Singapore Remittance Market Volume Expected to Reach $13.34 Billion by 2032 - Allied Market Research

According to a recent report published by Allied Market Research, titled, “Singapore Remittance Market by Type, Channel, Application, Mode, and End User: Country Opportunity Analysis and Industry Forecast, 2022-2032.”  

The Singapore remittance market volume was valued at $8.05 billion in 2022, and is projected to reach $13.34 billion by 2032, growing at a CAGR of 5.2% from 2023 to 2032. Also, the Singapore remittance market value was $0.58 billion in 2022, and is projected to reach $0.83 billion by 2032, growing at a CAGR of 3.7% from 2023 to 2032.

The major purpose of remittance is to ensure security of money during money transfer from one country to another. In addition, many financial institutions across Singapore have adopted remittance services to provide customer with transparency, a richer and data-driven ecosystem, and an efficient network of partners.

Furthermore, the key factor that drives the Singapore remittance includes rise in mobile-based payment channels and cross-border transactions and decrease in remittance transfer time & cost drives the growth of the remittance market. In addition, growth in adoption of banking & financial sectors across Singapore fuels growth of the Singapore market in the country. However, rise in number of financial crimes and lack of awareness about digital remittance is expected to impede the remittance market. Furthermore, technological advancements in the digital remittance industry is expected to provide lucrative opportunities for the Singapore remittance market growth.

On the basis of application, the consumption segment contributed for a major share in 2022 in the market. It is primarily driven by the substantial emigrant population, overseas education expenses, tourist spending, and family support, all of which necessitate frequent cross-border money transfers. On the other hand, the investment segment is expected to witness fastest growth during in the Singapore market the upcoming years due to Singapore's reputation as a global financial center, attracting foreign investors seeking opportunities for wealth creation and capital appreciation, thus driving the demand for investment-related remittances.      

Under the conditions of COVID-19, Singapore implemented lockdowns & shutdowns of retail stores and other physical locations providing utility services. This led to migrants and people working in the country to leave the country and go back to their home country.  However, people staying in the country had to send and receive money from their home country while led to increase in the demand for the payment remittance services in the country. Therefore, the COVID-19 had a moderate impact on the Singapore remittance market trends.

Key Findings of the Study

• By type, the outward remittance segment led the market in terms of revenue in 2022.
• By application, the consumption segment accounted for the highest market share in the Singapore remittance industry in 2022.
• By mode, the Customer to Customer (C2C) segment led the highest revenue in the Singapore remittance market size in 2022.
• By end user, migrant labor workforce segment generated the highest revenue in the Singapore remittance market share in 2022.

The key players profiled in the Singapore remittance market analysis are DBS Bank Ltd, Nium Pte. Ltd. (Instarem), JPMorgan Chase & Co., MoneyGram, Revolut Ltd, Continental Exchange Solutions, Inc. (Ria Financial Services Ltd.), SingX Pte Ltd., Wise Payments Limited (Transferwise Ltd), Western Union Holdings, Inc., and WorldRemit. These players have adopted various strategies to increase their market penetration and strengthen their position in the market.