Every year more and more people are migrating across the globe for better opportunities to support their families. The rise of migrant population in developed countries, had paved way for conventional remittance model comprising of agent network. However, like every other industry and market, technology has radically transformed today’s remittance sector.
Just two decades ago, internet was available to limited users only. The introduction of fast and cheap internet has completely changed today’s remittance sector as anyone can send money globally with a finger-touch. This transformation must be attributed to migrant population in developed countries whose need to send money forced each and every money transfer service to adopt innovative ways to stay in the market.
Big giants of remittance sector have been ripping customers in the name of fees for providing remittance services, but emergence of digital remittance companies has provided a better, faster and much cheaper alternate for remitters. The induction of digital remittance startups has fundamentally changed the scope of whole process of sending money from send-money-via-agent to send money online.
Emergence of digital remittance has also opened the market to new startups who are only focused on digital remittance services. As a result of these inductions, has market share of big giants in the sector is clearly vulnerable. Digital remittance has forced legacy firms like Western Union, Moneygram and Ria Money Transfer to induct online money transfer services along with conventional services.
The accelerated growth in digital remittance market can mainly be attributed to volume trends, expensive pricing from legacy firms and delivery time. These days, best money transfer companies are spending more on acquiring advanced technology to attract more customers.
A surge in smartphone usage is another factor which has boosted digital remittance. The shift to digital has also introduced a younger, tech-savvy generation of customers which has put legacy firms like Western Union or Moneygram and new arrivals like WorldRemit, TransferWise, Remitly or Azimo at the same level of playing-field. Also, this new generation of customers have also forced every money transfer company to provide more secure, cheap, cost effective and speedy services.
Last, but not least factor behind growth of digital remittance is mobility. Customers, devices and transaction locations are literally moving, another blessing of technology which has brought smartphones equipped with inexpensive and fast mobile internet. The freedom of mobility has provided a massive lenience to customers as they are no longer confined to the restrictions of visiting an agent shop or connecting to a fixed line internet every time.
It has been projected that digital remittance market will grow up to $ 387 billion by 2023. This surely is a massive pie where both legacy and digital remittance companies have an opportunity to take a big bite. But it will not be a surprise if a digital remittance firm may take a lion’s share beating legacy firms as they are not shackled to drag conventional agent network.
As technology is bringing a revolution to remittance sector, there is a sweet ride ahead for those who will understand the rapidly changing trends and embrace the ground realities. But the question still remains “Is Digital Remittance really the Ultimate Future!” as legacy firms cannot be completely eliminated in this bout.