United States International Remittance Business Report 2024: Surge in Tech Layoffs to Dampen Market Growth in the Short Term - Forecast to 2028 - ResearchAndMarkets.com
United States international inbound remittance market has increased at 1.7% during 2023 to reach US$ 7.30 billion in 2024.
The "United States International Remittance Market Business and Investment Opportunities - Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics - Q1 2024" report has been added to ResearchAndMarkets.com's offering.
United States international inbound remittance market has increased at 1.7% during 2023 to reach US$ 7.30 billion in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 1.0%, increasing from US$ 7.18 billion in 2023 to reach US$ 7.61 billion by 2028.
Remittance outflow market in United States has increased at 6.3% during 2023 to reach US$ 88.65 billion in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 4.0%, increasing from US$ 83.39 billion in 2023 to reach US$ 103.89 billion by 2028.
This report provides a comprehensive analysis of the international inbound and outbound remittance market in United States. It covers the market opportunity by transaction value, transaction volume, average value per transaction, key market players, market opportunity by channel, consumer profile, and by sending / receiving countries.
In the face of rising inflation and low growth prospects, there is a risk of a decline in real income for migrants in 2024. The weaker job markets, coupled with tech layoffs, are expected to impact the growth of the remittance market in the United States. Nike, Intel, and Citi are among those that have announced plans to cut jobs in 2024. This trend is projected to have a significant impact on migrants' income, thereby affecting the growth of the remittance industry over the medium term.
The United States, however, continues to be the largest source of remittances. India, Mexico, and the Philippines are among the top remittance recipient countries. To make the remittance process more convenient, US-based payment firms are entering into strategic partnerships and this trend is projected to gain further momentum in 2024, opening new remittance corridors. Consequently, despite short-term challenges, the publisher maintains a positive growth outlook for the remittance market over the next five years.
The surge in tech layoffs is expected to dampen the growth of the remittance market in the short term
Fears about recession, coupled with revenue growth, resulted in many firms announcing cost-cutting measures including mass layoffs in 2023. This trend is projected to continue further in the United States in Q1 2024.
- Tech companies are cutting jobs at an increasing rate, with 23,670 workers laid off from 85 companies in January. This marks the highest number since March when almost 38,000 people were let go. The trend is gaining increasing momentum with SAP announcing changes affecting 8,000 employees, Microsoft cutting 1,900 positions in its gaming division, fintech startup Brex laying off 20% of its staff, and eBay slashing 1,000 jobs.
- Tech giants like Google and Amazon have also confirmed layoffs. Amazon, for instance, eliminated hundreds of positions spanning MGM Studios, Twitch, and Prime Video divisions. Google also cut several hundred jobs across the firm. The cost-cutting measures have been taken in response to rising inflation, recession concerns, and interest rate hikes. The rising adoption of artificial intelligence is another factor that is aiding the mass layoff trend in the United States.
With the trend projected to continue in H1 2024, these mass layoffs, especially in the tech sector, are expected to have a major impact on the growth of the remittance industry in the United States.
Firms are entering into strategic partnerships to simplify remittances and launch new corridors
To provide migrants with a more convenient and instant remittance service, payment providers are forging strategic alliances in the United States market. These collaborations are expected to drive the competitive landscape over the medium term.
- Visa and CIBC, in January 2024, entered into a strategic partnership to make it easier for the bank's customers to send money to their loved ones in different countries. Leveraging Visa Direct's money transfer features, CIBC and Simplii clients will soon have the option to send funds to digital wallets in important remittance destinations like the Philippines, China, Bangladesh, and Kenya. The new service is expected to be rolled out in H1 2024.
- Alviere, in January 2024, also entered into a strategic collaboration with Onafriq to enable remittances from the United States to Africa. Onafriq has chosen Alviere as the strategic partner since it is a licensed money transmitter throughout the United States and its territories.
Going forward, the publisher expects more such strategic collaborations, resulting in the launch of new corridors while also enabling instant remittances. This, in turn, will support the growth of the remittance market in the United States over the next three to four years.
Reasons to buy
- Comprehensive and Up-to-Date Information: The report provides comprehensive and up-to-date information on the United States international inbound and outbound remittance market, including market size, growth trends, transaction value, transaction volume, average value per transaction, and market share analysis by transfer channel, consumer demographics, and key countries.
- Understand Competitive Landscape: Get a high-level view of competitive landscape through market share data on key players in the market.
- Actionable Insights for Businesses and Investors: The report provides data centric analysis for businesses and investors operating in the United States remittance market. It helps them identify new opportunities, assess risks, and make informed business decisions.
- Forecasts for Future Market Growth: The report provides forecasts for future market growth, enabling businesses and investors to plan and strategize effectively.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 130 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $7.3 Billion |
| Forecasted Market Value (USD) by 2028 | $7.6 Billion |
| Compound Annual Growth Rate | 1.0% |
| Regions Covered | United States |
Scope
International Inbound Market Opportunity Trend Analysis in United States
- By Transaction Value
- By Transaction Volume
- By Average Value Per Transaction
Market Share of Key Players in United States
International Inbound Market Opportunity Trend Analysis by Channel in United States
- Digital (transaction value, transaction volume, average value per transaction)
- Mobile (transaction value, transaction volume, average value per transaction)
- Non-Digital (transaction value, transaction volume, average value per transaction)
International Inbound Remittance Analysis of Consumer Profile in United States
- Analysis by age group of senders
- Analysis by income of senders
- Analysis by occupation of senders
- Analysis by occupation of beneficiaries
- Analysis by purpose
International Inbound Remittance Flow Analysis (Country to State / Region) in United States
- Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
- Market share by transfer channel by key state / regions
International Outbound Market Opportunity Trend Analysis in United States
- By Transaction Value
- By Transaction Volume
- By Average Value Per Transaction
International Outbound Market Opportunity Trend Analysis by Channel in United States
- Digital (transaction value, transaction volume, average value per transaction)
- Mobile (transaction value, transaction volume, average value per transaction)
- Non-Digital (transaction value, transaction volume, average value per transaction)
International Outbound Remittance Analysis of Consumer Profile in United States
- Analysis by age group of senders
- Analysis by income of sender
- Analysis by occupation of sender
- Analysis by occupation of beneficiaries
- Analysis by purpose
International Outbound Remittance Flow Analysis (State / Region to Country) in United States
- Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
- Market share by transfer channel by key state / regions
For more information about this report visit https://www.researchandmarkets.com/r/pn7txi
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