Analysis reveals 2023's state of international money transfers (remittances)
The remittance industry concluded FY 2023 with growth, despite macroeconomic challenges, as reported by a new study. The industry experienced steady growth in 2023 and 2024, with global remittances reaching a record $905 billion in 2024, reflecting a 4.6% increase from 2023.
The study analysed the earnings calls of key publicly traded consumer money transfer and remittance companies, including Western Union, Euronet's Money Transfers segment, Wise, and Remitly. These companies are focusing on building approaches to develop within the current constrained economic reality.
In terms of digital transformation, the digital remittance market was valued at approximately $27.47 billion in 2024 and is expected to grow robustly at a CAGR of 17.4% from 2025 to 2032, reaching nearly $99 billion by 2032. The Asia Pacific region, driven by China, saw rapid advancements due to high smartphone penetration, government support, and partnerships between remittance providers and local financial institutions.
The report highlights an increased mention of 'new opportunities' during earnings calls in the remittance industry. One of these opportunities is the adoption of artificial intelligence (AI). Western Union, Euronet's Money Transfers segment, Wise, and Remitly have increased mentions of AI during their Q4 2023 earnings calls, with all companies adopting long-term strategies for growth, including the incorporation of AI.
However, the report does not provide information on the specific macroeconomic headwinds impacting the remittance industry or the specific strategic plays or long-term approaches being adopted by companies other than those mentioned.
Notably, Western Union was the only company to experience a contraction in revenue growth in Q4 2023. In contrast, Wise and Remitly are the top performers in digital money transfer revenues, increasing by 25.6% and 38.2% YoY respectively, surpassing Western Union's growth.
Lucy Ingham, Editor-in-Chief and Head of Content at the platform, stated an increased level of discussion on strategic plays and longer-term approaches to delivering growth in the remittance industry. She also stated that the platform will be closely tracking whether AI will present opportunities for the remittance space over the course of 2024.
AI adoption in the remittance sector is increasingly significant, especially in fraud detection, compliance, and operational efficiency. For example, in the U.S., the remittance market is shifting from agent-based models to digital-first platforms that integrate AI-driven solutions for anti-money laundering (AML), Know Your Customer (KYC) processes, biometrics, and blockchain to enhance security, transparency, and trust. These technologies help companies handle increased regulatory scrutiny while keeping costs lower and improving customer experience.
Key growth trends and AI adoptions include the continued rise in remittance volumes globally, especially to low- and middle-income countries (LMICs). There is also a shift toward remittances supporting investment and productive capital (real estate, small business funding) rather than just consumption.
Overall, 2023 and 2024 have been marked by strong growth in remittance volumes combined with swift digital transformation, where AI technologies play a central role in compliance, security, efficiency, and customer-centric innovations in the remittance industry. The industry is poised for continued growth, with AI set to play an increasingly important role in its future.
- The remittance industry's focus on building strategies within the current economic reality involves a significant adoption of artificial intelligence (AI), particularly in areas such as fraud detection, compliance, and operational efficiency.
- The report on the remittance industry indicates a rapid growth and digital transformation, with AI technologies playing a crucial role in enhancing security, transparency, and trust, ultimately positioning the industry for continued success in the future.
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