Global Remittance Market recovers from pandemic-induced slump and shifts towards Digitization

Makreo Research has released a study on the Global Remittance Market, titled "Impact of Corona Virus (COVID-19) Over Global Remittance & Payments Market Outlook to 2025." According to the report, despite the pandemic's adverse effects on the global economy, the remittance flow only fell by 1.6% in 2020 compared to the previous year, with India, China, Mexico, the Philippines, and the Arab Republic of Egypt being the top five remittance recipients in current USD terms in 2021. The study also revealed that remittances to low- and middle-income countries are expected to increase by 7.3% in 2021, thanks to the resilience of remittances in 2020 and higher oil prices that boosted economic recovery and spurred the surge in remittances from the Gulf Cooperation Council (GCC) countries.

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► Increasing Digitization Leads to Changes in Remittance Payments
The report highlighted that the changing environment of cross-border payments is directly driven by the rapid change in customer needs. The study found that digital channels are gaining popularity as a medium for remittance payments due to increased digitization and smartphone penetration, especially in emerging nations. However, the study also noted that several Central Asian countries are heavily reliant on Russian remittances, and the revised anticipated growth rates of remittances in Central Asia in 2022 is expected to decline.

► COVID-19 Pandemic Underscores the Importance of Digitalization
The COVID-19 pandemic lockdown hindered the business of money transfer operators (MTOs), which rely on migration, highlighting the need for digitalization in service delivery. However, the study noted that a more significant factor that disrupts remittance flows is the disproportionate loss of income experienced by migrants who have become stuck in countries of destination or returned, only to find little prospect of economic activity in their areas of origin, which are also affected by economic stagnation.

► Increasing Number of Migrant Students and Internet Penetration
The study also found that there is an increasing number of migrant students across the globe. The leading destinations for migrant students are the United States, Canada, and the United Kingdom. In 2021, Canada recorded around 450,000 new study permits, and the internet penetration rate in India increased to about 45% in 2021. As of January 2022, the total number of internet users globally stood at 4.95 billion, equivalent to 62.5% of the total world population.

► Adoption of Cryptocurrency and DLT-Based Solutions
The study also revealed that crypto is expected to constitute a significant share in global annual remittances in the future, and the use of cryptocurrency is rising due to its unique characteristics for cross-border transfers. Additionally, the study found that Distributed Ledger Technology (DLT)-based solutions, such as RippleNet, can significantly reduce inefficiencies and costs in the global money remittance system, enabling banks and payment systems to connect to new DLT-based payment infrastructures to process cross-border transactions of foreign exchange remittance.

In conclusion, the study on the Global Remittance Market provides valuable insights into the impact of COVID-19 on the industry and the changing dynamics of cross-border payments, highlighting the need for increased digitization and the adoption of innovative solutions to address inefficiencies and reduce costs.

Find out more:- https://www.makreo.com/report/global-money-remittance-market-report-forecast-2022-2027

Remittance related similar reports:-
• https://www.makreo.com/report/saudi-arabia-remittance-market-future-outlook-to-2027

• https://www.makreo.com/report/philippines-money-remittance-market-outlook-to-2027-covid-19-impact-assessment

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This release was published on openPR.