Prepay Nation, a B2B marketplace for prepaid products has released its first white paper ‘The Evolution of Cross-Border Transfers’. The document highlights a notable surge in demand for cross-border transfers within the Middle East, with a distinct focus on sophisticated and productised remittances.
According to recent data, the global digital cross-border transfers market was valued at $148.08 billion at the start of 2023, and is expected to grow at a CAGR of 12.58% to reach $339.87 billion by 2030.
This trend is being driven by increased mobile phone usage, online shopping and the need for fast and secure money transfer services, particularly in the UAE and Saudi Arabia, two of the largest remittance hubs in the region.
They sent $39.6 billion and $39.3 billion respectively in 2022, amounting to about 7% of the GDP of the two countries. The growth in demand for money transfer services is also a direct result of an increasing number of expats in the Middle East, particularly from India, Pakistan, Bangladesh, Egypt, Nepal, Sri Lanka and the Philippines, who often send money back to their home countries.
The report suggests that cross-border transfers go beyond cash transfers and there has been an increased demand for purpose-driven remittances from expats – especially unbanked customers – who want to have greater control over their finances. This has led to a more diverse variety of prepaid digital vouchers, including products such as airtime top-ups, data, bundles, gift cards, and utility bills. Airtime top-ups have become increasingly popular in the Middle East, where mobile phone usage is high, and people often rely on airtime to stay connected to their family and friends back home.
“The global shift from cash to digital payments has catalysed the momentum of the digital revolution, and the Middle East is no exception.” Paolo Montessori, CEO of Prepay Nation said.
“With this ongoing shift, consumers are exploring innovative solutions, such as productised remittances. These solutions provide a comprehensive one-stop approach, enabling individuals to stay connected with their loved ones while gaining enhanced control and value over their financial transactions,” he added.
See full report here
……….
Subscribe to the Seamless Xtra weekly NEWSLETTER
See our latest daily updates on LinkedIn
Photo by Towfiqu barbhuiya via Unsplash
……….
