Migrant workers to transfer $300bn via digital remittance channels by 2021, says Juniper Research

Nitin Bhas

A new study from Juniper Research has found that international digital P2P remittances conducted via mobile and online platforms will exceed $300 billion (€243.91 billion) globally by 2021, up from an estimated $225 billion (€182.93 billion) in 2018.

The new research, Digital Money Transfer & Remittances: Domestic & International Markets 2018-2022, estimates that total international remittances via formal channels will exceed $600 billion (€487.81 billion) in 2018. This means that international remittances conducted via mobile and online services will be 36% of formal remittance by value in 2018, growing to 44% by the end of 2021.

Traditional MTOs lead as digital players gain market share

The research found that traditional money transfer operators are expanding their digital footprint and, indeed, benefitting from their much delayed expansion into digital payments. Juniper forecasts that the combined market share for the top 4 money transfer operators will continue to increase over the next 4 years, reaching 39% of total formal remittances by 2022.

Meanwhile, digital-only challenger players such as TransferWise and Xoom are witnessing slow but increasing market share and revenue growth. Juniper estimates that the combined market share for digital disruptors such as TransferWise, Xoom, Remitly and WorldRemit, in terms of formal remittance transactions processed, will increase from 2.5% in 2015 to 12% in 2018.

Blockchain to transform remittances

The report also found that blockchain will have a significant role to play in the future evolution of transaction settlement solutions, with almost 1 in 3 of the proposed use cases for blockchain revolving around settlement and payments. Savings enabled by blockchain solutions will be passed on to consumers and enable transactions at or below the 3% average cost of remittances targeted.

Research author Nitin Bhas added: “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”.

Juniper Research is acknowledged as the leading analyst house in the Fintech & Payments sector, delivering pioneering research into payments, banking and financial services for more than a decade.

For more insights, download our free whitepaper – Why 2018 Is The Year Of Social Payments.

Comment on this article below or via Twitter: @IoTNow_OR @jcIoTnow

FEATURED IoT STORIES

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, iot home automation is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more
RECENT ARTICLES

Vertiv Research defines standard models for deploying edge infrastructure

Posted on: October 19, 2021

Vertiv, a global provider of critical digital infrastructure and continuity solutions, released the results of an in-depth research project to identify edge infrastructure models to help organisations move toward a more standardised approach to edge computing deployments, with the intent to improve costs and deployment times.

Read more

Nuuday infuses AI into customer experience with the Avaya OneCloud experience platform

Posted on: October 19, 2021

Nuuday, Denmark’s provider of broadband, communication and entertainment services, has launched “Josefine,” an AI-powered voicebot capable of delivering dynamic, immediate and personalised experiences for customers interacting through its Avaya OneCloud communications and collaboration platform.

Read more