Remittance fees when using cash were relatively expensive, but not the highest in the world. This is according to a Statista estimate that aims to compare the prices charged for sending international money transfers across the world. Remitting towards any country in the world incurred an average cost of roughly **** percent over the course of 2023 if they involved a bank account transfer. Mobile money was cheaper compared to the other payment instruments, but its costs grew relatively fast in 2023.

The most expensive countries in the world to send remittances to largely consisted of countries in Sub-Saharan Africa as of the third quarter of 2023. This is according to an average taken from different situation in which consumers send money worth 200 U.S. dollars from one country to the next - including cash, MTOs (money transfer organizations) or cards. The source adds that incoming remittances were estimated at 6.39 percent on average for the G20 countries during this timeframe.

Jordan JO: Average Transaction Cost of Sending Remittances from a Specific Country data was reported at 4.571 % in 2017. This records an increase from the previous number of 3.827 % for 2016. Jordan JO: Average Transaction Cost of Sending Remittances from a Specific Country data is updated yearly, averaging 4.199 % from Dec 2016 (Median) to 2017, with 2 observations. The data reached an all-time high of 4.571 % in 2017 and a record low of 3.827 % in 2016. Jordan JO: Average Transaction Cost of Sending Remittances from a Specific Country data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Jordan – Table JO.World Bank.WDI: Payment System. Average transaction cost of sending remittance from a specific country is the average of the total transaction cost in percentage of the amount sent for sending USD 200 charged by each single remittance service provider (RSP) included in the Remittance Prices Worldwide (RPW) database from a specific country.; ; World Bank, Remittance Prices Worldwide, available at http://remittanceprices.worldbank.org; Unweighted average;

South Africa ZA: Average Transaction Cost of Sending Remittances from a Specific Country data was reported at 16.571 % in 2017. This records a decrease from the previous number of 16.951 % for 2016. South Africa ZA: Average Transaction Cost of Sending Remittances from a Specific Country data is updated yearly, averaging 17.731 % from Dec 2011 (Median) to 2017, with 7 observations. The data reached an all-time high of 20.560 % in 2012 and a record low of 15.190 % in 2015. South Africa ZA: Average Transaction Cost of Sending Remittances from a Specific Country data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s South Africa – Table ZA.World Bank.WDI: Payment System. Average transaction cost of sending remittance from a specific country is the average of the total transaction cost in percentage of the amount sent for sending USD 200 charged by each single remittance service provider (RSP) included in the Remittance Prices Worldwide (RPW) database from a specific country.; ; World Bank, Remittance Prices Worldwide, available at http://remittanceprices.worldbank.org; Unweighted average;

Mexico MX: Average Transaction Cost of Sending Remittances to a Specific Country data was reported at 4.469 % in 2017. This records a decrease from the previous number of 6.354 % for 2016. Mexico MX: Average Transaction Cost of Sending Remittances to a Specific Country data is updated yearly, averaging 5.560 % from Dec 2011 (Median) to 2017, with 7 observations. The data reached an all-time high of 6.354 % in 2016 and a record low of 4.410 % in 2013. Mexico MX: Average Transaction Cost of Sending Remittances to a Specific Country data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Mexico – Table MX.World Bank.WDI: Payment System. Average transaction cost of sending remittance to a specific country is the average of the total transaction cost in percentage of the amount sent for sending USD 200 charged by each single remittance service provider (RSP) included in the Remittance Prices Worldwide (RPW) database to a specific country.; ; World Bank, Remittance Prices Worldwide, available at http://remittanceprices.worldbank.org; Unweighted average;

Sending remittances to Cuba was twice as expensive in the first quarter of 2024 than to other countries in Latin America, such as Brazil or Dominican Republic. This is according to an average taken from different situation in which consumers send money worth *** U.S. dollars from one country to the next - including cash, MTOs (money transfer organizations) or cards.

As of 2021, Côte d’Ivoire was the African country with the lowest costs incurred on remittances sent. The charges for a money transfer of *** U.S. dollars in the country amounted to *** percent of the sum sent, on average. Senegal and Rwanda followed, with costs corresponding to *** percent and *** percent of the amount sent, respectively.

