NEW
YORK, July 8, 2024 /PRNewswire/ -- The
global money transfer agencies market size is estimated
to grow by USD 15.84 billion
from 2024-2028, according to Technavio. The market is estimated to
grow at a CAGR of 11.54% during the forecast period.
Technological advancements is driving market growth, with
a trend towards rising number of start-ups.
However, rising illicit financial flows poses a
challenge. Key market players include Azimo BV, Bank of America
Corp., Citigroup Inc., Denarii, Euronet Worldwide Inc., Finablr
Ltd., HDFC Bank Ltd., JPMorgan Chase and Co., MoneyGram Payment
Systems Inc., NIUM Pte. Ltd., NOW Payment Services Provider LLC,
OzForex Ltd., PayPal Holdings Inc., Remitly Global Inc., Remitware
Payments Canada Inc., Sendah Direct, TransferGo Ltd., U.S. Bancorp,
Wells Fargo and Co., Western Union Holdings Inc., Wise Payments
Ltd., and WorldRemit Ltd.
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Service (Money transfer
and Currency exchange) and Geography (North America, Europe, APAC,
Middle East and Africa, and South America)
|
Region
Covered
|
North America, Europe,
APAC, Middle East and Africa, and South America
|
Key companies
profiled
|
Azimo BV, Bank of
America Corp., Citigroup Inc., Denarii, Euronet Worldwide Inc.,
Finablr Ltd., HDFC Bank Ltd., JPMorgan Chase and Co., MoneyGram
Payment Systems Inc., NIUM Pte. Ltd., NOW Payment Services Provider
LLC, OzForex Ltd., PayPal Holdings Inc., Remitly Global Inc.,
Remitware Payments Canada Inc., Sendah Direct, TransferGo Ltd.,
U.S. Bancorp, Wells Fargo and Co., Western Union Holdings Inc.,
Wise Payments Ltd., and WorldRemit Ltd.
|
Key Market Trends Fueling Growth
Fintech start-ups, such as TransferWise, Revolut, Xoom, WeSwap,
PeerTransfer, Sendmoney.ph, WorldRemit, Remitly, Azimo, and
TransferGo, are disrupting the global money transfer agencies
market by raising substantial investments and offering innovative
solutions. These start-ups are challenging traditional banks and
Money Transfer Operators (MTOs) with peer-to-peer (P2P) and
consumer-to-business (C2B) cash payment models. For instance,
M-Pesa's P2P and C2B transactions have significantly improved money
transfer convenience for millions of users. With the increasing
number of start-ups, the payments landscape is poised for
significant change during the forecast period. Xoom held a 23%
market share in September 2021, and
the market is expected to grow due to the convenience,
affordability, and accessibility offered by these fintech
solutions.
The Money Transfer Agencies market is experiencing significant
trends as more people use mobile wallet transfers for cross-border
payments. Migrants, expatriates, students, travelers, and business
partners are increasingly relying on mobile platforms for
remittance services. Digital technology and correspondent banks are
key partners in facilitating these transactions. Currency exchange
and exchange rates are crucial factors, with digital banks and wire
transfers offering competitive rates. Traditional financial
institutions and multinational corporations are also embracing
digital technology to streamline international trade transactions,
investment activities, and currency risk management. Cross-selling
and value-added services like currency exchange, bill payments,
prepaid cards, microfinance products, and transaction histories are
becoming popular offerings. International organizations and
financial inclusion initiatives are also leveraging these services
for foreign exchange and remittances.
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Market Challenges
- The money transfer agencies market faces significant challenges
due to the increasing issue of illicit financial flows. These flows
involve funds that are illegally earned, transferred, or used. With
the growing reliance on digital technologies, the communication
networks facilitating these illicit transactions pose a major
concern. Furthermore, digital technologies enable organized
cybercrimes and offer opportunities for fraud,
corruption, tax evasion, and other unlawful activities. These
factors are expected to impede the market's growth throughout the
forecast period.
