The report titled “South
Africa Domestic and International Remittance Market Outlook to 2023 - By
Channels Used (Banking Channels, Retailers, ADLAs & MTOs and Others),
Remittance Corridors (Inbound-Outbound and Rural-Urban)” provides a
comprehensive analysis of South Africa’s Remittance Market including market
evolution, overview, genesis, market size and market segmentation. Extensive
focus has been placed in quantifying the transaction value and volume over the
period, 2013-2023. The report covers aspects such as market segmentation (by
channels used, by corridors and by income level) and an extensive snapshot on
the bill payment market in South Africa. The report has covered the
international and domestic space exclusively focusing on over the year’s
computation & interpretation of change in volume, value and average ticket
size of transactions in the country. Income earned & change in commission
charged has been scrutinized well followed by explicit analyst explanations.
Competitive landscape of major players including ABSA Bank, Capitec Bank,
Bidvest Bank, Standard Bank, Western Union, MoneyGram, Hello Paisa, Mama Money,
Mukuru, Shoprite, SPAR, PEP Stores and Pick n Pay have been covered including
company overview, major business strategies, USP, distribution network,
remittance services offered, financials and various other parameters. The
report also covers future industry analysis (by value, volume and average
transaction size), future market segmentation, SWOT analysis, growth
opportunities, upcoming trends & analyst recommendations.
The report is useful for existing remittance companies,
potential entrants, investors and other stakeholders to align their market
centric strategies according to ongoing and expected trends in the future.
Market Overview
(Current and Future):
South Africa domestic and international remittance market are highly
concentrated and in the growth stage. The market includes both formal and
informal payment service providers including banks, money transfer operators,
ADLAs, retailers and mobile wallets. Prominent business strategies adopted by
major players to position themselves in the market include forming an extensive
network & improved reach, new services launched & service innovation
and better pricing & handy/transparent operations offered. The market has
been fuelled by increased migration, rising government support for new
competitors, declining fee charges and increased awareness towards digitalized
remittance services.
South Africa
International Remittance Market
Market Size: South Africa international
remittance market recorded a CAGR of close to -1% in terms of average
transaction size and close to -2% in terms of volume & value of transaction
during 2013-2018. The market showcased a slow & negative growth owing to
low purchasing power & high cost associated with remitting money in both
inbound & outbound space. Outbound remittance has captured close to half of
the market size by value in 2018 declining consistently since 2013.
By Channel: International remittance market was
led by banks and MTOs & ADLAs showcasing a robust CAGR close to 3% and 8%
respectively during 2013-2018. ADLAs penetrated the market in 2015 and have
been rising ever since. Retailers
experienced a CAGR close to -1% in terms of value while the other players
including post offices and hawalas experienced a double digit negative CAGR
during 2013-2018 losing their share to other more organized players.
By Corridors: Inbound remittance flow corridors
are dominated by United Kingdom followed by New Zealand, Australia and Angola
respectively. Other countries namely, Canada, United States and Botswana
witnessed exhibiting small share close to 15%. Owing to its proximity and
availability of numerous job opportunities, United Kingdom has been the market
leader magnetized by majority of emigrants. Outbound flow corridors, on the other
hand, are dominated by Zimbabwe followed by Lesotho and Mozambique
respectively. The outbound corridors consist of the SADC countries bordering
South Africa wherein foreigners tend to move to a more established country with
more stable Economy.
Competition Stage and
Positioning: The
international market is concentrated with majority of the market being captured
by MTOs & ADLAs in 2018. There are 4 major banks namely ABSA Bank, Capitec
Bank, Standard Bank and Bidvest Bank which have been active in the space. 2
major MTOs include Western Union and MoneyGram while major 4 ADLAs include
Hello Paisa, Mama Money, Mukuru and Exchange4Free. Major 4 retailers include
Shoprite, PEP Stores, Pick n Pay and SPAR.
Major competing parameters include fees charged, time taken for the
transaction, services offered, reach of the service providers, trust value
attached, technological advancements, promotional offers and transparency in
costs. The market has become highly competitive in terms of the fee charged
after the penetration of the ADLAs offering low fees to the customer’s thereby
increasing competition.
Future Projections: The market is expected to showcase a CAGR
close to 6% and -4% by value and volume of transactions during 2018-2023. In
terms of average transaction size the market is expected to register a CAGR
close to 3% during the same.
