With reduced cost and quick transfer time, the remittance market is experiencing an upward trajectory with no pace of slowing down. Starting 2020 with a $702 billion value, the global remittance market is expected to experience a 75% growth by 2030. This is in direct contrast to analysts’ predictions. At the onset of the pandemic, the World Bank predicted a 20% decline in remittances in response to the United States’ economic outlook, the largest remittance-sending country in the world. While the global remittance volume fell 2% short of 2019’s record high, remittance inflows into Latin America and the Caribbean surprisingly grew by 6.5% in 2020.
Why is the remittance market growing?
Several macroeconomic factors have influenced the growth of remittance services. For instance, remittances helped to support families during the pandemic and continued to do so as economic uncertainty hit in 2022 with supply chain shortages and rising inflation.
Further, the unemployment rate for foreign workers living in the United States decreased by 3.6% from 2020 to 2021, enabling immigrants to continue sending remittances to their home countries. In fact, migrant workers send an estimated $200-300 million home every one to two months.
Lastly, the increased demand for travel this year continues to drive the global remittance market. For example, travelers use remittance services to exchange currency and utilize contactless payment options.
Are remittances too hot to handle in-house?
Breaking away from banking partners to create in-house options for payments processes, cash management and loan management can be very advantageous for a number of reasons.
For starters, there are challenges with recruitment and retention within the IT industry, making it difficult to attract the right tech talent to build the infrastructure for your remittance program. Additionally, in such a fast-growing and highly regulated market, it is imperative that a remittance offering:
Low to No Code Accelerates Go to Market
Low to no code tools are software development environments that enable companies to integrate new features and offerings into its existing platform, like a remittance program.
ReadyRemit is Brightwell’s low to no code solution that can help you with the heavy lifting of implementing a remittance platform. Powered by Brightwell's international payment partners, ReadyRemit enables businesses and FinTechs to launch a global payments program quickly and efficiently, introducing a new revenue stream while adding value for their end users.
*Brightwell is a technology provider and not a bank or other regulated financial institution. All regulated services associated with ReadyRemit are provided by The Bancorp Bank. Terms and conditions apply.