Remittance industry is growing by the time and with the new innovations in the technology. With the development in the technology remittance inflows are become more smooth and less time consuming. Remittance industry plays a significant role in the GDP of the economy and economic growth. Moreover, the remittance have a positive impact on the livelihoods of people across the world. Whereas, lower-middle regions are the biggest destinations for remittance inflows and the U.S. and Saudi Arabia are the great contributors to the global remittance market carried by significant remittance outflows by foreign workers. Additionally, this remittance market is totally depend on the migrated population living across the world. According to the report analysis, ‘Market Research Reports for Remittance’ states that with the more development in the technologies such as blockchain, digital transactions, Fintech and others of remittance industry lead the market growth in the forecasted period and in the coming years, more development and innovations are done which make the market more innovative and profitable.
Blockchain technology is the most prominent technology of this industry as with this technology any one can send money at home places from abroad with the use of cryptocurrencies. Moreover, the stage of Blockchain help in reducing the transaction fee and less time consuming furthermore, it is very much popular in making effective transaction. In 2016 it is observed by the World Bank that the remittance will total USD 585.1 billion. The effective applications of the blockchain is spreading across the globe such as it doesn’t include higher cost and have high speed with the simplified experience. Majorly, it eliminate the existence of middle man. Ripple is one of the most widely used blockchain technologies for cross border payments. Not only has this, another technology of Fintech is also capturing the market of remittance as it simply target the same customers of the Western Union/Money Gram at a lower cost via an improved process. Fintech is considering the distributed ledger technology as the backbone of a new cross-border payments infrastructure to solve inefficiencies and provide faster, more affordable services. Additionally, the digital transaction technology is playing vital role in this market and acquiring huge share with the more development in the technology. Moreover, with this technology the traditional remittance had been eliminated which includes waiting in line for several hours. Moreover, with the increase in the urbanization and digitalization signify the transfer of money with the usage of mobile phones. The introduction of smart phones is helping to break down the issues of cross-border payments. According to the report analysis, ‘Remittance Industry Research and Market Reports’ states that with the more development in the technologies and introduction of the new technologies will lead the market growth in the modern trend and make the market more competitive with the existence of numerous technologies.
North America and South Africa is dominating the market more significantly with the technology of blockchain and digital transactions and it is expected Europe is also performing in the more auspicious manner for acquiring the huge share in this industry. Not only has this, Asia Pacific region is start doing so many projects and development in the innovations and development in the existing technology as the market of remittance is becoming more competitive and attractive which can attract so many investors within a specified time and make the market fruitful for both investors and foreign workers. Therefore, it is expected that in the coming years, the market of technologies in the remittance industry will grow more significantly over the decades.
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Ankur Gupta, Head Marketing & Communications