Money remittance: the key trends driving industry change
The money remittance landscape is changing, driven by growing demand, digitalisation and more. Here’s how payments can reshape the industry, and help remittance businesses seize opportunities.
In our latest whitepaper, The top trends in money remittance, we offer a detailed look at how the sector is evolving, the challenges that lie ahead, and how money remittance businesses can seize new opportunities through alternative payment methods (APMs) like eCash, also known as cash online.
Here, we offer a short breakdown of our key findings.
Migration and digitalisation driving change in money remittance
The primary drivers of change in money remittance are migration and digitalisation.
According to the United Nations, the vast majority of remittances originate from expats sending money home to their family and friends. And this will only increase, with the IMF predicting that economic pressures, political unrest, and, increasingly, climate change, will push even more people to emigrate in search of a better life.
As for digitalisation -- blossoming technologies and, especially, mobile apps, have made remitting money cheaper, faster, and safer.
Consumers no longer have to visit a bank branch to send money home, or rely on largely unregulated and risky alternative methods. Instead, they can send money at a time and place of their choosing, at the touch of a button (or swipe of a screen).
As more migration drives demand for money remittance services, digitalisation is broadening access for large swathes of consumers. With this in mind, digital-first providers are now investing significant amounts of money, time, and resources to make the user experience as smooth and user-friendly as possible.
Opportunities and challenges of money remittance
These changes are creating challenges for the industry, including the fact that many expats and remittance recipients are unbanked or underbanked, and businesses must adapt their payment offerings to consumers' preferences, which can vary widely depending on where they live.
But by tackling these challenges, money remittance businesses can tap into a significant opportunity to serve a wider consumer base, helping people around the world transfer currency who may never have had the opportunity before.
A partnership with the right payment provider is essential to overcoming these hurdles, helping to take the effort out of the payment process, offering greater, more localised choice to consumers, and processing transactions quickly and efficiently, wherever they are.
eCash, for example, can be an excellent way to cater to unbanked consumers. Using cash online, they can send and receive money digitally even if they don't have access to a bank account or an ATM. They simply scan a barcode, take it to one of 650,000 conveniently located pay points in over 50 countries, and settle the transaction in cash.
Working with a payment provider that can seamlessly offer eCash and other APMs like digital wallets, can help money remittance businesses embrace industry changes and seize the opportunity to better serve consumers all around the world.
To learn more about the latest challenges and opportunities in money remittance, check out our whitepaper, The top trends in money remittance.