The market for remittances through mobile as a channel has posted strong growth in recent years. According to PayNXT360, Asia Pacific region is the largest remittance reciever in the world. Approximately 70% of Asia Pacific remittances came from Middle East, United States, and Europe. The three biggest remittance receiving countries were India (US$ 73 billion), China (US$ 68 billion), and Philippines (US$ 36 billion).
Adoption of mobile channel for remittance is expected to continue to fundamentally reshape the remittance market dynamics. Compared to banks and traditional money transfer operators, mobile phone-based remittance companies offer lower transfer fee and expenses. The mobile payment transaction value in India is expected to increase at a CAGR of 22.4% during 2018-2025, whereas Philippines is expected to record a CAGR of 25.9% during 2018-2025.
Mobile international and domestic remittance market is being targeted by a number of start-ups. As a result, PayNXT360 expects increased rate of innovation over the forecast period. Some of the key starts-ups include the following:
- Toast, from Singapore, is a peer-to-peer cash transfer tool that allows Hong Kong and Singapore based Filipino migrants to send cash straight from a smartphone. Senders can use bank transfer or purchase a toast top-up card to top up their toast account. Recipients may choose to pick up money or withdraw straight from the bank.
- Sendah is another gift remittance service for migrants. Sendah Remit is a Software-as-a-Service bank grade that helps global and national remittance operations to be interoperable across various networks.
- Toss is remittance service start up from South Korea and it has extended its offering with Toss Loans and Toss Finance Dashboard since its release in 2015.
- TNG Wallet serves retailers and end-users as a major e-wallet provider in Hong Kong. The cross-border billing function allows customers to move cash to over 800 banks across 12 nations from their TNG Wallet app. There is no transaction charge for customers.
- Bitspark is a remittance platform with headquarters in Hong Kong that leverages the Bitcoin network. They developed Sendy, a mobile application to send and receive payments. They also offer a free cloud-based platform for money transfer shops who use third party software to remit money. At present, Bitspark allows users to send money into three markets: the Philippines, Indonesia and Vietnam.
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