Three Major Digital Trends in Remittance Industry

Banking CIO Outlook | Monday, November 30, 2020

With the perforations of smartphones and mobile apps, digital payment convenience has gained popularity, with domestic economic trends playing a major role in it.

Fremont, CA: The advancements in the digital landscape are transforming the remittance market, pushing it towards an upward curve. The global remittance is predicted to touch $746 billion by the end of 2020, and the digital remittance space is anticipated to clock a CAGR of 11.75 percent between 2019-2024.

The elements that take part in the remittance sector are the changing customer demands, collaborations, and new technologies, and a robust compliance framework. Here are three digital trends driving the growth of the remittance industry:

Robust Compliance Framework

The emergence of digital remittances will possibly improve focus on allowing quick payments to insecure channels of remittances. A robust compliance framework is vital to make sure the security around digital money transfers and payments. Governments are also putting stricter regulatory frameworks to guarantee the digital remittance ecosystem is convenient, safe, and secure.

Customer Demands

Increasing incomes and swift urbanization are important for the importance of digital remittances. Consumers have embraced the digital money transfer market in low- and medium-income economies, and with the perforations of smartphones and mobile apps, the convenience of digital payment has gained popularity, with domestic economic trends playing a major role in it.

Collaborations and Newer Technologies

The money transfer and remittance industry rely on collaboration to flouring, playing a significant part in the cross-border payments sector. The basis for partnership is the capability of international money transfer organizations to provide brand recognition, industry knowledge, compliance framework, and an extensive customer base to scale while fintech companies introduce advanced technologies and flexibility. Additionally, the emergence of technology allows SMEs to expand their footprint in the money transfer and remittance sector due to the cost-effective and competitive cross-border payments model.

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