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Visa鈥檚 new partnership to enable remittances in WeChat Pay wallets is a case in point. In one swoop, it connects Visa Direct to more than 1 billion users in China within a hard-to-penetrate market. Networks will innovate to monetize data.

Consumer Remittance Payments. Remittance volume will continue to increase worldwide despite macroeconomic headwinds. Growth will remain below retail while increasing incrementally on an annual basis, driven by outflows from the US and inflows to top markets like India and Mexico. Key Trends We鈥檙e Watching. Digital Remittances Continue to Drive Growth.

By making cross-border payments cheaper, Wise can tap a huge market: Remittance inflow to India will reach $103.88 billion this year, per Insider Intelligence forecasts. And Wise鈥檚 higher savings rates can help it stand out from lenders offering weak returns in the UK.

The news: PayPal is reportedly exploring the sale of its remittance service Xoom, according to The Information, which cited a person familiar with the matter. The payments firm is working with Goldman Sachs on the sale and looking for prospective buyers.

In June, remittance company Western Union partnered with API issuer-processor Marqeta to issue virtual and physical credit cards. Just days later, Western Union announced a deal with cloud banking platform Mambu to power Western Union鈥檚 digital banking app WU+. The banking app offers a standard or premium tier, and is in pilot in Germany and Romania.

Retail, remittance, and cross-border B2B payments continue to draw in market participants. Read the full report.

Their digital business models might also let them cut out payment intermediaries to offer faster remittance speeds. Western Union鈥檚 and MoneyGram鈥檚 digital business growth before and during the pandemic is a further testament to the evolving remittance landscape.

Worldwide remittance inflows are expected to hit $810.79 billion in 2023, according to Insider Intelligence forecasts. The bigger picture: While legacy remittance firms struggle to sustain volume growth, Wise has been ramping up its product suite. The fintech plans to increase its headcount by 250 next year, in sharp contrast with the wider macroeconomic headwinds affecting the tech sector.

Together they target P2P payments, remittances, refunds, payouts, and other payments, reaching:. 10 card networks. 69 ACH schemes. 17 mobile wallets. 3 payment gateways. 40 RTP markets. On the B2B side, Visa and Mastercard are also expanding their payment flows through Visa B2B Connect and Mastercard B2B Hub.

The Hispanic remittance market is substantial. Remittance outflow from the US will total $76.99 billion in 2022, according to our forecast. Mexico remains the top destination country: 95.5% of the estimated $56.24 billion in remittance inflow to Mexico in 2022 will come from the US. Guatemala is in the fifth spot.

Why it鈥檚 worth watching: Worldwide remittance inflows are expected to hit $774.20 billion in 2022, per Insider Intelligence forecasts. Next year, we expect it to reach $810.79 billion. Here are two major trends influencing remittance growth:. Growing digitization.

Remittance startup Pomelo raised $20 million in seed funding, per TechCrunch. The startup offers a unique business model: Migrant workers can transfer money to loved ones abroad in the form of credit. A Pomelo account comes with up to four Mastercard credit cards that remittance senders can set limits on and view spending information for.

The Hispanic remittance market is substantial. Remittance outflow from the US will total $76.99 billion in 2022, according to our forecast. Mexico remains the top destination country: 95.5% of the estimated $56.24 billion in remittance inflow to Mexico in 2022 will come from the US. Guatemala is in the fifth spot.

Why it鈥檚 worth watching: Worldwide remittance inflow is expected to hit $794.54 billion in 2023, up from $775.13 billion last year, per Insider Intelligence forecasts. But high fees, cost transparency, and payment speed still impede these types of transactions. Cross-border payments often require intermediaries to convert currencies, which is one of the biggest cost drivers.

Unlike other regions, LACA still relies heavily on in-person remittances: While Brazil鈥檚 Western Union-owned locations only accounted for 5% of the firm鈥檚 retail footprint, they accounted for more than 50% of its revenues in the country. Digital growth in key markets.

The Canadian Post already offers products and services such as international remittances, money orders, and prepaid gift cards that together amount to five million transactions worth $2 billion a year. Financial exclusion in Canada: Postal banking existed in Canada until 1968, when the program folded due to intense lobbying from the banking sector.

And then crypto themselves, things like remittances and cross-border payments are absolutely improved by blockchain technology. Grace Broadbent:. Yeah, I agree with that. I'd say there's a lot of use for crypto overall and blockchain technology in the payment sector like remittances and B2B payments, like Tyler said. Rob Rubin:. Are B2B payments really ready for it though?

The news: Western Union will let customers in Vietnam receive remittances through local super app MoMo, per a press release. Why it matters: Working with MoMo gives Western Union increased access to a major remittance market. Remittance inflow in Vietnam is expected to hit $19.56 billion in 2023, according to Insider Intelligence forecasts. That鈥檚 2.5% of worldwide remittance inflow.

Gardner pointed to Marqeta鈥檚 partnership with Western Union for this pillar: The remittance firm will use Marqeta鈥檚 issuing capabilities to offer customers virtual and physical cards through its new digital banking platform. He also highlighted Marqeta鈥檚 tie-up with Branch and Uber to power the Uber Pro debit card. Broadening customer support capabilities.

Late last year UK-based Revolut made moves into Mexico and Latin America by naming a new CEO to head the entry into the market and by launching remittance services between the US and Mexico.

Other paper-heavy use cases like bill and rent payment, donations, or remittances鈥攚hich our study found to be in high demand鈥攃an increase growth. Banks and P2P services both may try to make inroads in subscriptions and installments, where there is demand for transfers as well, per GoCardless. The forthcoming Real-Time Rail (RTR) system should bring new use cases to fruition.

Pana targets Latin American communities with fee-free remittances and a 鈥渟ocial banking鈥� platform that helps users develop credit profiles. Others designed products for low-income communities and people struggling with overdue debts:. Remynt takes on the 鈥減utative鈥� ecosystem of lending and debt servicing.

And reducing costs helps smaller merchants compete with their larger counterparts鈥攊t also lowers remittance barriers. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client? Click here to subscribe.

It has also expanded its cash bill-pay network, diversified remittance suppliers, and extended remittance reach. US neobank One adds digital banking. Acquired this year by Walmart鈥檚 majority-owned fintech, One provides debit cards, savings and checking accounts, and an app that helps people track their budgets.

It's had remittances, it's had prepaid. It's been a lifeline to the underbanked in this country. So it's got a real foundation there and you know that it's ramped up its own FinTech operations, has neobanking aspirations within that. It's already gotten that started by transitioning it's branded prepaid cards into essentially neobank checking accounts. So it's got a lot going on there.