New research from Mercator Advisory Group examines the state of global consumer remittance flows and select international remittance service providers
In just over 20 years, remittances, or the money sent by an individual back home or to another country has grown from under $50 billion (USD) to over $600 billion a year. Remittance flows are extremely resilient and the ongoing economic and financial malaise across Europe and other developed markets did little to slow the more than 11 percent compound annual growth rate between 1990 and 2012.
As the segment has grown, so has the number of established and new players, operating models (ranging from large physical footprints and agent networks to minimal overhead and operating online), and technologies like mobile and prepaid remittance platforms used to send money more efficiently and effectively around the world.
"The United States represents the largest source for remittance outflows to many countries around the world, but within the Western Hemisphere, the importance of the remittance corridors between the U.S. and its Southern neighbors cannot be understated. The significant role the U.S. plays in outward remittance flows to Central and South American countries is exemplified by remittance inflows to Mexico, which totaled an estimated $23 billion in 2012, fourth largest in the world, of which the vast majority were sent from the United States," comments Tristan Hugo-Webb, Associate Director of the International Advisory Service at Mercator Advisory Group and primary author of the report.
The report is 27 pages long and contains 11 exhibits.
Companies mentioned in this report include: Citibank, Delgado Travel, MoneyGram, Ria Financial Services, Sigue Visa, Wells Fargo, Western Union, Willstream, and Xoom.
Members of Mercator Advisory Group's International Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits.