BERWYN, PA — In a recent white paper, Chester County-based Prepay Nation has highlighted the rapid growth and evolution of cross-border transfers within the Middle East, with a particular emphasis on the rise of productized remittances.
According to data cited in the report, the global digital cross-border transfers market was valued at $148.08 billion at the beginning of 2023. The market is projected to grow at a compound annual growth rate (CAGR) of 12.58%, reaching an estimated $339.87 billion by 2030. This growth is driven by increased mobile phone usage, a rise in online shopping, and a growing demand for convenient, swift, and secure money transfer services.
The United Arab Emirates (UAE) and Saudi Arabia are two of the largest remittance hubs in the region. In 2022, these two nations sent a staggering total of $39.6 billion and $39.3 billion respectively, accounting for approximately 7% of each country’s GDP.
The surge in demand for reliable and affordable money transfer services in the Middle East is largely attributed to the increasing number of expatriates in the region. Many of these individuals, hailing from countries such as India, Pakistan, Bangladesh, Egypt, Nepal, Sri Lanka, and the Philippines, regularly send money back to their home nations. This trend is expected to continue in the foreseeable future. The UAE and Saudi Arabia, each hosting over 22 million expatriate workers, serve as major sources of remittances to home countries in Asia and the Middle East.
Interestingly, Prepay Nation’s report indicates that cross-border transfers have evolved beyond simple cash transfers. There has been a marked increase in demand for purpose-driven remittances, particularly among unbanked customers who desire more control over their finances. This has led to a rise in the variety of prepaid digital vouchers available, including products such as airtime top-ups, data, bundles, gift cards, and utility bills. Airtime top-ups have become particularly popular in the Middle East, where high mobile phone usage and the need to stay connected with family and friends back home drive demand.
Paolo Montessori, CEO of Prepay Nation, commented on the evolution of the market, saying, “The global shift from cash to digital payments has catalyzed the momentum of the digital revolution, and the Middle East is no exception.” He added that recent projections indicate that 69% of payments in the region will be cashless by 2023. As this shift continues, consumers are exploring innovative solutions, such as productized remittances.
These solutions offer a comprehensive one-stop approach, enabling individuals to maintain connections with their loved ones while gaining enhanced control and value over their financial transactions. As the demand for productized cross-border transfers services surges, companies like Prepay Nation are strategically expanding their offerings to meet evolving customer needs.
Prepay Nation plays a pivotal role in integrating billions of customers from emerging economies into the formal financial system through the expanding prepaid market. Prepaid services benefit both customers and businesses by providing financial inclusion, steady income flow, and reduced risks. Given the trends highlighted in the report, these services are expected to become even more popular in the coming years.
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