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Global Remittance Market

----------------------------------------------------2014

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Executive Summary
Remittance is defined as transfer of money by a person who resides in a foreign country to his or her home country. Remittance
industry contributes to economic growth and livelihoods of people across the world. In most of the developing countries, money sent by
foreign migrants to their home countries constitutes the second largest financial inflow to the respective nations. Furthermore, in the
money receiving countries, remittance industry promotes further economic dependence on the global economy instead of building
sustainable local economies. Remittance channel is collectively comprised of a sender, a recipient, intermediaries in both countries
and the payment interface used by the intermediaries. The remittance system encompasses the following components: Remittance
Service Providers (RSP), Remittance Corridors, Remittance Network and, Money Transfer System. Remittance Services are divided
primarily on the basis of ways a network of access points is created and linked. There are broadly four categories: unilateral services,
franchised services, negotiated services, and open services.
The key factors driving growth of the global remittance industry include rising employed and urban population, ameliorating global
economic development, and unceasingly climbing migrant population. Some of the noteworthy developments of this industry include
unstable remittance cost, the impact of remittance on health, education and poverty, wide portfolio of remittance services and
correlation between remittance and foreign exchange rates. Also, the number of electronic payment service providers that offer overthe-counter-payments, mobile money payment and payment cards have increased rapidly. However, the growth of remittance industry
is hindered by the difficulty in establishment of access points, tax regulations and strict regulatory compliances along with the lack of
transparency and understanding.
This report offers a comprehensive analysis of the global remittance market, along with an in-depth study of top remittance receiving
and contributing countries. The report also includes detailed description of regional markets. The competition in the respective market
is highly diversified and fragmented. Some of the major players are Western Union Company, MoneyGram International Inc (MGI) and
Euronet Worldwide Inc, among others. The competitive landscape of the global remittance markets, along with the company profiles of
the leading players are also discussed in detail.
By combining SPSS Inc.s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of
the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS
Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several
independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and
tests.

The remittance system encompasses the following components: Remittance Service Providers (RSP),
Remittance Corridors, Remittance Network and Money Transfer System.
Remittance Flow to Low Income Countries (2009-2015E)

Almost 36 countries out of 214 countries are classified as low

income countries, which include Afghanistan, Cambodia,
Bangladesh and Nepal among others. A majority of the low income
countries are a part of Sub-Saharan African region.

Representing an increase of %, the remittance flow to high

income countries is expected to be recorded at US$.. billion by the
end of year 2014, compared to US$... billion in 2013. However, the
growth of this segment is expected to be reported at a CAGR of
% during the period spanning 2009 to 2014.

2015E

2014E

2013

2012

2011

2010

2009

US$ Billion

The total remittance flow to the middle income group countries is

expected to reach US$... billion at the end of 2014. This is
expected to display an incline of ..%, compared to US$... billion in
the prior year. Furthermore, the same is expected to grow at a
CAGR of % during the period spanning 2009 to 2014.

Remittance Flow to High Income Countries (2009-2015E)

US$ Billion

US$ Billion

Remittance Flow to Middle Income Countries (2009-2015E)

2009

2010

2011

2012

2013

2014E

2015E

2009

2010

2011

2012

2013

2014E

2015E

Remittance Services are broadly four categories: unilateral services, franchised services, negotiated
services and open services.
Low and middle income economies are basically represented by
the developing countries thereby making the developing countries
the main source of emigrants. The remittance flow to the
developing countries is expected to grow further to reach US$...
billion by the end of 2014. This represents an increase of %,
compared to US$... billion in the prior year.

US$ Billion

Remittance Flow to Developing Countries (2009-2015E)

The remittance inflow to East Asia and Pacific region is estimated

to increase by .%, to reach US$ billion in 2014, compared to
US$... billion during the previous year. The inflow to EAP region is
anticipated to increase from US$... billion in 2009 to US$... billion in
2015 thereby reporting the growth at a CAGR of % during the
cited period.

2009

2010

2011

2012

2013

2014E

The remittance flow to the European and Central Asian region

increased from US$... billion in 2009 to US$... billion in 2013. This
displayed a remarkable incline of %.

2015E

Remittance Flow to Europe and Central Asia Region (2009-2015E)

US$ Billion

US$ Billion

Remittance Flow to East Asia and Pacific Region (2009-2015E)

2009

2009

2010

2011

2012

2013

2014E

2015E

2010

2011

2012

2013

2014E

2015E

The key factors driving growth of the global remittance industry include rising employed and urban
population, ameliorating global economic development, and unceasingly climbing migrant population.
Remittance Flows in India (2007-2013)

India is the highest recipient of global remittance inflow with an

estimated remittance inflow of US$... billion by the end of 2013.
The same represented an incline of %, compared to US$... billion
in 2012.

US$ Billion

China was the second largest remittance receiving country by the

end of 2013. The remittance inflow accounted for US$... billion in
the aforementioned year from US$.. billion in 2007, thus, depicting
growth at a CAGR of ..%. In addition, the same represented an
increase of %, compared to US$... billion in 2012.

2007

2008

2009

2010

2011

2012

The remittance flow to the US represented a marginal increase of

.% from US$... billion outflow in 2012, to US$... billion in 2013.
Even though, the US remittance market has not touched the prerecession levels yet, but it is quite stable. The inflow in the US has
also inclined to US$... billion, up by %, compared to US$.. billion
in the previous year.

2013

Remittance Flows in China (2007-2013)

US$ Billion

US$ Billion

Remittance Flows in the US (2007-2013)

2007

2007

2008

2009

2010

2011

2012

2013

2008

2009

2010

2011

2012

2013

Some of the noteworthy developments of this industry include unstable remittance cost, wide portfolio of
remittance services and correlation between remittance and foreign exchange rates.
Global Remittance Outflow (2007-2013)

The global remittance market has been consistently increasing over the past couple of years. The global remittance inflow increased from
US$... billion in 2012 to US$... billion in 2013 thereby representing growth of %. The increase in the global remittance inflow can be attributed
to increase in employment and incomes of migrants drawn by booming economies in the OECD and non-OECD high income countries, a shift
from informal channels to formal channels and global economic growth. The growth of the global remittance market has been recorded at a
CAGR of % during the period spanning 2007 to 2013.
Like global remittance inflow, the global remittance outflow is also escalating steadily over the past few years. The global remittance outflow
was reported at US$.... billion at the end of 2013. This represented a marginal incline of %, compared to US$.... billion in the previous year.
However, the growth of the global remittance outflow is noted at a CAGR of .% during the period spanning 2007 to 2013.
The growth of the remittance market is strongly driven by growing international migration. In 2013, international migrants comprised about
% of the world population, compared to % in 1990. International migrants signify a huge customer base for the worldwide remittance
industry. The number of international migrants reached million by the end of 2013, up by .%, compared to million migrants in 2010. The
average rate of change in the international migration was computed to be % for the period spanning 2000-2013 compared to % of average
change for the period 1990-2000.

Note: Market attractiveness is inverse of penetration. Low penetration means high attractiveness and vice-versa

2013

2012

2011

2010

2009

2008

2007

2014E

2013

2012

2011

2010

2009

2008

2007

US$ Billion

US$ Billion

Global Remittance Inflow (2007-2014E)

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