Digital cross-border remittances are set to increase by 133 billion over the next five years, a new report from Juniper Research reveals.
Digital Money Transfer & Remittances: Vendor Strategies, Opportunities and Market Forecasts 2021-2025 Market Research suggests growth will foster competition as players seek to grab a bigger piece of a bigger pie. A good strategy would be to adopt less rigid business models which provide fast and affordable service.
Digital remittances increased over the past 18 months and most customers will retain the practice when the pandemic is over, the authors suspect. That belief is supported by data showing digital revenue increased as overall revenue went the other way. The active user base could grow to 95 million by 2025, up from 57 million today. Numbers like these should drive additional tech investment and market entrants. Best to develop a differentiation strategy now or risk getting lost in a growing crowd.
“Growth in acquisitions and partnerships will be inevitable, as competition in the remittance market intensifies,” research author Susannah Hampton said. “Players must act quickly to differentiate themselves. Forging synergistic partnerships will allow them to seize new business opportunities by securing a broader reach and will offer them the best chance to achieve top-line growth and profitability.”