Overview: Remittance refers to that process in which
transfer of money is done by a foreign worker to any individual in their home
country. Most of developing countries are depending on the remittance which
comes from the foreign worker. Not only has this the GDP of developing
countries also affected by the remittances received and lead to the economic
growth. In the past few years the global remittances is totaled in billions.
Some countries such as India, China and others receives tens of billions of US
dollars as remittances. Accordingly to the World Bank, it is estimated that
remittance will total USD 585.1 billion in 2016. Moreover, according to the
report analysis, Remittance
Market Research Report’ suggests that remittance is having significant
impact on the development of the economy growth with the increase in the income
of the foreign workers.
Outlook: Transfer of money at home places from abroad
through bank is bit costly and time consuming process whereas converting
currencies also occur loss and need excessive time for transfer approvals. For
making effective transaction blockchain platforms are established in which
usage of bitcoin is done. The platform of blockchain are able to reduce fees
and transfer money more quickly. The old system with the banks has been bogged
down and blockchain technology is creating a new payment network that can be
helpful majorly for the foreign workers as well as businesses. The applications
of blockchain for remittance is broadly classified across the globe which
includes no higher cost of transfer, high speed, simplified experience,
elimination of middle man, security measures, privacy measures and others.
Moreover, governments are using this technology related to concern over
terrorists and criminals to move their money around the world. Blockchain is
observed as opening the door to working with underdeveloped markets,
particularly those in Africa as well as in countries throughout Asia. Whereas,
the World Bank estimated that India had USD 69 billion as remittance in 2015 while
China had USD 64 billion, Mexico had USD 25 billion and Nigeria had USD 21
billion. Additionally, evolution is continue in the technology of blockchain
across the all types of applications which will help in remittance and
generating more options related to sending and receiving money anywhere in the
world. Therefore, the blockchain is very much reliable and secure thus prevents
hackers. Not only has this, the key players are doing well in developing more
application and reducing the average cost of transfer.
Market Size: According to the report, ‘Remittance
Industry Analysis’ suggests that the remittance in many countries has
gone up and in the coming years it will grow more significantly. Globally,
significant growth is seen in the urbanization and there is tremendous increase
in the urban population. Due to the transparency also the usage of blockchain
is done majorly and can be easily accessed by the users. The rapid growth in
the remittance industry is currently influencing the global GDP at a rate of
2.5% which is observed by the World Bank. Remittances from foreign workers made
up a big chunk majorly of many Asian Nations’ GDPs. Additionally, the
blockchain is the fastest-emerging technology and it is the key to a safe,
cost-efficient, and fast money transfer channel that can support the needs of
the Asia remittances industry.
Competition: Transfer of money can be done through bank to
bank or with the help of independent agencies whereas, an independent agency
includes PayPal, RIA, Western Union and others and banks include Bank of
America, DBS Bank, Citi Bank and others. In addition, establishment of many new
companies is done in the past recent year which includes Money Gram, Western
Union and others which are resistant to adopt this new technology whereas
willing companies will drive the market of remittances and providing much
reliable, cheaper and faster money transfer using blockchain network. Moreover,
remittances in Southeast Asia is a huge market, and many believe it’s ripe for
innovation. Whereas, key player such as Coins.ph partners with banks and other
financial institutions to make the remittances possible more significantly at a
reasonable fee.
Conclusion: With the more development in the technology
of blockchain in the remittance industry will result in the entire industry.
Many key players are doing their job more efficiently and investing more in the
industry which will lead to growth in the coming years over the decades and
increase the knowledge related to blockchain also admire the growth of the
remittance industry.
For more information, click on the link below:
Contact Us:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-9015378249
No comments:
Post a Comment