The total volume of international digital remittances will exceed 2-billion globally in 2027, from just over 1,1 billion in 2022.
A new study from Juniper Research predicts this growth will be accelerated by the increasing speed and low cost of digital remittances versus traditional agent-based services.
The report uncovered that costs are being driven down rapidly by a very competitive environment; making differentiation difficult for vendors in the space.
The research identified the world’s leading digital remittance providers by evaluating their offerings, and the key factors that have led to their respective success.
The top five vendors were ranked as Western Union, Wise, Ria, MoneyGram and InstaReM.
Research co-author Damla Sat explains: “Juniper Research has ranked Western Union as leading in the global digital remittances market, based on its highly successful transition into the digital arena, whilst maintaining strong partnerships. Vendors aiming to compete must continue to build out their partnership networks with local financial institutions and networks to increase currencies supported, as well as challenging very closely on price.”
The research also found that mobile remittances will account for over 73% of all digital remittances globally by 2027; up from 67% in 2022. It identified mobile remittances as key to future growth, with funding via digital wallets and integration within superapps becoming key differentiators.
The study recommends cross-border remittance providers focus on offering a compelling user experience, by providing easy tracking of payments and convenient funding options; given the increased commoditisation of services. It also identified partnerships with superapps, where multiple services including payments and e-commerce are available in one app, as the clearest way to ensure success in markets where superapps dominate.