This BI Intelligence report analyzes the global remittance market with its various players – both old and new – and discusses what the future might bring.
Here are some of the key takeaways from the report:
- The global remittance industry is massive and yet still growing — remittances are expected to reach $615 billion by 2018 up from $575 billion in 2016, according to the World Bank.
- Digital-first challengers have entered the remittance industry in force — Remitly processed $2 billion in transfers in 2016, which is essentially double its annualized volume in the previous year, WorldRemit now processes over 500 thousand transactions a month, and Transferwise now transfers over £800 million ($1 billion) a month.
- Meanwhile, legacy firms have not stood idly by — in 2016, Western Union got 8% of its consumer-to-consumer transfer revenue via its digital channel, up from 5% in 2014.
- A major catalyst for evolution in the industry is likely to come in 2017 with the potential acquisition of MoneyGram. In May, Ant Financial, owner of Chinese payment platform Alipay, agreed to buy MoneyGram for $1.2 billion in the firm’s first deal with a publicly listed US company.