Singapore Remittance Market Research, 2032
The Singapore remittance market volume was valued at $8,056.63 million in 2022 and is projected to reach $13,348.60 million by 2032, growing at a CAGR of 5.2% from 2023 to 2032. Furthermore, the Singapore remittance market value was valued at $528.04 million in 2022 and is projected to reach $836.76 million by 2032, growing at a CAGR of 3.7% from 2023 to 2032.
Remittance refers to the process of sending money from one place, often a foreign country, to another, typically to support family members or for personal financial needs. In Singapore, the remittance market has been steadily growing due to the presence of a large expatriate population and its status as a global financial hub. The scope for further growth in the remittance market in Singapore remains favorable, driven by continued economic development, international migration, and the need for cross-border financial transactions. In addition, advancements in digital banking and fintech services have facilitated easier and more efficient remittance options, contributing to the market's expansion.
Rise in cross-border transactions and move toward mobile banking and mobile-based payment solutions dominate payment trends in Singapore is expected to drive growth of the Singapore remittance market. In addition, rise in international commerce, migration, and changing economic trends in Singapore drives growth of the Singapore remittance market. In addition, growth in adoption of banking & financial sectors in Singapore fuels growth of the market.
However, rise in number of financial crimes and lack of awareness regarding digital remittance is expected to impede the market growth. On the contrary, technological innovations in the digital remittance industry in Singapore primarily to provide user-friendly apps and smarter ways to connect to domestic payment systems is expected to provide growth opportunities for the market.
On the basis of type, the outward remittance segment gained the highest Singapore remittance market share in 2022. This is attributed to the fact that the market is driven by the significant number of foreign workers and expatriates in Singapore who regularly send money back to their home countries. In addition, Singapore's robust financial infrastructure and ease of conducting international transactions make it convenient for individuals and businesses to send funds abroad, further boosting this segment's market share. On the other hand, the inward remittance segment is forecasted to be the fastest growing segment during the forecast period in the market. This growth can be attributed to Singapore's strong position as a global financial hub, attracting foreign investment and talent. As more international companies and professionals relocate to Singapore, there is an increased flow of funds into the country. In addition, government initiatives and policies aimed at facilitating cross-border transactions are expected to further accelerate the growth of the inward remittance segment.
The report focuses on growth prospects, restraints, and trends of the Singapore remittance market. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the Singapore remittance market share
The Singapore remittance market is segmented on the basis of type, channel, application, mode, and end use. By type, it is divided into inward remittance and outward remittance. By channel, it is segmented into banks, money transfer operators, and others. In terms of application, it is classified into consumption, savings, and investment. On the basis of mode, the market is segmented into Business-to-Business (B2B), Business-to-consumer (B2C), Consumer-to-Business (C2B), and Customer-to-Customer (C2C). By end user, it is divided into migrant labor workforce (blue collar workforce and white collar workforce), low-income households, small businesses, and others.
The report analyses the profiles of key players operating in the Singapore remittance market such as 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 Singapore remittance industry.
Banks segment accounted for the highest market share in 2022.
COVID-19 Impact Analysis
COVID-19 had a significant impact on the Singapore remittance market analysis, as many foreign workers in Singapore send money back to their home countries, but the pandemic led to job losses and reduced incomes, making it harder for them to send money home. In addition, lockdowns and travel restrictions slowed down remittance services, affecting the flow of money. On the other hand, digital remittance services witnessed a boost as people turned to online options for safety. Therefore, COVID-19 made it tougher for foreign workers to remit money, but it also accelerated the shift toward digital remittance solutions in the Singapore remittance market.
Top Impacting Factors
Rise in Cross-border Transactions and Mobile-based Payment Channels in Singapore
Rise in cross-border transactions and move toward mobile banking and mobile-based payment solutions dominated payment trends in Singapore remittance market, which is expected to drive growth of the market. In addition, the market is witnessing growth, owing to increase in foreign trade, migration, and shift in economic patterns across the country. In addition, new developments in cross-border payments are the prospect of making real-time international payments a reality. Furthermore, a number of banks are striving to deliver timely cross-border remittances and value-added services using a relationship-centric approach, which fuel growth of the market. For instance, in Singapore, smartphone use and the popularity of digital access points for remittances, such as alternative payment methods (APMs), have generated new expectations that incumbents are striving to satisfy. Thus, this factor propels growth of the Singapore remittance market size.
Growth in Adoption of Banking & Financial Services in Singapore
The increasing adoption of banking and financial services in Singapore plays a pivotal role in driving the growth of the Singapore remittance market. Singapore's status as a global financial hub has led to a rising number of bank accounts and financial service users. This growth in financial inclusion and sophistication has made it easier for individuals and businesses to access remittance services, leading to greater participation in both outward and inward remittances. Moreover, the use of digital banking and fintech solutions has streamlined remittance processes, making transactions more efficient and cost-effective. Therefore, the expanding adoption of banking and financial services in Singapore is a key driver behind the growing Singapore remittance market.
Rise in Number of Financial Crimes
The rise in the number of financial crimes poses a significant restraint for the Singapore remittance market. Regulatory authorities in Singapore have implemented stringent anti-money laundering (AML) and counter-terrorism financing (CTF) measures to combat illicit financial activities. While these regulations are essential for maintaining the integrity of the financial system, they can create operational challenges for remittance service providers. Compliance with these rules requires increased due diligence, reporting, and monitoring, which can lead to higher operational costs. Therefore, the Singapore remittance may face a higher compliance burden and decreased profitability, potentially impacting its ability to offer competitive rates and services to customers.
Customer-to-Customer (C2C) segment accounted for the highest market share in 2022.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the Singapore remittance market forecast from 2022 to 2032 to identify the prevailing.
- Market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the Singapore remittance market outlook assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global Singapore remittance market trends, key players, market segments, application areas, and market growth strategies.
Singapore Remittance Market Report Highlights
By End User
By Key Market Players
The primary driver for the growth of the remittance market in Singapore is the country's status as a major global financial and economic hub. Singapore's strong economy, political stability, and advanced financial infrastructure make it an attractive destination for both foreign workers and investors. This has led to a significant inflow of emigrants and foreign professionals, who regularly send money to their home countries. In addition, Singapore's robust investment environment attracts foreign investors, contributing to the growth of investment-related remittances. Thus, the combination of a diverse emigrant population and an attractive investment climate makes Singapore a key player in the remittance market.
In addition, leading remittance companies in Singapore are adopting various key strategies to develop and grow the market landscape. For instance, in February 2023, India’s Unified Payments Interface (UPI) and Singapore’s PayNow partnered together to boost cross-border transactions. This partnership aims at making cross-border payments available , cutting payment costs and ensuring easy money transfer. Moreover, Indians can avail the facilities via Paytm and Google Pay in Singapore.
In addition, the project aims to increase financial transactions for Indian migrant workers and students living in Singapore. Therefore, such strategies adopted by the market players will help the remittance market to witness significant growth in the upcoming years. Some of the key players profiled in the report include 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 industry.