Remittance are forecast to grow in the years following 2023, and are expected to pick again after a growth decline. In 2023, the value of remittances worldwide amounted to an estimated 883 billion U.S. dollars. This is expected to reach 913 billion U.S. dollars by 2025. Remittances grew especially during the coronavirus pandemic, when the year-on-year percentage change went up by more than 10 percent between 2020 and 2021. Historical data on the global remittance market size, however, reveals this was not the largest increase.

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;

In 2023, the value of migrant remittances transferred from the United States to other countries amounted to 85.7 billion U.S. dollars. This makes the United States the country worldwide with the highest amount of migrant remittance outflows in that year.

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;

The value of personal remittances sent to North America increased by nearly ** percent between 2020 and 2021, the largest increase since 2012. This is according to estimates made by the World Bank on data from the IMF that tracked the balance of payments between countries. All figures provided here have been summed from this individual country's data. The source adds that "personal remittances" consist of both personal transfers between resident and nonresident individuals, as well as the compensation of employees. By definition, then, the numbers shown here focus on migrant workers and likely includes remittances sent from the United States to Mexico, one of the biggest remittance corridors in the world. Note, however, that consumers with a second home abroad but who receive pensions from their country of origin can sometimes also be counted as remittances.

Abstract

The Future of African Remittances (FAR) team conducted research on remittance flows to measure and understand the remittance process in sub-Saharan Africa. This ambitious and important research is initially focused on three countries in East Africa - Ethiopia, Kenya and Uganda.

In order to glean insights into the remittance process in the three designated countries, the World Bank designed a two-phase survey process. Phase 1 involved conducting a national survey in each of the three countries. The purpose of the first phase of research was to collect a large representative sample of the adult population in each country. The national surveys provide important baseline data about international remittance flows including: an estimate of the percent of the total adult population that regularly receives remittances, the average amount of each remittance received, most common methods of receipt and top sending countries. Additionally, through the analysis of the national survey results, World Bank was able to identify areas of each country that have high concentrations of international remittance recipients. This important piece of information guided Phase 2 of the research - surveys of remittance receivers in each country. Whereas the national surveys aimed to collect general data about the remittance process, the surveys of remittance recipients allowed for the collection of more detailed data about the remittance process itself, how remittances are used, the relationship between sender and receiver, and interest in various financial products.

The results of this research will not only provide estimates of total annual amounts of remittances for each country, but also will tell us the percentage of the population in each country that is involved in the international remittance process. Furthermore, it will offer insights as to the degree to which Ethiopians, Kenyans and Ugandans depend on international remittances and how the money is used, saved and/or invested. Results will also measure interest in financial products that, if utilized, can significantly impact the financial well-being of the population and the overall economic stability of each country.

Geographic coverage

National Coverage

Analysis unit

Households Individuals

Kind of data

Sample survey data [ssd]

Sampling procedure

General:

The total samples were compiled utilizing multi-stage stratified random sampling through respondent selection. Multi-stage random sampling ensured that a random sample of adults was collected in each country. First, after stratifying the population of each country by region and population density, sampling points (SPs) were determined. SPs were then randomly selected within each stratum. At each SP, respondents were randomly selected to participate in the survey.

Phase 1:

The first phase consisted of national surveys of the adult population of each country. The three survey samples were designed to be representative of the adult populations of these three countries. World Bank coordinated and oversaw all aspects of the sampling and interviewing process. A team of local field experts was hired in each country to conduct the actual interviews. All interviewers were professionally trained and supervised by research personnel. In this phase of the research, a total of 2022 Kenyan adults were interviewed.