Liberia LR: Average Transaction Cost of Sending Remittances to a Specific Country data was reported at 5.536 % in 2017. This records an increase from the previous number of 5.535 % for 2016. Liberia LR: Average Transaction Cost of Sending Remittances to a Specific Country data is updated yearly, averaging 5.179 % from Dec 2012 (Median) to 2017, with 6 observations. The data reached an all-time high of 5.536 % in 2017 and a record low of 5.035 % in 2015. Liberia LR: Average Transaction Cost of Sending Remittances to a Specific Country data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Liberia – Table LR.World Bank: Payment System. Average transaction cost of sending remittance to a specific country is the average of the total transaction cost in percentage of the amount sent for sending USD 200 charged by each single remittance service provider (RSP) included in the Remittance Prices Worldwide (RPW) database to a specific country.; ; World Bank, Remittance Prices Worldwide, available at http://remittanceprices.worldbank.org; Unweighted average;

Remittance Market Outlook

The global remittance market size was valued at USD 701.93 billion in 2023 and is projected to reach USD 1.08 trillion by 2032, growing at a compound annual growth rate (CAGR) of 4.9% from 2024 to 2032. The growth of this market is driven by increasing migration trends, technological advancements, and rising demand for convenient and cost-effective money transfer services. The expansion of digital platforms and mobile wallets has significantly contributed to the ease and speed of cross-border money transfers, providing a robust foundation for market growth.

A significant growth factor contributing to the expansion of the remittance market is the increasing global migration rates. Economic disparities and the pursuit of better employment opportunities have led to a rise in the number of people moving to different countries. These migrants often send money back to their home countries to support their families, driving the demand for remittance services. Additionally, humanitarian reasons and international aid are playing essential roles in boosting remittance flows to regions in need.

Technological advancements have been another critical driver of growth in the remittance market. The advent of digital payment platforms and fintech innovations has revolutionized the way money is transferred across borders. These technological solutions offer faster, cheaper, and more secure transaction methods compared to traditional banking systems. Fintech companies are leveraging blockchain technology to enhance transparency and reduce transfer time, further propelling market growth. The increased penetration of smartphones and internet connectivity also aids in the widespread adoption of digital remittance services.

The rising demand for convenient and cost-effective money transfer services has prompted both traditional and non-traditional financial institutions to enhance their offerings. Money Transfer Operators (MTOs), banks, and online platforms are continuously improving their services to cater to the evolving needs of customers. Competitive pricing, reduced transfer fees, and additional services such as currency exchange and bill payments are attracting more users to formal remittance channels. This trend is particularly evident in developing economies where access to financial services was previously limited.

From a regional perspective, Asia Pacific holds the largest share in the global remittance market, driven by high migration rates and substantial volumes of inward remittances, particularly in countries like India, China, and the Philippines. North America and Europe also represent significant markets due to their large immigrant populations and established financial infrastructures. Latin America and the Middle East & Africa are emerging regions with growing remittance flows, fueled by economic growth and increasing outbound migration.

Type Analysis

The remittance market can be segmented into inward remittance and outward remittance. Inward remittance refers to money sent by expatriates to their home country, while outward remittance involves funds sent from a home country to other countries. Inward remittances constitute a major portion of the market due to the high number of migrant workers sending money back to support their families. This segment is particularly crucial for developing economies where remittances play a significant role in boosting household incomes and economic growth.

Outward remittance, although smaller in comparison to inward remittance, is also growing steadily. This segment is driven by factors such as international tuition fees, payments for overseas purchases, and investments in foreign properties. The increasing number of people traveling abroad for education and business purposes has led to a rise in outward remittance transactions. Additionally, with globalization and international trade on the rise, businesses are also contributing to outward remittance flows.

The inward remittance segment is expected to continue its dominance over the forecast period, supported by the growing migrant population and the necessity to support families back home. Government policies in various countries that encourage the inflow of remittances, such as reduced transaction fees and favorable exchange rates, are also bolstering this segment. Furthermore, international organizations and financial institutions are working towards making inward remittance processes more efficient, secure, and cost-effective.

