Inward Remittances - North America
North America- Total transaction value in the Inward Remittances market is projected to reach US$*****bn in ****.
- Total transaction value is expected to show an annual growth rate (CAGR *********) of ****% resulting in a projected total amount of US$******bn by ****.
- In the Inward Remittances market, the number of users is expected to amount to *****m users by ****.
Definition:
Remittances are fundamentally an international transfer of money, typically across international borders. Remittances can be viewed from two perspectives: Inward and Outward Remittances. Inward Remittances involves receiving money from abroad. The Inward Remittances market refers to the flow of money sent from migrants or expatriates working abroad to their home countries. These funds are typically used to support families, cover living expenses, and contribute to local economies. Remittances have become a crucial and stable source of funds for many developing economies, often surpassing export earnings or foreign direct investment. However, measuring Remittances is challenging due to the large number of small, heterogeneous transactions conducted through various formal and informal channels. Informal Remittances often go unrecorded, making comprehensive data collection difficult. Some countries use a combination of direct reporting, surveys, and model-based approaches to estimate Remittance flows, though the reliability of these estimates depends on the quality of input data and assumptions, which are often difficult to verify.Additional Information:
In theory, the Inward and Outward Remittances market values should balance out and be equal because Remittances are financial flows between countries. However, practical issues such as data collection methods, informal channels, fees, and timing lead to a mismatch in the reported figures. The focus on Inward Remittances in developing countries, which rely heavily on these flows, often results in better tracking of inflows than outflows. The figures therefore differ in the respective markets.- Online Cross-border payments into the selected region
- Personal transfers documented under the secondary income-category of the current account of a country's Balance of payments
- Compensation of employees including wages, salaries, and benefits of border, seasonal, and other nonresident workers (e.g., embassy staff), recorded under the primary income-category of the current account
- Cross-border payments via traditional service providers (banks, post offices & Western Union, MoneyGram)
- Online Cross-border payments out of the selected region
- Payments via social networks
- Domestic payments and bill splitting services
Transaction Value
Users
Analyst Opinion
The Inward Remittances market, where migrant workers send money back to their home countries, remains crucial for many low- and middle-income countries, providing essential support for household consumption, healthcare, and education.
Despite global disruptions like the COVID-19 pandemic, remittance flows have shown resilience, especially in countries such as India, Mexico, and the Philippines. Digital remittances, driven by fintech platforms like Remitly and Wise, are transforming the market, offering faster, cheaper, and more transparent services, although average global transfer costs remain high.
Looking ahead, the continued growth of digital remittances, mobile money services, and blockchain-based solutions is expected to reduce costs and increase financial inclusion in developing regions. However, challenges such as high fees, economic uncertainty, and complex regulatory requirements persist. Governments will play a key role in shaping the future of the inward remittance market through migrant-friendly policies and regional cooperation. Despite these challenges, remittances will continue to be a vital source of income for millions of families worldwide.
Methodology
Data coverage:
The data encompasses personal remittances as well as migrant stock data. Figures are based on "personal transfers" and "compensation of employees" recorded in the Current Account of the Balance of Payments framework, which records a country's transactions.Modeling approach / Market size:
Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the World Bank, annual market size estimates, country flow estimates, third-party reports, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, inflation rates, exchange rates, unemployment, consumer spending, internet penetration, and online banking penetration. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use multiple linear regression method to forecast future development. The main drivers are GDP growth rate, exchange rate fluctuation, inflation rate, and migrant population growth.Additional notes:
The inward remittances market uses calculations from the World Bank and its KNOMAD division as a base, including annual market size estimates, bilateral country flow estimates, and a database on remittances prices. In theory, inward and outward remittances should balance out and be equal because remittances are financial flows between countries. However, practical issues such as data collection methods, informal channels, fees, and timing lead to a mismatch in the reported figures. The focus on inward remittances in developing countries, which rely heavily on these flows, often results in better tracking of inflows than outflows. The figures therefore differ in the respective markets. The market is updated twice a year in case market dynamics change.Finance
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