Phase 2:

Once the national surveys were completed, the results were analyzed to determine the areas of concentration of the remittance recipient population, after which the second phase of the project was conducted. This phase of the project included a targeted survey of the remittance recipient population of each of the three East African countries. Sampling Points were established based on the analysis of the national survey data and the identification of areas within each country that showed the highest concentrations of remittances received from relatives abroad in proportion to the sample size of all areas surveyed. Once again, local field experts were hired in each country to conduct the interviews, training and supervision of field operations. Languages of interviews were the same as those employed in Phase 1 and, again, all interviews were conducted in person using the PAPI method. A total of 400 interviews with regular international remittance recipients were completed in each country during August and September of 2010. The margin of error for all three surveys is approximately ±5 percentage points and the 95 percent level of confidence.

Detail:

The total sample was compiled utilizing multi-stage stratified random sampling through respondent selection. This sampling method enabled B&A to ensure that a representative random sample of Kenyan adults was collected. There are three stages to this type of sampling methodology. First, after stratifying the Kenyan population by region and population density, sampling points (SPs) were determined. SPs were then randomly selected within each stratum. In the second stage, using the random route method, dwellings were selected within each SP. The random route method involves selecting an address in each SP at random as a starting point. Each interviewer was given instructions to identify additional dwellings by taking alternate left and right turns and stopping at every Nth dwelling. The third and final stage involved selecting actual participants - for each selected dwelling, individual respondents were chosen using a Kish grid. In a Kish grid, prior to beginning the interview, the interviewer first asks for the ages and genders of every household member (only persons aged 18 or older were eligible for selection). The individual to be interviewed was then chosen based on a random number in the grid.

Once the national survey was completed, B&A analyzed the results to determine the areas of concentration of the remittance recipient population, after which the second phase of the project was conducted. This phase included a targeted survey of the remittance recipient population in Kenya. Sampling Points were established based on B&A's analysis of the national survey data and the identification of areas of the country that showed concentrations of international remittance receivers in proportion to the sample size of all areas surveyed. Once again, local field experts were hired to conduct the interviews and B&A conducted all training and supervision of field operations. Interviews were conducted in English or Swahili depending on respondent preference and all interviews were conducted in person using the PAPI method. A total of 401 interviews with regular international remittance recipients were conducted in Kenya during August and September of 2010. The margin of error for the surveys is approximately ±5 percentage points and the 95 percent level of confidence.

Mode of data collection

Face-to-face [f2f]

Research instrument

Phase 1:

This survey consisted of 12 questions that were aimed at helping to identify some of the basic characteristics of the remittance recipient population in each country. Some of the variables included in this survey were - location, age, gender, amount of money received, method of receipt, origin of remittance, etc.

Phase 2:

The survey instrument for Phase 2 consisted of approximately 35 questions and included a number of variables aimed at obtaining greater detail about the remittance receiving process including costs, amounts received, information about the sender and the relationship between sender and receiver. Additionally, the survey measured interest in various financial products.

Response rate

Every effort was made to achieve the maximum possible coverage, taking cost, timing and other factors into account. A coverage rate of 85% was achieved in the national survey and the 15% of the country that was not covered consisted of areas that were either very remote (and difficult to travel to) or that had extremely small populations.

Sampling error estimates

The margin of error is approximately ±5 percentage points and the 95 percent level of confidence.

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;

The value of remittances worldwide grew to a record high in 2023, although growth did slow down substantially. Estimates on personal remittances received from migrants abroad amounted to an estimated ****** billion U.S. dollars across the world. Geopolitics, especially, seem to have impacted the growth of this source of income. Forecasts on the global remittance market size, though, reveal a that the market growth could accelerate again in both 2024 and 2025.