The outward remittance segment, while s

The Remittance Prices Worldwide data is divided into two groups – Remittance Cost at the Sending Countries and Remittance Cost at the Receiving Countries. For each group there are two dependent variables. FTRI data is available for 147 countries over a 14-year period. Remittance Paid and Received is available for 200 countries spanning 63 years. AML data is available for a minimum of 110 countries in certain years, up to 162 countries, and for a maximum period of 11 years. Names of the countries in different databases or within a database over different years may be captured differently due to geo-political reasons. Clean-up of such names is done to identify the observation uniquely. For example, Republic of Korea is treated as South Korea, Russian Federation or Soviet Union is treated as Russia, Ivory Coast is treated as Côte d'Ivoire, Czcheia is treated as Zchec Republic, Siam is treated as Thailand, the United States of America is treated as the United States and Türkiye is treated as Turkey. Remittance prices data is treated as the base. The data file is split into two datasets by using the ‘Sending Country’ and ‘Receiving Country’ columns along with their respective remittance cost percentage value columns. For each data file, the observations where the “Transparent" value is 'No” are omitted. The data is organized in panel format in ascending years and sorted alphabetically by country as a second-level sorting. The observations are numbered, and a unique key is created by concatenating the year and the serial number. A secondary key is created by concatenating “Year” and “_Country Name”. In the Remittance Paid, Remittance Received, FTRI and AML Index data files, a key same as ‘Secondary key’ is created by concatenating “Year” and “_Country Name”. Using the common key, the data is joined in each ‘Sending Country’ and ‘Receiving Country’ data files. The combined data available for the study is from 2011 to 2023. Missing values are not imputed in the panel data.

Sending remittances to countries like Jordan or Yemen was cheaper than sending money to Syria or Lebanon, as of the first quarter of 2024. This is according to an average taken from different situation in which consumers send money worth 200 U.S. dollars from one country to the next - including cash, MTOs (money transfer organizations) or cards.

This statistic presents the average cost of sending remittances to G20 countries from the 4th quarter of 2013 to the 4th quarter of 2019. In the fourth quarter of 2019, it cost **** percent of the total amount of remittance to transfer money to G20 countries.

Remitting from the United States incurred a cost of 5.71 percent in the first quarter of 2024, an slight increase when compared to the previous year. The cost of sending money from the North American country was at its highest in late 2012, and generally declined since. The source adds that outgoing remittances from the United States was slightly cheaper than the average for the G20 countries, which was estimated at 6.39 percent for sending money worth 200 U.S. dollars.

Japan JP: (DC)Average Transaction Cost of Sending Remittances from a Specific Country data was reported at 10.851 % in 2017. This records a decrease from the previous number of 11.299 % for 2016. Japan JP: (DC)Average Transaction Cost of Sending Remittances from a Specific Country data is updated yearly, averaging 13.743 % from Dec 2011 (Median) to 2017, with 7 observations. The data reached an all-time high of 16.842 % in 2011 and a record low of 10.851 % in 2017. Japan JP: (DC)Average Transaction Cost of Sending Remittances from a Specific Country data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Japan – Table JP.World Bank.WDI: Payment System. Average transaction cost of sending remittance from a specific country is the average of the total transaction cost in percentage of the amount sent for sending USD 200 charged by each single remittance service provider (RSP) included in the Remittance Prices Worldwide (RPW) database from a specific country.; ; World Bank, Remittance Prices Worldwide, available at http://remittanceprices.worldbank.org; Unweighted average;

In 2021, Tanzania and Nigeria were the countries in Africa with the highest costs incurred on remittances sent. On average, charges for a money transfer of 200 U.S. dollars from these countries amounted to 27 percent and 19 percent of the sum sent, respectively.

Sending remittances to Bulgaria was almost **** times more expensive in the first quarter of 2024 than to other countries in Europe, such as Croatia or Lithuania. This is according to an average taken from different situation in which consumers send money worth 200 U.S. dollars from one country to the next - including cash, MTOs (money transfer organizations) or cards.

Sending remittances to countries in Sub-Saharan Africa was ****** ***** times more expensive than countries like Ethiopia or South Africa, as of the first quarter of 2024. This is according to an average taken from different situation in which consumers send money worth 200 U.S. dollars from one country to the next - including cash, MTOs (money transfer organizations) or cards.

Remittance fees from Exact Change on the Spain to Colombia corridor were more than double than those from MoneyGram. This is according to a Statista estimate that aims to compare the prices charged for sending international money transfers to Colombia, but then specifically those that were sent from Spain.

