Summary
- • Global remittances are expected to reach $715 billion in 2019.
- • By 2023, the global remittances market is projected to exceed $1 trillion.
- • Digital money transfers are on the rise, with a growth rate of 20% annually.
- • The average cost of sending $200 globally is estimated at around 7%.
- • The largest recipient of remittances in 2018 was India, receiving over $79 billion.
- • More than 70% of remittances to low and middle-income countries flow through money transfer operators.
- • The top three corridors for remittances are the United States to Mexico, the United States to India, and the United Arab Emirates to India.
- • Mobile money accounts have surpassed traditional bank accounts in several countries, including Kenya and Tanzania.
- • China leads in the adoption of digital payment platforms, with over 80% of respondents indicating regular use of such services.
- • The remittance market is highly fragmented, with thousands of companies operating worldwide.
- • The average fee for sending remittances within Sub-Saharan Africa is about 9%.
- • Over 1.7 billion adults globally remain unbanked, highlighting the importance of alternative money transfer services.
- • The Asia-Pacific region accounts for more than one-third of global remittance inflows.
- • The digital cross-border payment market is expected to exceed $100 billion by 2022.
- • Blockchain technology is increasingly being used for improving transparency and reducing costs in money transfers.
Buckle up, money movers and shakers, because the global remittance game is about to hit a whopping $1 trillion mark by 2023, and the digital money transfer wave is riding high with a 20% growth rate annually. With India securing its spot as the top remittance recipient and innovative players like M-Pesa clocking over 1 billion transactions a month, traditional banking is starting to look a bit dated. From blockchain tech to mobile money accounts surpassing banks in Kenya and Tanzania, the world of money transfers is anything but static. So grab your virtual wallets and get ready to navigate the ever-evolving landscape of global remittances, where the only constant is change.
Cost of Sending Remittances
- The average cost of sending $200 globally is estimated at around 7%.
- The average fee for sending remittances within Sub-Saharan Africa is about 9%.
- Sub-Saharan Africa remains the most expensive region to send remittances to, with an average cost of 9%.
- The cost of sending remittances to Europe and Central Asia is the lowest globally, averaging around 5.9%.
- The average cost of sending remittances to Southeast Asia is around 8.6%, one of the highest in the world.
- The average cost of sending remittances to the Middle East is around 6.5%.
- The average fee for sending remittances to Latin America and the Caribbean is approximately 6.5%.
- The average cost of sending remittances to East Asia and the Pacific is around 6.4%.
- The cost of sending remittances to East Asia and the Pacific averages around 6.5%.
- The average cost of sending remittances to Latin America is approximately 6.5%.
- The average fee for sending remittances to South Asia is around 5.7%.
- The average cost of sending remittances to the Middle East and North Africa region is approximately 6.9%.
Interpretation
In a world where the cost of crossing borders takes a toll not only on time but also on wallets, the global money transfer industry seems to have its own intricate web of financial geography. With Sub-Saharan Africa assuming the role of the demanding landlord, boasting a hefty 9% fee for sending within its boundaries, one can't help but wonder if the currency itself is donning a safari outfit for the journey. Meanwhile, those fortunate enough to have kinship ties in Europe and Central Asia get to enjoy a discounted rent at 5.9%, as if their remittances come with a complimentary continental breakfast. As for Southeast Asia, it appears the cost of passage comes with a premium view, soaring to 8.6%, making one question if their money is taking an unexpected detour through luxury tax. Amidst these financial adventures, one thing remains clear - the global remittance landscape is not just about sending money; it's a thrilling ride of costs and fees that can either break the bank or leave you flying high on monetary clouds.
Digital Money Transfers Trend
- Digital money transfers are on the rise, with a growth rate of 20% annually.
- Mobile money accounts have surpassed traditional bank accounts in several countries, including Kenya and Tanzania.
- China leads in the adoption of digital payment platforms, with over 80% of respondents indicating regular use of such services.
- Kenya's mobile payment service, M-Pesa, processes over 1 billion transactions per month.