- Money transfer agencies face several challenges in today's
digital world. User-friendly mobile apps and online platforms are
essential for customer convenience, but they require advanced
technologies and API-driven infrastructure. Banking infrastructure
and regulatory scrutiny are crucial for secure and efficient
cross-border transactions. Industry professionals must navigate the
use of blockchain technology, digitalization, and
cryptocurrencies like Bitcoin and
Ethereum. Security is paramount, with
fraud, tracking, and multicurrency accounts top
concerns. Immigrant populations and their family members and
friends rely on remittance services for financial inclusion.
Fintech companies and disruptors are transforming the financial
services industry with digital transactions, while physical
branches and currency exchange rates remain important for some
customers. Cross-border remittances, e-commerce, and financial
investments also pose challenges. Decentralized
ledgers offer potential solutions, but regulatory compliance and
financial crimes are ongoing concerns. Intermediaries must balance
the need for efficiency and security with the demands of
international borders and financial services regulations.
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challenges - Download a Sample Report
Segment Overview
This money transfer agencies market report extensively covers
market segmentation by
- Service
- 1.1 Money transfer
- 1.2 Currency exchange
- Geography
- 2.1 North America
- 2.2 Europe
- 2.3 APAC
- 2.4 Middle East and
Africa
- 2.5 South America
1.1 Money transfer- Money transfer agencies
facilitate the process of sending money across borders. These
agencies offer various services such as cash pick-up, bank
transfer, mobile wallet top-ups, and home delivery. They partner
with banks and financial institutions to ensure secure and
efficient transactions. Fees and exchange rates may vary, making it
essential for customers to compare offerings before selecting a
service. The market for money transfer agencies continues to grow
due to increasing globalization and the need for seamless
cross-border transactions.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
The Money Transfer Agencies (MTAs) market is a dynamic and
evolving sector that facilitates the transfer of monetary assets
across international borders and domestic transactions for
individuals and businesses. MTAs serve as intermediaries between
senders and receivers, providing various payment methods through
digital platforms and physical agent networks. The market caters to
diverse needs, including international remittances, business
payments, and personal financial needs. Industry standards ensure
secure and efficient transactions. Financial technology
innovations, digital technologies, mobile devices, and
user-friendly mobile apps have revolutionized the sector, making it
more accessible and convenient. Online platforms and retail agents
offer cash pickups and bank deposits as payout locations, expanding
financial inclusion and broadening the reach of MTAs in the
financial services industry.
Market Research Overview
The Money Transfer Agencies (MTOs) market is a dynamic and
evolving industry that facilitates the transfer of monetary assets
between individuals, businesses, and service providers across
international borders. This market caters to various financial
needs, including international remittances, business payments, and
personal financial requirements. The industry is witnessing
significant digitalization, with digital platforms and mobile
devices becoming increasingly popular for digital transactions.
Financial technology innovations, such as blockchain technology and
API-driven infrastructure, are revolutionizing the industry by
providing secure, efficient, and decentralized
solutions for cross-border transactions. MTOs operate through
physical agent networks and correspondent banks, offering various
payout options, including cash pickups, bank deposits, mobile
wallet transfers, and home address delivery. The market is subject
to regulatory scrutiny and industry standards to ensure security,
efficiency, and compliance with financial crimes and
fraud prevention measures. The MTO market serves a
diverse clientele, including immigrants, expatriates, students,
travelers, and businesses, and caters to various financial
services, including foreign remittances, cross-border e-commerce,
and financial investments. The industry is experiencing disruption
from fintech companies, which are leveraging digital technologies
to offer user-friendly mobile apps, online platforms, and digital
transactions. Currency exchange rates, regulatory compliance, and
security are critical factors that influence the market's growth
and competitiveness. The market's future growth is expected to be
driven by digital transformation, financial inclusion, and the
increasing demand for cross-border payments and remittances.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Service
-
- Money Transfer
- Currency Exchange
- Geography
-
- North America
- Europe
- APAC
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio