Migrant remittances expected to total $300bn by 2021

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  • P2P money transfers via online and mobile expected to exceed $300bn by 2021
  • International transfers through traditional platforms estimated to top $600bn in 2018
  • Study also found traditional channels working to expand digital footprint

Juniper Research has just released the results of a new study that estimates P2P transfers from migrant workers sent via online and mobile platforms will exceed $300bn globally by 2021. This estimate is a sharp increase from the expected $225bn in mobile and online remittances in 2018.

In their report, Juniper says that international money transfers via traditional banks and payment services will top $600bn this year, meaning that the online and mobile share of the market will reach 36% of total remittances this year and increase to roughly 44% by 2021.

Traditional transfer services are working to grow their digital footprint and are starting to benefit from these expanded customer offerings. Juniper expects the top four payments operators to increase their market share over the next several years.

For digital-only platforms, such as Xoom, WorldRemit and TransferWise, the growth is slower but steady. The Juniper report indicates that these digital disruptors and others like them will see their market share increase to nearly 12% by the end of 2018.

Blockchain technology will also play a role in international payments, according to Juniper, and will experience significant influence on the transfer market. The savings offered to consumers through blockchain solutions is a contributing factor, with most transactions hitting or just below the 3% fee target.

Nitin Bhas, one of the study's authors, said: "This will result not only in more 'grey' remittance transferring to official channels, but also a net increase in remittance flows, helping to boost economies which are in part dependent upon remittances from migrant workers."

 


Nigel Frith
Nigel Frith
Global General Manager
Daniel is Founder and CEO at FXcompared and has numerous years of experience in the international finance world, especially within the media, technology and property sectors. Daniel is passionate… Read more

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