According to Cognitive Market Research, the global Remittance market size will be USD 812421.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 324968.64 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 243726.48 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 186856.97 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 40621.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 16248.43 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The personal sector led the remittance market share in 2023

Market Dynamics of Remittance Market

Key Drivers for Remittance Market

Reduced remittance costs and transfer time

The adoption of digital transfer networks such as mobile phone technology, mobile money, digital currencies, distributed ledgers, and electronic identity to send money has reduced the cost of cross-border payments, making them quick, auditable, and available to everyone. The introduction of digital remittance is expected to minimize reliance on cash agents in both sending and receiving nations, which now contribute to high transaction fees. Furthermore, it is expected to address a wide range of risks, barriers, and costs related to know-your-customer (KYC) and security. As a result, banks and money transfer operators use digital technology to provide remittance services at significantly lower costs than traditional over-the-counter services, increasing the global penetration of digital remittance.

Increase in cross-border transactions and mobile-based payment channels

The rise in cross-border transactions, as well as the shift to mobile banking and mobile-based payment solutions, dominate payment trends in Asia-Pacific and are likely to drive the remittance market's growth. For example, in 2021, Malaysia will make a significant change from paper to electronic payment systems to assist Bank Negara Malaysia's objectives to speed the transition to electronic payments. Furthermore, in February 2024, Visa announced an agreement with an Egyptian banking company to develop innovative solutions for electronic payment services, digital wallets, and other offerings. The collaboration intends to broaden the scope of quick payments and simplify the receiving of foreign remittances from Egyptian expats.

Restraint Factor for the Remittance Market

Lack of awareness about digital remittance

People are hesitant to use digital remittance transfers due to a lack of understanding and instruction. Despite the fact that the Internet's expansion and increased mobile penetration offer chances to digitize remittance origination, the market share of digital-only providers remains relatively small. For example, according to a worldwide journal study, approximately 69% will be aware of and use digital payment methods by 2023. Only 31 percent have never used a digital payment system. Despite the availability of numerous digital payment options, such as Alipay, cash remains the most popular mode of payment in Asia. In addition, the survey discovered that many are hesitant to abandon cash due to a lack of relevant information about digital wallets. Furthermore, a lack of understanding regarding innovations, such as the application of blockchain technology in business, hinders market growth

Impact of Covid-19 on the Remittance Market

The COVID-19 epidemic has had varying effects on the blockchain and cryptocurrency integration business. While it first expressed worries about the market's stability and adoption owing to economic uncertainties, it also emphasized the importance of blockchain technology in improving transparency and security in crisis situations. As a result, interest in blockchain solutions for supply chain management, healthcare, and digital identity veri...

The remittance market refers to the global system of transferring funds, typically by migrant workers, to their home countries. This market plays a crucial role in the financial ecosystem, providing a lifeline for millions of families by funding essential needs such as education, healthcare, and daily expenses. Remittances are usually facilitated through banks, money transfer operators (MTOs), mobile payment platforms, and informal channels. The market is driven by factors like globalization, increasing migration for better economic opportunities, and advancements in digital technology. The adoption of mobile banking, blockchain technology, and digital wallets has enhanced transaction speed, security, and cost efficiency, making remittances more accessible to underserved populations. The rising demand for real-time payments, coupled with increased competition among fintech firms, is driving innovation in the sector. Governments and international organizations are also emphasizing financial inclusion and reducing remittance costs to meet Sustainable Development Goals (SDGs). Recent developments include: November 2021: In order to expand its services in more than 20 markets worldwide, including Asia Pacific, UniTeller, a U.S.-based cross-border remittance payments processor, teamed with Thunes, a global payments network based in Singapore., August 2022: Tempo, a remittance app for U.S. immigrants, was launched by Future FinTech (FTFT) Labs in partnership with payments enabler Currencycloud. Through this alliance, FTFT Labs provides its clients with a multi-currency wallet that has lower fees than the competitors.. Key drivers for this market are: Increasing migration for better economic opportunities. Potential restraints include: high transaction fees, regulatory hurdles, and concerns about money laundering . Notable trends are: Rising adoption in digital comic is driving the market growth.