The remittance space has been growing constantly over the years both on the number of users and volume. The traditional providers of remittance services like banks have been charging very high fees creating opportunities for other digital alternatives and digital currencies.
As per the statistics provided by Statistica, the total transaction value of cross-border payments made through the internet in 2020 is almost $95.96 billion. In addition, this value represents a year over year growth of over 21%. Moreover, the total number of users in the remittance sector is estimated to be over 8.5 million. However, these figures are gauged to rise to over $143 billion in volume and 13.2 million users by the year 2023.
Moreover, back in 2019, the majority of remittance users lied within the labour active age groups. In particular, 32% were between 25 and 34 years old and 25% were aged 35-44 years old. Additionally, the average transaction per user annually is about $11,233.
Additionally, according to the report five countries top in the transaction comparison chart. These countries include the United States, Switzerland, Saudi Arabia, Germany, and China. The five countries boost a total transaction value of $40.801 billion. The United States tops the chart with a transaction value of $21.297 billion, and Switzerland is the runners up with $7.969 billion.
Furthermore, the report claims that remittances happen very regularly and users don't tend to change their service providers more often. This sector has been dominated by already settled providers such as traditional banks, money transfer processors like Money Gram and Western Union and post offices. However, due to the high fees these transfer providers charge; it has opened an opportunity for other platforms like Transferwise, Remitly and Worldremit.
In conclusion, the World Bank ranks Mexico as third in terms of remittance recipients. Information published by Banco de México shows that Mexicans received a record $36 billion back in 2019.