid change in customer needs is directly driving the changing environment of cross-border payments. Digital channels are gaining popularity as a medium for remittance payments as a result of increased digitization and smartphone penetration, particularly in emerging nations.
On the other hand, Several Central Asian countries are heavily reliant on Russian remittances. With outbreak of the war many countries had a negative impact. The revised anticipated growth rates of remittances in Central Asia in 2022 is anticipated to decline.
Impact of Covid-19
The COVID-19 lockdown hindered the business of money transfer operators (MTOs), that rely on migration, thus underscoring the necessity of digitalization in service delivery. At the same time, a more significant factor disrupted remittance flows is the disproportionate loss of income experienced by migrants who have become stuck in countries of destination or returned, only to find little prospect of economic activity in their areas of origin, which are also affected by economic stagnation.
Further Key Findings
- Increasing Number of Migrant Students: Across the place students are travelling to obtain higher studies. The leading destination of migrant students are US, Canada and UK. In 2021, Canada recorded around 450,000 new study permits. New study permits taking effect were just over 400,000 before the pandemic, which fell to 255,000 in 2020.
- Increasing Internet Penetration: As of January 2022, the total number of Internet users globally stood at 4.95 billion, equivalent to 62.5% of the total world population, in comparison to 56.73% in 2019. In the US, more than 90% of the population has access to the Internet. As of 2021-end, Internet users were nearly 73% of China’s population. Internet penetration rate in India increased to about 45% in 2021
- Adoption of Cryptocurrency: Crypto is expected to constitute a significant share in global annual remittances in future. While the most often used media for sending remittances include PayPal, credit cards, and bank transfers, the use of cryptocurrency is rising due to its unique characteristics for cross-border transfers
- DLT Based Solutions: Cross-border remittances solution enables banks and payments systems to connect to new distributed ledger technology (DLT) based payment infrastructures (such as RippleNet) to process cross-border transactions of foreign exchange remittance. DLT based solutions support services such as FX Quote finalization and debit/credit of beneficiary accounts. DLT can significantly reduce inefficiencies and costs in the global money remittance system.
The study helps the reader to understand the following areas:
- How remittance industry has performed in the past and what is the expected future scenario?
- How COVID-19 has impacted the global economy and how economy is expected to recover in coming years?
- What is the expected impact of Russia-Ukraine war over the global economy and remittance industry?
- What are the leading countries for remittance inflow?
- What are the leading countries for remittance outflow?
- How Remittance sector is placed for Banks and MTOs?
- What is the state of Digital remittances in global economy?
- How cross border remittance sector is performing in Global market?
- What are the leading MTOs in the global remittance industry?
- What are the leading Banks in global remittance industry?
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