Remittance Market Size to Grow $930.44 Billion, Globally, by 2026: At 4.1% CAGR.
Major players in the market includes InstaReM PTE Limited, Vianext Fast Remit, ICICI Money2India, Remitly, bridge21, Xoom, Remit2India, Venstar Exchange, Western Union, MoneyGram, RIA Money Transfer, RemitMoney and OrbitRemit Money Transfer.
Oct 2020-Remittance boom is turning into a bust for emerging markets in Asia. Migrant workers from Asia’s developing countries have managed to send home record amounts of money in recent months, defying pandemic expectations and propping up home economies at a critical time. Remittance doomsayers see something else in the bigger-than-usual transfers: a coming crash, triggered by a bleak job market, particularly in the Middle East. As they see opportunity drying up along with demand for oil, workers are sending money home in advance of their own return.
In India-The government decision to tax remittances under the RBI’s Liberalized Remittance Scheme (LRS) has put investors who dabble in foreign stocks in a spot, but brokers said they should not be discouraged. As per the new rules, from October 1, tax collected at source (TCS) will be applicable on all remittances above Rs 7 lakh at the rate of 5 per cent. In case you do not provide your Aadhaar or PAN Card, a 10 per cent TCS will be applicable. The main purpose of introducing this tax was for the government to widen the tax net. As per the government's findings, many individuals utilizing the LRS were not paying taxes at all. The tax will impact Indian investors investing in overseas stocks, bonds and property as it increases the upfront costs of overseas investing and expenses.
Non-Resident Indians (NRIs) around the world sent a total of $83 billion to India in 2019, as per a World Bank report. NRIs often pay a heavy price to send their hard-earned money. In 2019, the average cost of sending $200 to India was 2.9% of the amount sent according to the World Bank data on remittances. On average, NRIs spent close to $2.4 billion in just fees and charges to send money home in 2019. According to the data above from the Reserve Bank of India, family maintenance and savings constitute a majority of the remittances sent to India along with money sent for investment purposes.
Segmentation of market depends on by Type it has Inward Remittance and Outward Remittance. By application, the market is classified into consumption, savings and investments. By end user, it is categorized into business and personal. Region wise, it is analyzed across South Asia/Southeast Asia, MENA and Rest of the World. North America dominated the market and held the largest market share in 2019. Several people migrate to North America in search of better job opportunities and education as well as for business purposes, thereby fueling the regional market growth. Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. Growing base of customers that are comfortable with using mobile devices in Asia Pacific is expected to create growth opportunities for the regional market.