According to a new report published by Allied Market Research, titled, "Asia-Pacific Digital Remittance Market by Remittance Type (Inward Digital Remittance, and Outward Digital Remittance), and Remittance Channel (Banks, Money Transfer Operators (MTOs), and Others): Opportunity Analysis and Industry Forecast, 2019–2026", the Asia-Pacific digital remittance market was valued at $49.85 billion in 2018, and is estimated to reach $269.78 billion by 2026, registering a CAGR of 23.5% from 2019 to 2026. China was the highest contributor to the Asia-Pacific digital remittance market in the analyzed period.
Digital remittance is defined as the sending of money by foreign migrants to their native countries by using digital transfer network such as e wallet, easy-to-use mobile application, and others. The market witness’s entry of digital remittance operators, which poses a serious challenge to traditional cash-in-hand providers due to reduced user fees and ease of usability. Numerous benefits of using digital remittance such as convenience, speed, lower cost, elimination of the need for tedious form-filling processes, agents, and codes and others, have shifted the focus of consumers toward digital transactions for money remittance.
Increase of the remittance industry in the developing counties of Asia-Pacific, is expected to fuel the growth of the Asia-pacific digital remittance market trends. Furthermore, increase in cross-border transactions and move toward cashless payments, mobile banking, and mobile-based payment solutions dominate the growth of the digital remittance market in Asia-Pacific. However, lack of awareness of digital payments in the region restrict the Asia-pacific digital remittance market growth.
Conversely, technological innovations in the digital remittance industry in this region primarily to provide user-friendly apps and smarter ways to connect to domestic payment systems is expected to provide opportunities for the Asia-pacific digital remittance market growth. In addition, increase in number of internet and mobile users in Asia-Pacific provides an opportunity to boost the digital remittance market during the forecast period.
The outward digital remittance segment is expected to be the largest contributor to the Asia-Pacific digital remittance market forecast period. The key players of the market are providing innovative, automated platforms to offer transparent international money transfers at a fraction of costs as compared to the traditional players, which helps to increase penetration of digital channels for outward remittance.
Based on country, China occupied the largest contributor Asia-pacific digital remittance market share, owing to the major shift towards digital payment, and the market players of China are focusing on the launch of electronic cross-boundary remittance services. In addition, the significant growth of digital remittance in China owing to lower fees by the remittance service provider makes the process of sending and receiving money much easier than the traditional method.
Key Findings of the Study:
- Depending on remittance type, the outward digital remittance segment is projected to grow at the highest rate during the forecast period.
- Banks is anticipated to dominate the market in 2018, and is anticipated to continue this trend throughout the forecast period.
- Banks contributed the largest revenue in 2018 to the Asia-Pacific digital remittance market size.
The key players operating in the Asia-Pacific digital remittance market industry include InstaReM, Remitly, Inc., Flywire, SingX Pte Ltd., Azimo Limited, WorldRemit Ltd, TransferWise Ltd, Ripple, MoneyGram, and TNG Wallet. The other players of the Asia-Pacific digital remittance market analysis (not included in this report) are Western Union (WU), Ria Financial Services, Coins.ph, Toast, OrbitRemit, Avenues India Pvt Ltd, FlyRemit, and WeChat Payment.