A brief overview of recent data shows a staggering number of individuals, families, and communities are being supported by global remittances. Given its role as a pillar of our international economy, it is important to understand what the future holds for global remittances.
In this article, we will look at the three technology trends that may soon define the coming decade of global remittances.
Innovation Is Changing the Remittance Industry
Before we get into global remittance technology trends, let’s briefly set the scene with some hard numbers.
In 2022 alone, the global remittance market will exceed $774 billion. And by the end of next year, that number could eclipse $810 billion. By 2027, remittances may reach $1.2 trillion. While there are many factors at play in this exciting trajectory, one element is most influential:
the proliferation of innovative technology.
OK–let’s look at the trends.
Trend #1: The Rise of Money Transfer “Super” Apps
Last month, we discussed the causes behind the 2020 remittance “boom.”
The reason behind the expansion was evident: the pandemic dramatically increased reliance on digital technology (specifically smartphones).
Forbes Magazine summed it up best, suggesting that 2020 was “the biggest catalyst for the growth of digital remittances ever. Four years of digital growth was compressed into two months in the money transfer space.”
While smartphones were certainly popular pre-pandemic, they became ubiquitous in the last several years.
In India, for example, smartphone penetration grew from 22% in 2017 to 60% in 2021.
The rise of smartphones paved the way for another major trend in the global remittance market: the rise of money transfer “super” apps.
Today, users can expedite the money transfer process with the convenience only a mobile app can provide.
While remittances used to require paperwork, patience, and time-consuming visits to the bank, money transfer apps give consumers financial power wherever and whenever they need it.
UniTeller’s P2P remittance brand, uLink, embodies this revolutionary trend. With the uLink app, consumers are empowered to send money to loved ones in a matter of minutes.
The process is fast, affordable, and most importantly, highly secure.
In fact, not only can users send funds directly to their loved ones’ bank accounts and cash-pickup, but they can even send directly to digital wallets or home delivery in select countries.
Trend #2: The Growing Potential of Blockchain
After fueling the meteoric rise of Bitcoin, blockchain technology became an overnight sensation.
But what is blockchain, exactly?
It’s a digital ledger that records transactions across a business network. To put it another way, it’s a powerful database with unprecedented levels of security.
Cryptocurrencies have used blockchain technology to track assets, and in the near future, global remittances may follow suit.
There are several reasons why blockchain is so popular (and why it may be the foundation of the future for the remittance industry).
For starters, blockchain technology is a fully encrypted, decentralized, and immutable ledger.
In other words, each transaction is highly secure and cannot be altered in any way.
Plus, because blockchain technology is decentralized, no intermediary bank or financial institution can get involved. Blockchain effectively eliminates the need for intermediaries.
That’s great news for remittance users, as it increases the level of protection for the business, the sender, and the eventual recipient.
Additionally, blockchain technology can provide greater convenience to consumers, as it fosters real-time transaction verification.
Historically, remittances have been rather slow, and while modern technology has expedited the transaction process, blockchain may further accelerate the process.
By combining each of these advantages, blockchain technology could help reduce the global average transaction cost of remittances and help fulfill one of the United Nations’ most significant Sustainable Development Goals.
Trend #3: Digital Remittance as a Service + White Label Solutions
While aiding economic growth, global remittances also present a major financial opportunity for businesses.
This hasn’t always been the case.
For years, the remittance industry has struggled to overcome the roadblocks and challenges that often arise from licensing issues, digital apps, managing payout partners, and more.
In other words, the payment industry’s barrier to entry has been impenetrable–until now.
Thanks to modern innovations, digital remittance as a service has become a powerful revenue stream for countless businesses. What is it, exactly?
In short, it’s a flexible, end-to-end remittance processing service that enables businesses to move funds across international borders.
UniTeller has helped pave the way for these innovations by creating a robust solution that empowers businesses to provide B2C remittance services to customers.
In fact, UniTeller’s Digital Remittance as a Service Solution provides a true one-stop, turnkey solution. With UniTeller, you get instant access to an expansive network of over 200,000+ paying locations in 80+ countries worldwide, which will ultimately enable you to scale your business globally.
And that’s only the beginning.
UniTeller’s White Label Solutions are a premier extension of our remittance services, as they offer a state-of-the-art experience for your brand.
Want to elevate your brand with our advanced technology? UniTeller’s White Label Solutions can unlock:
- Seamless API integration with no development efforts needed on your side.
- Comprehensive mobile app and website development.
- Integrated marketing capabilities and promotions.
- Access to UniTeller’s Money Transmitter Licenses in the U.S., Mexico, and Canada.
- Extensive global payment network.
- UniTeller’s fraud prevention model with zero fraud guarantee.
To explore our White Label Solutions, click here.
Partnering With UniTeller
These three trends are just the beginning of where technology can take the remittance market.
And when it comes to cross-border payments, UniTeller maintains the highest standard of excellence and innovation. As a fully licensed money transmitter in the United States, UniTeller remains intensely committed to providing international payment services with a transparent and flexible business model.
By partnering with UniTeller, you’ll also gain access to our Customer Service department, available seven days a week.
Plus, as a UniTeller Selling Agent, you will have total confidence in the money transfer services you provide with access to our extensive network of over 200,000 paying locations in over 80 countries worldwide.
It’s fast. It’s reliable. And it’s trusted by countless customers and business owners across the United States.
Want to learn more about becoming a UniTeller Selling Agent? Click here to get started.