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Report: Cross-border remittance market 'ripe for disruption'

April 25, 2016

Cross-border remittances are a big business: They totaled $582 billion in 2015; in 2016, they're expected to grow to $587 billion; and by 2020, says research and advisor firm Aite, they will hit an estimated $636 billion.

According to the new Aite Group report, "Cross-border Remittances Market Overview," The volume of remittances sent home often dwarfs official development assistance, and in many countries, remittances represent double-digit portions of gross domestic product.

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Despite the size and importance of these financial transactions, just a few monolithic players have traditionally dominated the industry, the report says, but notes that "a convergence of forces offers opportunity to rethink the traditional remittance model, making the industry ripe for disruption."

In the report, Aite examines the state of the industry, including global and regional remittance volumes and corridors, and the role migration plays in remittance pricing and competitors.