Digital Remittance Market Size, Share, Growth Analysis, By Type(Inward Digital Remittance and Outward Digital Remittance), By Channel(Banks, Money Transfer Operators, Online Platforms, and Others), By End-use(Migrant Labor Workforce, Personal, Small Businesses, and Others), By Region - Industry Forecast 2024-2031

Global Digital Remittance Market size was valued at USD 19.65 Billion in 2022 and is expected to grow from USD 22.72 Billion in 2023 to reach USD 72.44 Billion by 2031, at a CAGR of 15.60% during the forecast period (2024-2031). 

The market expansion can be ascribed to the rise in family-to-family money transfers by migratory workers. Additionally, it is anticipated that throughout the course of the forecast period, the volume of cross-border transactions and the use of mobile-based payment channels would both increase. According to the GSM Association, mobile money was used to handle cross-border payments of about USD 12.7 billion.

The growth of digital transfer platforms should cause customers to choose online transactions. The popularity of electronic devices in cross-border payments & remittance services has also been aided by the rise in mobile device usage over the past few years. Due to how fast and inexpensively they can transmit money, customers across the world are switching to digital remittance services. Additionally, digital remittance service providers provide their clients great degrees of financial security and anonymity.

The entire process of transferring money was expensive and time-consuming due to the mediators' never-ending chains, extra fees, and paperwork. But the introduction of digital remittance services has made it possible for companies and clients to benefit from faster, more inexpensive, and value-added services for transferring money. Due to increased market competition, the costs associated with money transfers have significantly decreased.

A number of regulators have been driven to pay heed to and regulate the digital remittance business due to the growing popularity of digital remittance networks amongst low-wage migrant workers that utilize these services to send cash to their family. Additionally, international remittances contribute significantly to the growth of emerging markets' economies. As a result, authorized regulators oversee and manage money transfer fees to entice users to keep using digital remittance services in order to support the economic development of their home nation. Over the course of the forecast, these variables are anticipated to support market expansion.

The high transfer fees and lack of knowledge about digital remittance services, however, are anticipated to impede the growth of the industry. Additionally, security barriers including money laundering and terrorism funding may have a detrimental effect on the market's growth prospects during the forecast period. The market is probably going to gain from the expanding acceptance & simplicity of digital payments during the course of the projected period.

US Digital Remittance Market is poised to grow at sustainable CAGR for the next forecast year.