The global digital cross-border transfers market is expected to grow at a CAGR of 12.58% from a value of $148.08 billion at the start of 2023 to reach $339.87 billion by 2030, according to the latest report by Prepay Nation.
UAE and Saudi Arabia were identified as two of the largest remittance hubs in the region, sending $39.6bn and $39.3bn respectively in 2022, which amounted to about 7% of the GDP of the two countries.Â
Increased mobile phone usage, online shopping, and the need for convenient, fast, and secure money transfer services are the primary drivers of this trend.
The growth in demand for these services has been driven by an increasing number of expatriates, particularly from India, Pakistan, Bangladesh, Egypt, Nepal, Sri Lanka, and the Philippines, who send money back to their home countries. This trend is expected to continue in the coming years. with the UAE and Saudi Arabia, each hosting over 22 million expatriate workers. Â
“The global shift from cash to digital payments has catalyzed the momentum of the digital revolution, and the Middle East is no exception,” said Paolo Montessori, CEO, Prepay Nation. “With this ongoing shift, consumers are exploring innovative solutions, such as productized 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.”Â
The company projected that 69% of payments in the region will be cashless by 2023.
