RemitTech: Digital Remittance Market Overview

This section header slide introduces the "Remittances Market Summary" as Section 01. It highlights that global remittance flows exceed $900 billion, fueled by migration, digitalization, and key regions like South Asia, Africa, and LATAM.

RemitTech: A Market Overview of the Digital Remittance Sector

01

Remittances Market Summary

Global Flows Exceed $900B, Driven by Migration, Digitalization, and Key Regions Including South Asia, Africa, LATAM

Source: Remittances Market Summary

This slide presents a table of M&A activity in the past 3 years for deals valued between $20M and $1B, featuring targets like Wise (acquired by PayPal for ~$500M to expand customer base) and Remitly (by Chime for ~$800M for digital tech). Other deals include WorldRemit by Flutterwave (~$250M for Africa expansion), Paysend by Euronet (~$350M for customer base and tech), and Azimo by Papara (~$120M for Europe expansion).

M&A Activity (Past 3 Years, $20M–$1B)

Source: PitchBook, S&P Capital IQ

Global remittances are projected to grow at a 6.3% CAGR from 2024–2030, with digital adoption reaching 45% and mobile/API transfers expanding at 28% CAGR over the same period. Average transaction fees have declined to 4.2% from 6.5% in 2020.

Key Industry Metrics & Trends (Slide 1)

• 6.3%: Global Remittance CAGR

2024–2030 projected growth

• 45%: Digital Adoption Rate

Share of digital remittances

• 4.2%: Avg. Transaction Fees

Declining from 6.5% in 2020

• 28%: Mobile/API Transfer Growth

CAGR 2024–2030

Blockchain and stablecoins are driving innovation and efficiency in remittances, supported by regulatory enablers like PSD2, open banking, and cross-border APIs. Customer demand for instant, low-cost transfers is accelerating the adoption of digital and API-based solutions.

Key Industry Metrics & Trends (Slide 2)

• Blockchain & stablecoins driving remittance innovation and efficiency
• Regulatory enablers: PSD2, open banking, cross-border APIs
• Rising customer demand for instant, low-cost transfers
• Accelerating adoption of digital and API-based solutions

Source: RemitTech: A Market Overview of the Digital Remittance Sector

The slide "Risks & Headwinds (Slide 1)" highlights key challenges facing the business. It points to intensifying competition causing pricing compression, regulatory divergence increasing compliance costs, and FX volatility threatening profitability and margins.

Risks & Headwinds (Slide 1)

• Intensifying competitive pressures driving pricing compression
• Regulatory divergence escalating compliance costs
• FX volatility challenging profitability and margins

Source: RemitTech: A Market Overview of the Digital Remittance Sector

The slide "Risks & Headwinds (Slide 2)" outlines key challenges in banking, including high operational costs from AML/KYC compliance and exposure to sophisticated cybersecurity threats. It also highlights inefficiencies from dependence on correspondent banking and single points of failure due to reliance on third-party rails.

Risks & Headwinds (Slide 2)

• AML/KYC compliance burdens drive high operational costs
• Cybersecurity threats expose systems to sophisticated attacks
• Dependence on correspondent banking limits efficiency, speed
• Reliance on third-party rails creates single points of failure

Source: RemitTech: A Market Overview of the Digital Remittance Sector

Digital remittances are poised for growth despite associated risks, with strategic opportunities in technology, regulation, and emerging markets. The closing urges accelerated growth and immediate investment, while next steps invite contacting them to explore opportunities.

Summary & Outlook

**Digital remittances poised for growth amid risks.

Strategic opportunities in tech, regulation, and emerging markets.

Closing: Growth accelerates. Invest now.

Next Steps: Contact us to explore opportunities.**

Source: RemitTech: A Market Overview of the Digital Remittance Sector