Money Transfer Agencies Market Expected to Reach $65.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Money Transfer Agencies Market," The money transfer agencies market was valued at $14.9 billion in 2022, and is estimated to reach $65.9 billion by 2032, growing at a CAGR of 16.2% from 2023 to 2032.

Money transfer agencies are increasingly embracing digital channels. Mobile apps and online platforms have become primary channels for customers to initiate transactions, leading to a more convenient and user-friendly experience. Further, the market has become highly competitive with both traditional players and fintech startups vying for market share. This competition has led to innovations in service offerings and pricing. Furthermore, money transfer agencies are playing a role in financial inclusion efforts by providing services to individuals who are underserved by traditional banks. This trend is especially relevant in emerging markets boosting the growth of money transfer agencies market.

Furthermore, agencies are increasingly focusing on improving the customer experience by offering personalized services, real-time tracking, and 24/7 customer support. Moreover, some money transfer agencies are exploring blockchain technology and cryptocurrencies like Bitcoin for cross-border transactions. These technologies offer the potential for faster and cheaper transfers propelling money transfer agencies market trends.

Furthermore, the global money transfer agencies are in its developing phase, and exhibits high growth potential, due to rise in implementation of advanced technologies such as artificial intelligence (AI) and machine learning (ML). In addition, increase in partnerships are expected to promote the money transfer agencies market growth in future. For instance, in January 2020, WorldRemit partnered with Wizall, to launch its first mobile money transfer service to Senegal. The new partnership with Wizall Money enables WorldRemit customers in over 50 countries, including France, Spain and the U.S., to send money home instantly to over 60,000 mobile money accounts in Senegal.

Moreover, many money transfer agencies expanded their geographical presence to expand their customer base and gain more profits. For instance, in November 2022, Ria Money Transfer expanded its presence in South Africa with its acquisition of Sikhona Forex (Pty) Ltd. The combination of Sikhona’s digital capabilities in the African market and Ria’s international digital and far-reaching physical network means faster, more affordable, and more robust cross-border money transfer services for customers throughout Africa.

By end user, the individual segment acquired a major money transfer agencies market share in 2021. This is attributed to the fact that the businesses are increasingly opting for digital platforms and APIs offered by money transfer agencies. These digital solutions streamline financial transactions, enable bulk payments, and provide real-time tracking for businesses.

Region-wise, Asia-Pacific is expected to grow significantly in money transfer agencies market during the forecast period. This is attributed to the fact that some money transfer agencies in Asia-Pacific are exploring blockchain technology and cryptocurrencies to enhance cross-border transactions. These technologies promise faster and potentially cheaper international transfers. In addition, money transfer agencies are playing a prominent role in providing solutions to the non-banking population in underdeveloped areas.

Travel restrictions and lockdowns led to disruptions in migration patterns. Migrants who were unable to travel or return to their home countries faced challenges in sending money back to their families. Furthermore, money transfer agencies faced operational challenges due to the pandemic, including disruptions in agent networks, reduced working hours, and restrictions on in-person transactions. These challenges impacted the ability to serve customers effectively. Furthermore, the pandemic introduced volatility in currency exchange rates, which affected the cost and value of cross-border transfers. Customers became more sensitive to exchange rate fluctuations.  Thus, these factors hindered the growth of the money transfer agencies industry during the pandemic.     

Key Findings of the Study

• By service type, the money transfer segment accounted for the highest share in money transfer agencies market, in terms of revenue in 2021.
• On the basis of end user, the individual segment is expected to exhibit the fastest growth rate during the forecast period in money transfer agencies market.
• Region wise, North America generated the highest revenue of money transfer agencies market size in 2021. 

The key players operating in the money transfer agencies market analysis include Ria Financial Services, Skrill, MoneyGram, SMALL WORLD FINANCIAL SERVICES, Remitly, Inc., Xoom Corporation (Paypal), Wise Payments Limited, WorldRemit, The Western Union, and XE.com Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the money transfer agencies market.