Quarterly remittances exhibited a steady increase in the final months of 2021
In the final quarter of 2021, the remittance market demonstrated remarkable resilience, defying the odds against a backdrop of ongoing Covid-19 disruptions and the escalating Russia-Ukraine conflict.
One of the standout performers was Remitly, which reported a significant 69% growth in Q4. This impressive growth is attributed to the company's ongoing expansion of its business globally.
Similarly, Intermex, a retail player in the remittance market, also recorded strong growth in Q4. The growth in the consumer money transfer segment, despite the challenging circumstances, suggests a steady recovery.
Traditional players in the market, such as Western Union and MoneyGram, also made strides in digital transformation to counteract declining cash retail. Western Union's Q4 growth was a modest -1%, a slight improvement from the -0.2% dip in Q3. MoneyGram, on the other hand, saw a slight improvement in its Q4 growth, with flat year-on-year figures, up from a -1% drop in Q3. This growth was due to the companies' focus on digital services.
Euronet, another major player, reported a commendable 10% growth in its money transfer segment, a testament to the company's focus on its platform offering.
Interestingly, new entrants like Remitly are gaining ground by primarily competing on prices. Companies such as Revolut, Profee, Key Currency, and Regency FX are known for their competitive pricing and speed on various corridors, offering the lowest fees and best exchange rates for international money transfers.
In other news, Western Union has a new CEO, which suggests potential for fresh moves from the company in the coming quarters. Meanwhile, MoneyGram's impending acquisition by Madison Dearborn Partners is expected to close, with no other bidders appearing in the 30-day go-shop period.
However, the Russia-Ukraine war continues to disrupt remittance flow norms, and with Covid-19 cases beginning to rise again, the market may face further challenges in the near future. Nonetheless, the resilience shown in Q4 2021 offers a glimmer of hope for a steadier 2022.
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Nepal's Journey: Evolution from Street Life to Political Power
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
