This growth will drive competition in the market, as incumbents and new entrants seek to grow market share
A new report from Juniper Research has found that digital cross‑border remittances will grow from $295 billion in 2021 to $428 billion in 2025. That means the digital transactions’ returning to pre-pandemic values by 2022.
According to the research, 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 research predicts that the uplift in digital remittance use driven by the pandemic will be sustained through permanent changes to user behavior. This is supported by the reported growth in digital revenue from major remittance players in 2020, despite overall revenue declines.
Besides, the active user base for digital remittances is expected to increase by 66%; reaching 95 million by 2025, from 57 million in 2021. With the rise in adoption of digital payments, traditional players will keep investing heavily in digital offerings, with many digitally native players continuing to adopt aggressive pricing strategies or promotional discounts on remittance services.
We’ve reported that Dutch payments startup raised over 650M in a Series C funding round.