- In 2020, digital wallets were the most popular way to send money internationally, surpassing traditional bank transfers.
- Mobile money transactions in Africa are expected to reach $1 trillion by 2022.
- The number of cross-border payments is projected to grow by 5.3% annually, reaching 1.1 trillion transactions by 2025.
- Around 40% of cross-border transactions are expected to be made via real-time payment systems by 2025.
- The number of mobile money accounts in emerging markets surpassed 1.2 billion in 2020.
- The global mobile money market is expected to reach $1.7 trillion by the end of 2021.
- Mobile money transactions in Latin America grew by 58% in 2020, reaching $714 billion.
- Around 62% of retail transactions in China are conducted on digital platforms, including mobile wallets.
- Mobile payment transactions in India are projected to surpass $1 trillion by 2022.
- The adoption of contactless payments grew by 40% globally in 2020, driven by the shift towards digital transactions.
- Mobile money services are increasingly gaining popularity in rural areas, with over 290 million registered accounts in developing countries.
- Digital wallet transactions are expected to surpass $9.2 trillion by 2025, driven by increased adoption of mobile payment platforms.
Interpretation
In a world where digital money moves faster than the speed of light, it's no surprise that our wallets are getting lighter and our mobile phones heavier. With mobile money revolutionizing the financial landscape, it seems we are one step closer to a world where "cash is king" is nothing more than a nostalgic phrase. As China leads the charge in embracing digital payment platforms and Kenya's M-Pesa juggernaut processes transactions at a jaw-dropping pace, it's clear that the future of money is not just in our hands but in the palms of our hands. So, as we tap, swipe, and click our way through the ever-evolving realm of mobile money, one thing is certain – change is not just in our pockets, it's in our digits.
Financial Inclusion Challenges
- Over 1.7 billion adults globally remain unbanked, highlighting the importance of alternative money transfer services.
- Over 1.7 billion people globally remain unbanked, creating opportunities for alternative money transfer services.
Interpretation
The staggering statistic that over 1.7 billion adults worldwide are still unbanked serves as a wake-up call to the financial industry. With traditional banking systems failing to reach a significant portion of the population, alternative money transfer services have a ripe opportunity to step in and bridge the gap. This data not only highlights the pressing need for inclusive financial solutions but also emphasizes the importance of innovation and accessibility in the ever-evolving landscape of money transfer services.
Fintech Remittance Market Growth
- The digital cross-border payment market is expected to exceed $100 billion by 2022.
- Blockchain technology is increasingly being used for improving transparency and reducing costs in money transfers.
- Digital remittances are expected to grow by over 13% annually through 2025.
- Over 1 billion people globally are actively using mobile financial services, including mobile money and digital wallets.
- The digital remittance market is estimated to grow at a CAGR of over 24% from 2021 to 2026.
- The digital remittance market in Africa is forecasted to grow at a CAGR of 29% from 2021 to 2026.
- The cross-border payments market is projected to reach $27.5 trillion by 2026.
- The mobile money transaction value in Sub-Saharan Africa is set to surpass $700 billion by 2025.
- Global digital remittances are projected to grow at a CAGR of over 26% from 2021 to 2026.
- The remittance market in the Asia-Pacific region is expected to grow at a CAGR of 5.1% from 2021 to 2026.
- By 2024, mobile money users in emerging markets are projected to exceed 1.2 billion.
- The global fintech remittance market is estimated to reach $66.94 billion by 2026.
Interpretation
The money transfer industry is experiencing a digital revolution that is reshaping the way we send and receive funds across borders. With projections showing exponential growth in the digital cross-border payment market, it's clear that blockchain technology is playing a pivotal role in enhancing transparency and reducing costs. As more than 1 billion people worldwide embrace mobile financial services, the future of digital remittances looks promising with staggering growth rates. Africa stands out with a forecasted CAGR of 29%, while Sub-Saharan Africa is on track to surpass $700 billion in mobile money transactions. The fintech remittance market is set to soar to $66.94 billion by 2026, confirming that the future of money transfers is undeniably digital.