Turkey TR: Average Transaction Cost of Sending Remittances from a Specific Country data was reported at 10.409 % in 2017. This records an increase from the previous number of 10.379 % for 2016. Turkey TR: Average Transaction Cost of Sending Remittances from a Specific Country data is updated yearly, averaging 10.394 % from Dec 2016 (Median) to 2017, with 2 observations. The data reached an all-time high of 10.409 % in 2017 and a record low of 10.379 % in 2016. Turkey TR: 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 Turkey – Table TR.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;

The value of personal remittances sent to Africa decreased to ***** billion U.S. dollars in 2023, following a decline from ***** billion U.S. dollars in 2021. This is according to estimates made by the World Bank on data from the IMF that tracked the balance of payments between countries. All figures provided here have been summed from this individual country's data. The source adds that "personal remittances" consist of both personal transfers between resident and nonresident individuals, as well as the compensation of employees. By definition, then, the numbers shown here focus on migrant workers, although it should be noted that remittances consist of more than that. Consumers with a second home abroad but who receive pensions from their country of origin can sometimes also be counted as remittances.

The value of personal remittances sent from North America grew by nearly 10 percent between 2020 and 2021, a recovery from the previous year. This is according to estimates made by the World Bank on data from the IMF that tracked the balance of payments between countries. All figures provided here have been summed from this individual country's data. The source adds that "personal remittances" consist of both personal transfers between resident and nonresident individuals, as well as the compensation of employees. By definition, then, the numbers shown here focus on migrant workers, although it should be noted that remittances consist of more than that. Consumers with a second home abroad but who receive pensions from their country of origin can sometimes also be counted as remittances.

The value of personal remittances sent to Latin America increased by nearly ** percent between 2021 and 2022, the largest increase since 2006. This is according to estimates made by the World Bank on data from the IMF that tracked the balance of payments between countries. All figures provided here have been summed from this individual country's data. The source adds that "personal remittances" consist of both personal transfers between resident and nonresident individuals, as well as the compensation of employees. By definition, then, the numbers shown here focus on migrant workers. In the case of Latin America, this could include transfers sent from migrant workers working in the United States to their homes in El Salvador. Note that consumers with a second home abroad but who receive pensions from their country of origin - for example, U.S. citizens living in Costa Rica - can sometimes also be counted as remittances.

Remittance & Money Transfer Software Market size was valued at USD 6284.2 Million in 2024 and is projected to reach USD 19,681 Million by 2031, growing at a CAGR 17.9% during the forecasted period 2024 to 2031.

Global Remittance & Money Transfer Software Market Drivers

Growing International Remittances: As migration and globalization continue to rise, there has been a notable surge in the amount of money that people send abroad to their family members who live abroad. There is a growing need for effective and safe money transfer software due to the increase in remittance flows.

Growing Digitalization and Mobile Payments: The rise of mobile banking services and digital payment platforms has revolutionized cross-border money transfers. By enabling users to send and receive money easily via mobile devices, remittance software solutions promote financial inclusion and increase the number of people using money transfer services.

Growing Adoption of Blockchain Technology: By improving security, transparency, and speed, blockchain technology has made cross-border transactions easier in the remittance sector. Remittance software vendors use blockchain technology to deliver real-time, affordable money transfer services, drawing in clients looking for more affordable and expedited remittance options.

Regulatory Initiatives and Compliance Requirements: Remittance service providers have been forced to invest in strong compliance management systems and software solutions because to strict regulatory requirements and anti-money laundering (AML) legislation. To guarantee regulatory compliance and reduce financial risks, remittance software provides features including KYC (Know Your Customer) verification, transaction monitoring, and reporting capabilities.

Demand for Enhanced Customer Experience: The need for improved customer service When selecting remittance service providers, customers are placing a greater emphasis on convenience, speed, and dependability. The total customer experience is improved with remittance software solutions with user-friendly interfaces, clear dashboards, and seamless connection with financial systems. This promotes client loyalty and retention.

Technological Development and Innovations: As a result of ongoing developments in software and financial technology (FinTech), cutting-edge remittance solutions with sophisticated features like biometric authentication, AI-powered fraud detection, and predictive analytics have emerged Growth in the market is fueled by these technical advancements that improve the security, accuracy, and efficiency of money transfer procedures.

