- The global remittance market is to be worth $850bn before the end of the decade, according to a new Valuates Report.
- Several key trends are driving growth, including the pandemic, globalisation and the desire for greater transparency.
- Annual growth of 2.8% is expected through 2028 as online payments increase access to financial services even in less populated, rural locations.
A new Valuates Report has found that the global remittance market will be worth $850bn by 2028 amid strong annual growth for the broader online money transfer industry.
The market for non-commercial money transfers will already be valued at $720bn by the end of this year, but a number of factors will drive further growth during the next six years.
These include a surge in mobile payment channels that facilitate cross-border transactions and a reduction in the average transaction costs of remittances.
Globalisation is also a key factor as more workers are moving overseas to secure higher-paying jobs in busy urban areas.
These workers demand fast money transfers, which is one of the inherent advantages of using mobile apps and other forms of electronic payments.
The pandemic has also been a major factor as it prompted a shift away from traditional channels to more accessible channels online.
The increased uptake of online services is fuelling growth at a time when these channels are shown to be secure and transparent.
These trends are all helping to fuel a global remittance market that is set to grow 2.8% each year between 2022 and 2028, according to the Valuates Report.
The new study provides further evidence of how the online payment industry is thriving, which bodes well for brokers offering remittance services.
You can find out more about this sector by navigating to our money transfer reviews pages, which provide in-depth coverage of leading brokers.
