According to a recent report published by Allied Market Research, titled, Asia-Pacific digital remittance market by Remittance Type, Remittance Channel, and End User: Global Opportunity Analysis and Industry Forecast, 2018-2025, the Asia-Pacific digital remittance market was valued at $31,234 million in 2016, and is projected to reach at $215,817 million by 2025, growing at a CAGR of 24.2% from 2018 to 2025.
Rise in cross-border transactions & mobile-based payment channels, reduced remittance cost & transfer time, and increase in adoption of banking & financial services majorly contribute towards the growth of the market. However, slowdown of the remittance industry in Asia-Pacific and lack of awareness about using digital channels to remit money hamper the Asia-Pacific digital remittance market growth.
Based on remittance type, inward digital remittance segment dominated the market in 2016, and is expected to continue this trend during the forecast period, owing to initiatives taken by the government of different countries to boost digital penetration of inward remittances in this region. Furthermore, the outward digital remittance segment is expected to grow at the highest CAGR during the forecast period, owing to increase in engagement of people in this region with their overseas counterparts for business, leisure, education, medical, entertainment-related activities, which involve transfer of money overseas.
The Asia-Pacific digital remittance market was led by China in 2016, and is projected to maintain its dominance during the forecast period. However, Singapore is expected to witness the highest growth, owing to the emergence of number of remittance technology start-ups in Singapore and widespread use of communication applications or social networking among foreign workers.
Key Findings of the Asia-Pacific Digital Remittance Market:
- By remittance type, outward digital remittance segment is expected to exhibit significant growth in the Asia-Pacific digital remittance market during the forecast period.
- In 2016, China accounted for the highest revenue among the other regions.
- Based on remittance channel, the money transfer operators (MTOs) segment generated the highest revenue in 2016.
- By end user, personal segment is anticipated to exhibit substantial growth during the forecast period.
Some of the key market players profiled in the report include InstaReM, Remitly, Inc., Flywire, SingX Pte Ltd., Azimo Limited, WorldRemit Ltd., TransferWise Ltd., Ripple, MoneyGram, and TNG Wallet.