Global Remittance Market Trends
An increase in international trade and mobile-based payment methods
The market for person-to-person (P2P) transfers across borders is enormous. In 2018, it grew by double digits due to consumers moving abroad in pursuit of better economic prospects and to avoid the political and financial unrest back home.
Often, the migration pattern is one family member moving away from home to work on an oil rig in Kuwait, a construction site in the United States, or as a live-in daycare provider in Singapore, leaving the other family members behind. Remittances are essential to transferring money in situations like these, especially for people who have permanently left their home country but still wish to assist an extended family there. They also provide a significant economic benefit to the receiving nation.
Chance
They are creating solutions for underserved markets. In the foreseeable future, it is anticipated that the digital economy will expand quickly. At a compound annual growth rate (CAGR) of 18.9%, the Internet economy in Southeast Asian nations is projected to reach $200 billion by 2025, from $50 billion in 2017. Businesses can maximize innovation and build new services for customers thanks to the development of 5G and APIs. Financial inclusion has a lot of potential in the rural sector. Southeast Asia's rural population is about 63% of the total population. When taken as a whole, these elements show a market for payment service providers. Service providers can expand the payments ecosystem through agent network collaboration to provide financial solutions for the impoverished.