Rise in cross-border transactions & mobile-based payment channels, reduced remittance cost & transfer time, and increase in adoption of banking & financial services majorly contribute towards the growth of the market. However, slowdown of the remittance industry in Asia-Pacific and lack of awareness about using digital channels to remit money hamper the Asia-Pacific digital remittance market growth. Asia-Pacific digital remittance market is projected to reach at $215,817 million by 2025, growing at a CAGR of 24.2% from 2018 to 2025.
Based on remittance type, inward digital remittance segment dominated the market in 2016, and is expected to continue this trend during the forecast period, owing to initiatives taken by the government of different countries to boost digital penetration of inward remittances in this region.
Download Sample Copy of Report @ https://www.alliedmarketresearch.com/request-sample/4726
Furthermore, the outward digital remittance segment is expected to grow at the highest CAGR during the forecast period, owing to increase in engagement of people in this region with their overseas counterparts for business, leisure, education, medical, entertainment-related activities, which involve transfer of money overseas. The Asia-Pacific digital remittance market was led by China in 2016, and is projected to maintain its dominance during the forecast period.
However, Singapore is expected to witness the highest growth, owing to the emergence of number of remittance technology start-ups in Singapore and widespread use of communication applications or social networking among foreign workers.
Top Impacting Factors:
Rise in Cross-border Transactions & Mobile-Based Payment Channels-
Rise in cross-border transactions and increase in preference for mobile banking & mobile-based payment solutions dominate payment trends in Asia-Pacific, which are expected to drive the growth of the market. For instance, Malaysia is undergoing major shift from paper to electronic methods of payment to support initiatives taken by the Bank Negara Malaysia to accelerate migration to electronic payment. In addition, in December 2016, Malayan Banking Berhad (Maybank) and Western Union launched the first digital remittance service in Malaysia through its Maybank2u mobile banking app. The service allows Maybank customers to transfer money to more than 500,000 Western Union agent locations in over 200 countries.
Reduced Remittance Cost & Transfer Time-
Adoption of digital transfer network such as mobile phone technology, mobile money, digital currencies, distributed ledgers, electronic identification, and others to remit money has made cross-border payments negligible in cost, instant, auditable, and accessible to everyone. Adoption of digital remittance is projected to reduce the dependency on cash agents in both the sending and receiving countries, which currently contribute to sustaining high transaction fees. In addition, it is projected to address many risks, barriers, and costs associated with know-your-customer (KYC) and security. Hence, banks and money transfer operators adopt digital technology to offer remittance services at significantly lower costs than traditional over-the-counter services, thereby increasing the penetration of digital remittance in Asia-Pacific.
Make Purchase Inquiry @ https://www.alliedmarketresearch.com/purchase-enquiry/4726
Upsurge in Adoption of Banking & Financial Services-
The need for remittance services is on an increase, owing to the growth in adoption of banking and financial services. China and India have experienced the highest adoption rates of FinTech largely, being driven by financial innovation from technology-first players in adjacent sectors, high level of internet & mobile penetration, flexible regulatory environment, access to capital, and less competition from incumbents.
Key Market Players:
- SingX Pte Ltd
- WorldRemit Ltd.
- MoneyGram International
- TNG Wallet
- By remittance type, outward digital remittance segment is expected to exhibit significant growth in the Asia-Pacific digital remittance market during the forecast period.
- In 2016, China accounted for the highest revenue among the other regions.
- Based on remittance channel, the money transfer operators (MTOs) segment generated the highest revenue in 2016.
- By end user, personal segment is anticipated to exhibit substantial growth during the forecast period.
Allied Market Research, a market research and advisory company of Allied Analytics LLP, provides business insights and market research reports to large as well as small- & medium-scale enterprises. The company assists its clients to strategize business policies and achieve sustainable growth in their respective market domain.
Allied Market Research provides one-stop solution right from data collection to investment advice. The analysts at Allied Market Research dig out factors that help clients understand the significance and impact of market dynamics. The company applies client’s insight on the factors such as strategies, future estimations, growth or fall forecasting, opportunity analysis, and consumer surveys among others. As follows, the company offers consistent business intelligence support to help clients transform into a prominent business firm.
5933 NE Win Sivers Drive
#205, Portland, OR 97220
Toll Free (USA/Canada):
+1-800-792-5285, +1-503-894-6022, +1-503-446-1141
Hong Kong: +852-301-84916
India (Pune): +91-20-66346060
Follow us on: https://www.linkedin.com/company/allied-market-research
This post was originally published on Denton Chronicle