Remittance refers to money sent from one party to another such as a payment made for a bill. However, in this article, we discuss remittance as the act of sending money to relatives living in foreign countries for ongoing support, emergencies, or special events.
Remittances have a decent share in the gross domestic product (GDP) of small and developing countries. In challenging situations like disasters, or due to social issues like poverty, remittances help raise people’s standard of living.
Financial institutions help send this money with the guarantee that it reaches the intended party. The cost of sending money varies depending on the payment processing system. Let’s examine some of the latest remittance statistics closely.
Global remittance statistics
Global remittance has shown resilience and growth despite economic uncertainties and other geopolitical challenges. Remittance flow continues to increase, and for low- and middle-income countries, it reached new heights in 2023.
This drives improvements in the global economy. However, the cost of sending remittances remains an issue. It can be as high as 6.2% of the transfer amount and varies by region and remittance corridor. Study these statistics to get a complete overview.
- The global remittance flow was $860 billion in 2023, up from $836 billion in 2022. This is a 3% increase in a year.
77%
of the global remittance inflow went to low- and middle-income countries.
Source: The World Bank
- The US digital remittance market is growing at a compound growth rate of 15.1%. It has potential to reach $13.5 billion in 2032.
- $508 billion in remittances were sent to low- and middle-income countries in 2020.
- Global remittances have been rising yearly since 2016, except for a dip in 2020 due to the pandemic.
- Remittances steadily climbed from $591 billion in 2016 to $860 billion in 2023, with a forecast of $887 billion for 2024.
Countries that receive the most remittance
India has the top spot, with Mexico and China at second and third on the list.
These countries have more remittance inflow than outflow, but Australia’s outflow is significantly larger. Read on to see a clearer view of remittance by country.
- Australia's remittances to other countries came to $1.65 billion in 2023, with more outflow than inflow.
- Remittances to the Philippines in 2023 amounted to $40 billion, or 9.2% of its GDP.
- Pakistan received $24 billion in 2023, representing 7% of its GDP.
- The UAE sent $39.67 billion in 2022, the second largest number after the US.
3.4%
of India's GDP in 2023 – or $125 billion – came from remittances, the highest number in the world.
Source: Business Standard
- Mexico and China received $67 billion and $50 billion, claiming second and third places, respectively.
- Nepal received a record $11 billion in remittances in 2023, about 26.6% of its GDP.
- Malaysia received $1.75 billion in remittances in 2023, with a much larger outflow.
- In 2023, South Asia, Latin America, the Caribbean, and East Asia and the Pacific were the top recipients of these funds, at $189 billion, $156 billion, and $133 billion.
Fintech remittance statistics
Fintech remittance uses technology to send money from one country to another, making the process faster and often cheaper than traditional ways.
The technology uses robust security measures to keep the money safe and scrambles your confidential information. It helps protect your identity and avoid any misuse. These stats will give more context on fintech remittance.
- The estimated transaction value of Fintech Solutions for digital remittances in 2024 is $151.3 billion.
- Fintech remittances from the US will reach $29.92 billion in 2024.
- Fintech remittance users have grown from 5.33 million in 2017 to an expected 15.82 million in 2024. Key fintech players with significant market shares include Wise, Revolut, and Remitly.
- $9.56K is the expected average transaction value per user in the digital remittance market in 2024.
- Users in the digital remittance market are expected to amount to 18.85 million by 2028.
United States remittance statistics
The US is a significant global remittance source with a large immigrant population. Immigrants send billions of dollars back home each year to support their families for essential things like food, medicine, education, and healthcare.
Modern technology has made sending money from the US easier and cheaper. The statistics below help us understand more about US remittances.
- The USA received $7.2 billion in remittance in 2023, slightly down from 2022.
95%
of US remitters send money home to support friends or family. Common reasons include ongoing support, emergency aid, celebrations, and global events.
Source: International Monetary Fund
- Remittance growth in the US is projected to hit $32.98 billion by 2028. Remitly leads the US market, followed by Wise and Xoom Money Transfer.
Tech-enable remittance
Despite economic turbulence and uncertainties, remittance value has steadily increased since 2020. The statistics above show the opportunities present in the global remittance market. The cost of sending money could be an area of interest for entrepreneurs and banking institutions.
The market also looks promising for companies building and operating technologies that facilitate remittance. The market needs more players to enter, making this space a rewarding experience for many.
Discover the latest fintech statistics for more actionable insights into the industry.
by Rajendra Roul