Global Remittances Outlook
- Global remittances are expected to reach $715 billion in 2019.
- By 2023, the global remittances market is projected to exceed $1 trillion.
- The largest recipient of remittances in 2018 was India, receiving over $79 billion.
- More than 70% of remittances to low and middle-income countries flow through money transfer operators.
- The top three corridors for remittances are the United States to Mexico, the United States to India, and the United Arab Emirates to India.
- The remittance market is highly fragmented, with thousands of companies operating worldwide.
- The Asia-Pacific region accounts for more than one-third of global remittance inflows.
- Brazil received over $2.6 billion in remittances in 2019, making it one of the top Latin American recipients.
- The United States is a major sender of remittances, with outflows totaling over $68 billion in 2018.
- The Middle East and North Africa region saw remittance inflows exceed $62 billion in 2019.
- The top sending countries of remittances in 2018 were the United States, the United Arab Emirates, and Saudi Arabia.
- Around 40% of remittance transactions are made through banks, while the rest go through money transfer operators and mobile wallets.
- The Philippines received over $34 billion in remittances in 2019, making it one of the top recipients in the world.
- Remittances to Latin America and the Caribbean region are projected to increase by 4.9% in 2021.
- India is the largest recipient of remittances in the world, with inflows reaching $83.1 billion in 2020.
- Remittances play a crucial role in the economies of low and middle-income countries, accounting for over 5% of GDP in some nations.
- The top remittance recipients in Europe are France, Germany, and Italy.
- The Asia-Pacific region accounted for over half of global remittance outflows in 2020.
- The Middle East and North Africa region saw a 2.3% increase in remittance inflows in 2020, reaching $56 billion.
- Remittances to low and middle-income countries are projected to reach $608 billion in 2022, a significant increase from previous years.
- In 2020, the Middle East and North Africa region received $55 billion in remittance inflows.
- The top sending countries for remittances in Europe are the United Kingdom, France, and Italy.
- African migrants in the diaspora sent an estimated $87 billion in remittances to the continent in 2020.
- Remittance inflows to South Asia saw a 2.6% increase in 2020, reaching $147 billion.
- Blockchain technology is expected to reduce global remittance costs by 50% by 2023.
- The top remittance-sending countries in Asia are the United Arab Emirates, Saudi Arabia, and Japan.
- Over 60% of remittances to Latin America come from the United States, followed by Europe and Canada.
- The top receiving countries in Southeast Asia are the Philippines, Vietnam, and Indonesia.
- More than 80% of remittances sent to Sub-Saharan Africa in 2020 were used for essential needs such as food and healthcare.
- Remittance flows to Nigeria reached $24.7 billion in 2018, making it the largest recipient in Africa.
- India received $83.1 billion in remittances in 2020, making it the top recipient globally for the past several years.
- Global remittance flows are expected to recover and reach $575 billion by the end of 2021.
- The average remittance transaction size in 2020 was $250, with the highest concentration in the United States, Saudi Arabia, and Russia.
- The top remittance-sending countries in Latin America are the United States, Spain, and Italy.
- South Asia received $147 billion in remittance inflows in 2020, with India being the largest recipient.
- In 2020, the global remittance market experienced a 7% decline due to the impact of COVID-19.
- The United States accounts for the largest share of global remittance outflows, with over $148 billion sent in 2020.
- The majority of remittances sent to Africa in 2020 were used for daily expenses, education, and healthcare.
Interpretation
In a world where money speaks louder than words, the global remittance industry is shaping up to be the economic Shakespeare of our time, with numbers dancing on the stage like never before. From India's lavish $79 billion ball to the United States and its tango with Mexico, India, and the UAE, the choreography of cash knows no bounds. In this grand masquerade, money transfer operators are the unsung heroes, orchestrating the moves of over 70% of remittances to low and middle-income countries. As the plot thickens with projections hinting at a $1 trillion climax by 2023, it seems the financial drama is just getting started. So let the show go on, and may the riches keep flowing in this riveting tale of global transactions.
