Digital cross-border remittances to reach $428bn in 2025
A new report from Juniper Research has found that digital cross-border remittances will grow from $295bn in 2021 to $428bn in 2025, with digital transactions returning to pre-pandemic values by 2022. It found that the digital remittance market has been largely resilient to the global pandemic; forecasting continued growth for digital remittance revenue over the next 5 years.
The new research, Digital Money Transfer & Remittances: Vendor Strategies, Opportunities and Market Forecasts 2021-2025 Market Research, predicts that this growth will drive competition in the market, as incumbents and new entrants seek to grow market share. In response, the report urges remittance providers to implement adaptable business models that provide fast and affordable services.
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The Battle to Leverage a Growing User Base
The research predicts that the uplift in digital remittance use driven by the pandemic will be sustained through permanent changes to user behaviour. This is supported by the reported growth in digital revenue from major remittance players in 2020, despite overall revenue declines.
Additionally, it anticipates that the active user base for digital remittances will increase by 66%; reaching 95 million by 2025, from 57 million in 2021. With the rise in adoption of digital payments, traditional players will continue to invest heavily in digital offerings, with many digitally native players continuing to adopt aggressive pricing strategies or promotional discounts on remittance services.
Stakeholders Must Act Now to Remain Competitive
The study found that the cross-border remittance market has become increasingly crowded and it will become crucial for players to differentiate themselves and add value to their service propositions.
Research author Susannah Hampton explained: ‘Growth in acquisitions and partnerships will be inevitable, as competition in the remittance market intensifies. Players must act quickly to differentiate themselves. Forging synergistic partnerships will allow them to seize new business opportunities by securing a broader reach and will offer them the best chance to achieve top-line growth and profitability.’
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Digital Money Transfer & Remittances Market Research: https://www.juniperresearch.com/fintech-payments/digital-money-transfer-research
