Remittance industry is growing rapidly and the increasing remittance also affects the GDP of the economy. Moreover, by the time and new developments in the technology will lead to the significant growth in the forecasted period. The great portion of the economy is directly dependent on the remittance and with the more innovations in the technology the remittance inflows are become less time consuming and smooth. According to the report analysis, ‘Remittance Industry Research and Market Reports’ states that the transferring of money to family or friend in another country with the digital transaction is become more effective and many of the key players are working with the technology in improving the efficiency and have a positive impact of the cross border transactions. Moreover, in a research it is expected that India is the world’s largest receiver of the remittance.
With the introduction of the digital transaction in the remittance industry it will lead to less expensive transaction and eliminate the existence of middle man which directly reduces the fee of the cross border transactions. According to the World Bank report, the international remittances anticipate to reach above USD 500 billion in 2017, whereas the global body is doing development in the technologies which will enhance the safety measures and have a productive impact on the cross border payments. The digital remittances can assist people everywhere and make their lives easier which enables them do to what they want to do with their money. According to the report analysis, ‘Market Research Reports for Remittance’ states that in the coming years UPI (Unified Payments interface) can be popularized in this segment of consumers and allow a huge scope for the instant payment mechanism whereas, the biggest advantage of this is that in need only a payment address and will make fund transfer even easier. Moreover, the banks were using NEFT and IMPS for such transfers, but in the recent trend with the UPI it would open another channel for instant deal. Moreover, in the next version of UPI is expected to introduce with collect mandate for consumers who will now be able to pay their recurring payments through UPI. In addition, with the more development in the technology the RBI approval for the new version of UPI and make the market of digital transaction more effective in the remittance industry.
In the developed countries the remittance industry will grow more significantly with the more innovations and the internet technology is proof to be secured and most efficient way of transferring. According to the World Bank, India is the vital country of migrant’s remittance inflows across the globe with USD 68,968 million and percentage of 11.2%. In the developed countries such as North America and Europe is expected to acquire the handsome amount of share in the remittance industry whereas, in UAE the major transfer of money is done with Ripple for developing a remittance transfer mechanism which make the cross border payment cheaper and efficient to the consumer. Therefore, it is expected that in the coming years the market of remittance with the digital transaction will grow more significantly over the decades and more the highly competitive market is doing more research and development in the digital transaction.
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Ankur Gupta, Head Marketing & Communications