International remittances to exceed $600bn in 2018
International digital peer-to-peer remittances conducted via mobile and online platforms will exceed $300 billion globally by 2021, up from an estimated $225 billion in 2018, says a new study from Juniper Research.
The report titled Digital Money Transfer & Remittances: Domestic & International Markets 2018-2022, estimates that total international remittances via formal channels will exceed $600 billion in 2018.
This means that international remittances conducted via mobile and online services will be 36% of formal remittance by value in 2018, growing to 44% by the end of 2021, it says.
The World Bank estimates that global remittances will grow by 3.4% to $616 billion in 2018. Sub-Saharan Africa, with an average cost of 9.1%, remains the highest-cost region, it says.
Global money transfer company Xpress Money, says various African countries rely heavily on remittances to maintain their national gross domestic product. It notes remittances are the continent’s second-largest source of foreign inflows after foreign direct investment.
Photo courtesy of AMISOM Public Information.