Consumers are increasingly embracing digital solutions to send remittances to help loved ones living abroad, according to MoneyGram International, the money transfer service provider, which has released the latest instalment of its annual remittance report.
The MoneyGram report, ‘2024 State of Remittances – Through the Lens of the Consumer‘, is based on an extensive survey of over 1,000 US remittance consumers, and offers insights into the evolving landscape of international money transfers and the increasing reliance on digital solutions to support loved ones abroad.
Economic challenges, such as geopolitical unrest and inflation, continue to impact people across the globe. In response, consumers appear to be turning to remittances more than ever as a means of connection and support for friends and family.
The report reveals that a significant majority of US remittance consumers (89 per cent) feel closer to their loved ones when they provide financial support, underscoring the emotional importance of these transactions.
Consumers reported increasing remittance amounts to help loved ones abroad cope with inflation (62 per cent), geopolitical issues (59 per cent) and the impacts of natural disasters (57 per cent). The top reasons for sending money abroad include helping with unexpected situations like emergency medical bills (44 per cent), ongoing support for essential needs like food and housing (42 per cent) and aiding those affected by global events (27 per cent).
“Every international money transfer tells a story of unique individuals coming together in the spirit of care and support,” said Alex Holmes, chairman and CEO at MoneyGram. “As the remittance industry evolves, so does our commitment to developing innovative, tailored digital solutions that will shape the future of cross-border money transfers.”
Reacting to customer needs
MoneyGram’s report also highlights a growing reliance on digital technology with 49 per cent of respondents now using a money transfer app to send funds across borders. However, the desire for flexibility remains strong with over 40 per cent of respondents still using in-person bank or money transfer physical locations to send money abroad.
Methods of receiving money transfers closely align with the sending methods reported, highlighting the ongoing need for multiple receiving options. Remittance senders most frequently reported their receiver accepting funds directly into a bank account (44 per cent), in an app or digital wallet (38 per cent) and at a retail/walk-in location (38 per cent).
Consumers are seeking apps that offer broader personal finance capabilities, with popular features including the ability to use as a wallet or e-wallet when shopping in stores or online (50 per cent), paying bills (36 per cent) and paying rent (29 per cent).
“Through direct conversations and insightful reports like this one, we’ve learned that today’s consumers are increasingly seeking a financial partner that can seamlessly address both immediate and long-term needs,” explained Anna Greenwald, chief operating officer at MoneyGram. “With this in mind, we’re excited to be actively developing products and services that deliver an exceptional, streamlined experience – and we can’t wait to share more.”
The report finally highlights the transformative potential of web3 services in shaping the future of the remittance industry and beyond. By generation, 79 per cent of Gen Z adults, 81 per cent of Millennials, 67 per cent of Gen X and 57 per cent of Baby Boomers reported seeing cryptocurrency, blockchain, stablecoins and digital wallets as the future of personal finance.
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