Digital Cross-Border Remittances to Reach $428 Billion in 2025

Digital cross‑border remittances will grow from $295 billion in 2021 to $428 billion in 2025, with digital transactions returning to pre-pandemic values by 2022, according to Juniper Research. The study found that the digital remittance market has been largely resilient to the global pandemic; forecasting continued growth for digital remittance revenue over the next 5 years.

The new research predicts that this growth will drive competition in the market, as incumbents and new entrants seek to grow market share. In response, the report urges remittance providers to implement adaptable business models that provide fast and affordable services. It predicts that the uplift in digital remittance use driven by the pandemic will be sustained through permanent changes to user behaviour. This is supported by the reported growth in digital revenue from major remittance players in 2020, despite overall revenue declines.

Additionally, it anticipates that the active user base for digital remittances will increase by 66%; reaching 95 million by 2025, from 57 million in 2021. With the rise in adoption of digital payments, traditional players will continue to invest heavily in digital offerings, with many digitally native players continuing to adopt aggressive pricing strategies or promotional discounts on remittance services. The study found that the cross-border remittance market has become increasingly crowded and it will become crucial for players to differentiate themselves and add value to their service propositions.

"Growth in acquisitions and partnerships will be inevitable, as competition in the remittance market intensifies. 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," said research author Susannah Hampton.