A Report by CYS Global Remit FinTech Development Unit
In a recent spotlight by Fintech News Singapore, Visa’s “Money Travels: 2024 Digital Remittances Adoption Report” unveiled compelling trends and findings, underscoring the surging significance of digital remittances across Asia.
Rise in Remittances
In 2023, remittances to low- and middle-income countries rose by 3.8%, reaching an impressive $669 billion. This increase highlights the growing reliance on remittances as a critical source of financial support in these regions.
Regional Variations
Positive Growth: Latin America and the Caribbean saw an 8% increase, with South Asia, East Asia, and the Pacific following closely at 7.2% and 3%, respectively.
Declines: The Middle East and North Africa faced a 5.3% drop, largely due to a steep fall in remittances to Egypt. Europe and Central Asia also experienced a slight decrease of 1.4% after enjoying significant gains in 2022.
Digital App Adoption
Digital remittances are fast becoming the go-to method for cross-border transactions, with the report highlighting a significant rise in digital app usage across all surveyed countries.
Humanitarian Needs
The study reveals that personal emergencies often outstrip humanitarian needs, showcasing the pressing human-to-human impact of digital transactions.
Survey Insights
Visa's comprehensive survey of nearly 45,000 remittance senders and receivers across 20 countries—including the United States, Canada, Mexico, Peru, Brazil, France, and several others in Europe and Asia—offered deep insights into remittance patterns, digital adoption, and barriers to seamless payments.
Key Takeaway
The findings indicate a major shift towards digital remittances, driven by the unparalleled convenience and efficiency of digital apps. This growth accentuates the pivotal role remittances play in sustaining families and bolstering economies in low- and middle-income countries.
At CYS Global Remit, we are embracing this market evolution by leveraging our digital payment platform to deliver seamless, secure, and efficient remittance services that align with our consumers' changing needs.
Source: fintechnews.sg
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