South Africa Domestic
Remittance Market
Market Size: South Africa domestic remittance
market recorded a CAGR of close to 3% in terms of average transaction size and
close to 6% & 3% in terms of transaction value and volume during 2013-2018
respectively. The market showcased a positive growth with the entry of ADLAs
& with the rise in government initiatives to push the market forward.
Players witnessed rising profits owing to increase in the commission charged
year-on-year averaging a CAGR of close to 15% during the review period. This
thus, accelerated the income earned by the players at a CAGR of more than 20%
during the review period.
By Channel: Domestic remittance market was led
by banks with highest market share showcasing a CAGR close to 1% during
2013-2018. Retailers followed by Mobile wallet companies acquired the second
and third highest share in the base year. MTOs witnessed strong growth during
2013-2018 by value of transactions. Other players including post offices and
hawalas experienced a decline in popularity with the coming up of other
organized gateways.
By Corridors: Highest amount of money has been
remitted between urban to rural in 2018. This has been followed by Urban to
urban channel with Rural to Urban having a minor share.
Competition Stage and
Positioning: The
domestic market is highly concentrated with majority share being captured by
Capitec Bank, First National Bank, ABSA Bank, Bidvest and Mukuru in 2018 in
terms of value of transactions.
The market is expected to showcase a CAGR close to 12% and
-7% by value and volume of transactions during 2018-2023.
Key Segments Covered in
South Africa International Remittance Market
By Channels used (Value
of Transactions)
Banking channels,
ADLAs & MTOs
Retailers
Others
By International
Inbound Remittance Flow Corridor (Value of Transactions)
United Kingdom
New Zealand
Australia
Angola
Others
By International
Outbound Remittance Flow Corridor (Value of Transactions)
Zimbabwe
Lesotho
Mozambique:
Others
By Work Profile (Value of Transactions)
Key Segments Covered in
South Africa Domestic Remittance Market
By Channels used (Value of Transactions)
Banking channels,
ADLAs & MTOs
Retailers
Others
By Domestic Remittance
Flow Corridor (Value of Transactions)
Urban to Rural
Urban to Urban
Rural to Urban
By Work Profile (Value of Transactions)
Key Target Audience
Banks
Money Transfer Operators
ADLAs
M-Wallet Companies
Hawalas
Convenience and Retail Stores
Supermarket Chains
South Africa Reserve Bank
Bills and Payments Companies
Investors & Venture Capital Firms
Time Period Captured in
the Report:
2013-2018 – Historical
Period
2019-2023 – Future
Forecast
Companies Covered: ABSA Bank Limited, Albaraka Bank
Limited, Bidvest Bank Limited, BNP Paribas SA – South Africa Branch, Capitec
Bank Limited, China Construction Bank-Johannesburg Branch, Citibank-South
Africa, Deutsche Bank AG-Johannesburg Branch, FirstRand Bank Limited, Habib
Overseas Bank Limited, HBZ Bank Limited, HSBC Bank PLC–Johannesburg Branch,
Investec Bank Limited, JPMorgan Chase Bank-Johannesburg Branch, Mercantile Bank
Limited, Nedbank Limited, Sasfin Bank Limited, Société Générale, Standard Chartered
Bank–Johannesburg Branch, State Bank of India, The South African Bank of Athens
Limited, The Standard Bank of South Africa Limited, First National Bank, Bank
of Baroda, Bank of India, Bank of China, Bank of Taiwan, Western Union , Money
Gram, Hello Paisa, Mama Money, Mukuru, Exchange4Free, Imali Express (Pty), Ace
Currency Exchange (Pty), Forex World (Pty) Limited, Global Foreign Exchange
(Pty) Limited, Inter Africa Bureau de Change (Pty) Limited, Interchange RSA
(Pty) Limited, Master Currency (Pty) Limited, Sikhona Forex (Pty) Limited,
Tourvest Financial Services (Pty) Limited, American Express Foreign Exchange
Services, Tower Bureau de Change (Pty) Limited, Travelex Africa Foreign
Exchange (Pty) Limited, Southeast Exchange Company (South Africa), Terra
Payment Services South Africa (RF) (Pty), WorldRemit South Africa (Pty)
Limited, Shoprite, Pep Stores, Pick n Pay, Checkers, Spar, Ackermans and
Boxers.
To Know More About this
report follow this link:-
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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249