Growing Need for Cross-Border Payments in E-Commerce: The need for dependable and effective cross-border payment solutions has been exacerbated by the growth of e-commerce platforms and the volume of cross-border online transactions. In order to meet the needs of online sellers and merchants, remittance software companies offer seamless integration with e-commerce platforms that allow them to accept payments from clients all over the world.

Developing Market Prospects and Remittance Corridor Extensions: Remittance software providers can take advantage of these opportunities to reach untapped areas and address the needs of expatriates and migratory workers by expanding their existing remittance corridors and launching new ones. Market expansion is facilitated by remittance software systems that allow numerous currencies, languages, and payout alternatives. These features enable cross-border transactions across several remittance corridors.

Migration Trends and Economic Factors: The amount and frequency of remittances that migrant workers send back to their home countries are influenced by economic factors such as inflation, currency exchange rates, and employment possibilities. Remittance software companies keep an eye on migration patterns and economic data in order to modify their services and pricing policies and remain competitive in the international remittance industry.

United Kingdom UK: Average Transaction Cost of Sending Remittances from a Specific Country data was reported at 7.009 % in 2017. This records a decrease from the previous number of 7.349 % for 2016. United Kingdom UK: Average Transaction Cost of Sending Remittances from a Specific Country data is updated yearly, averaging 7.562 % from Dec 2011 (Median) to 2017, with 7 observations. The data reached an all-time high of 8.400 % in 2013 and a record low of 7.009 % in 2017. United Kingdom UK: 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 United Kingdom – Table UK.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 and Ivory Coast accounted for a combined 25 percent of the total outflow of remittance-sending countries in Africa in 2021. Remittances from the 54 countries and territories in this region ranged from 1.7 million U.S. dollars to four billion U.S. dollars, with a country like Nigeria accounting for roughly six percent of Africa's outflow,. Remittances refer to cross-border payments to family or friends and are often associated with migrant workers sending money back home to friends or relatives back in their communities of origin. It is estimated that about one in seven people worldwide are involved with remittances - substantially impacting payment behavior in, especially, Asia and Latin America. Africa's outflow largely stayed within the continent, especially within Sub-Saharan Africa.

Series Name: Volume of remittances (in United States dollars) as a proportion of total GDP (percent)Series Code: BX_TRF_PWKRRelease Version: 2020.Q2.G.03 This dataset is the part of the Global SDG Indicator Database compiled through the UN System in preparation for the Secretary-General's annual report on Progress towards the Sustainable Development Goals.Indicator 17.3.2: Volume of remittances (in United States dollars) as a proportion of total GDPTarget 17.3: Mobilize additional financial resources for developing countries from multiple sourcesGoal 17: Strengthen the means of implementation and revitalize the Global Partnership for Sustainable DevelopmentFor more information on the compilation methodology of this dataset, see https://unstats.un.org/sdgs/metadata/

Remittance Software Market Outlook

As of 2023, the global remittance software market size is estimated to reach approximately USD 4.5 billion, with a projected compound annual growth rate (CAGR) of 12% leading to a forecasted market value of USD 12 billion by 2032. This robust growth trajectory is driven by several factors, including the increasing need for secure and efficient money transfer systems, particularly in the context of cross-border remittances which are crucial for economic stability in many developing regions. The proliferation of digital banking and the rising penetration of smartphones have further facilitated the adoption of remittance software, shifting preferences from traditional money transfer methods to more streamlined digital solutions.

The primary growth factor for the remittance software market is the globalization of economies which has resulted in a greater movement of people across borders, thereby increasing the demand for efficient and reliable money transfer solutions. Many individuals work in foreign countries and remit money back home, necessitating platforms that can handle these transactions securely and efficiently. The continuous innovation in fintech has made remittance software more accessible and affordable, which appeals to a broader audience, including both individual consumers and businesses. Moreover, the introduction of blockchain technology and cryptocurrency-based remittances are poised to revolutionize the market further by offering low-cost, high-speed transfers with enhanced transparency and security.

