A remittance refers to money sent from one party to another, such as to pay a bill. However, in this article, we will discuss remittances as the act of sending money to relatives living abroad for ongoing support, emergencies, or special events.
Remittances account for a significant proportion of the gross domestic product (GDP) of small and developing countries. In difficult situations such as disasters and social issues such as poverty, remittances can help improve people’s standard of living.
Financial institutions facilitate this transfer by guaranteeing that it reaches its intended recipient.Remittance fees vary depending on the recipient payment processing system. Let’s take a closer look at some of the latest money transfer statistics.
World remittance statistics
Global remittances are showing resilience and growth despite economic uncertainty and other geopolitical challenges. Remittance flows continue to increase, reaching new heights in 2023 in low- and middle-income countries.
This will help improve the global economy. However, remittance costs remain an issue. The maximum amount can be 6.2% of the amount transferred and varies depending on the region and the transfer route. Check out these stats to get a complete overview.
- Global remittance flows increased from $836 billion in 2022 to $860 billion in 2023. This is an increase of 3% in one year.
77%
Of the world’s remittance inflows, remittances went to low- and middle-income countries.
Source: World Bank
- The US digital remittance market is growing at a compound growth rate of 15.1%. It could reach $13.5 billion by 2032.
- In 2020, $508 billion in remittances were sent to low- and middle-income countries.
- Global remittances have increased every year since 2016, except for a dip in 2020 due to the pandemic.
- Remittances are expected to steadily increase from $591 billion in 2016 to $860 billion in 2023, and reach $887 billion in 2024.
Countries receiving the most remittances
India occupies the top spot, with Mexico and China occupying second and third positions on the list.
While remittance inflows outweigh outflows in these countries, Australia’s remittance outflows are significantly larger. Read below to get a clearer understanding of remittances by country.
- Australia’s remittances to other countries reached $1.65 billion in 2023, with more outflows than inflows.
- In 2023, remittances to the Philippines reached $40 billion, or 9.2% of GDP.
- Pakistan received $24 billion in 2023, equivalent to 7% of GDP.
- The UAE remitted $39.67 billion in 2022, second only to the United States.
3.4%
In 2023, $125 billion of India’s GDP will come from remittances, the highest amount in the world.
Source: Business Standard
- Mexico and China received $67 billion and $50 billion, placing them in second and third place, respectively.
- Nepal will receive a record $11 billion in remittances in 2023, equivalent to about 26.6% of its gross domestic product (GDP).
- Malaysia received $1.75 billion in remittances in 2023, and outflows were even higher.
- In 2023, South Asia, Latin America, the Caribbean, and East Asia and the Pacific were the top recipients of these funds, with $189 billion, $156 billion, and $133 billion, respectively.
Fintech remittance statistics
fintech Remittances use technology to send money from one country to another, making the process faster and often cheaper than traditional methods.
This technology uses robust security measures to keep your money safe and encrypt your sensitive information. This helps protect your identity and prevent misuse. These statistics will give further context on fintech remittances.
- The estimated transaction value of fintech solutions in digital remittances in 2024 is $151.3 billion.
- Fintech remittances from the US are expected to reach $29.92 billion in 2024.
- FinTech remittance users are expected to grow from 5.33 million in 2017 to 15.82 million in 2024. Major fintech players with significant market share include Wise, Revolut, and Remitly.
- The average transaction value per user in the digital money transfer market in 2024 is expected to be $9.56,000.
- The number of users in the digital remittance market is expected to reach 18.85 million by 2028.
US remittance statistics
The United States has a large immigrant population and is an important source of remittances worldwide. Immigrants send billions of dollars back to their home countries each year to support their families and obtain necessities such as food, medicine, education, and health care.
Modern technology has made it easier and cheaper to send money from the United States. The following statistics will help you understand more about sending money to the United States.
- The United States received $7.2 billion in remittances in 2023, a slight decrease from 2022.
95%
of US remitters send money home to support friends and family. Common reasons include ongoing support, emergency assistance, celebrations, global events, etc.
Source: International Monetary Fund
- Remittance growth in the United States is projected to reach $32.98 billion by 2028. Remitly leads the US market, followed by Wise and Xoom Money Transfer.
Remittance using technology
Despite economic turmoil and uncertainty, the value of remittances has steadily increased since 2020. The above statistics demonstrate the opportunities that exist in the global remittance market. Remittance costs can be an area of interest for entrepreneurs and banking institutions.
The market also looks promising for companies that build and operate technology that facilitates money transfers. More players need to enter the market, and this field has become a valuable experience for many.
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