Another significant growth driver is the increasing regulatory support for digital financial services in many countries. Governments are recognizing the potential of digital remittances to drive financial inclusion and are thus implementing policies that favor the adoption of such technologies. For example, several countries have updated their financial regulations to support digital remittance solutions, thereby encouraging both consumers and businesses to adopt these systems. This regulatory backing not only ensures the safety and security of transactions but also builds trust among users, which is crucial for widespread adoption.

Additionally, the market is benefitting from the growing preference for cashless transactions, especially in the wake of the COVID-19 pandemic. The pandemic has accelerated the shift towards digital platforms as consumers and businesses alike seek contactless solutions that minimize the risk of virus transmission. Remittance software solutions offer a convenient alternative to traditional methods, enabling users to transfer money from the safety and comfort of their own homes. This trend is expected to continue as digital literacy improves and more people gain access to the internet, especially in rural and underserved areas.

The evolution of Digital Money Transfer & Remittances has been a game-changer in the financial sector, particularly in the context of global remittance flows. As digital platforms become more sophisticated, they offer unparalleled speed and convenience, allowing users to send money across borders with just a few clicks. This innovation is not only transforming how individuals and businesses manage their finances but also enhancing the overall efficiency of the remittance process. With the integration of advanced security measures and user-friendly interfaces, digital remittance solutions are gaining widespread acceptance, providing a viable alternative to traditional banking methods. As the demand for these services continues to grow, financial institutions and fintech companies are investing heavily in technology to improve their offerings and capture a larger share of the market.

Regionally, Asia Pacific is anticipated to account for the largest share of the remittance software market due to its massive population and high volume of remittance activities. Countries like India, China, and the Philippines are among the top recipients of remittances globally, driving the demand for efficient remittance solutions. North America is also expected to see significant growth, driven by technological advancements and the presence of major market players. Europe is witnessing steady growth due to increased migration across EU countries, while Latin America and the Middle East & Africa are emerging as potential markets due to improving digital infrastructure and economic growth.

Component Analysis

The remittance software market is

Uganda UG: Average Transaction Cost of Sending Remittances to a Specific Country data was reported at 10.633 % in 2017. This records a decrease from the previous number of 11.999 % for 2016. Uganda UG: Average Transaction Cost of Sending Remittances to a Specific Country data is updated yearly, averaging 12.778 % from Dec 2011 (Median) to 2017, with 7 observations. The data reached an all-time high of 14.738 % in 2011 and a record low of 10.633 % in 2017. Uganda UG: 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 Uganda – Table UG.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;

Jamaica JM: (DC)Average Transaction Cost of Sending Remittances to a Specific Country data was reported at 8.888 % in 2017. This records an increase from the previous number of 8.356 % for 2016. Jamaica JM: (DC)Average Transaction Cost of Sending Remittances to a Specific Country data is updated yearly, averaging 8.888 % from Dec 2011 (Median) to 2017, with 7 observations. The data reached an all-time high of 9.590 % in 2013 and a record low of 8.108 % in 2012. Jamaica JM: (DC)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 Jamaica – Table JM.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;

Malaysia and Singapore accounted for a combined 72 percent of the total outflow of remittance-sending countries in Southeast Asia in 2021. Remittances from the 12 countries and territories in this region ranged from 16 million U.S. dollars to eight billion U.S. dollars, with countries like Indonesia or the Philippines accounting for roughly six percent and three percent of Southeast Asia's outflow, respectively. Remittances refer to cross-border payments to family or friends and are often associated with migrant workers sending money back home to friends or relatives back in their communities of origin. It is estimated that about one in seven people worldwide are involved with remittances - substantially impacting payment behavior in, especially, Asia and Latin America. Southeast Asia's outflow largely stayed within Asia, especially within both Southeast Asia itself and South Asia - which includes India.