This article was first published on Insights – Ripple
More remitters than ever are sending money home to their loved ones. In the Asia-Pacific (APAC) region alone, the World Bank reported a 12% growth in remittance flows in 2018—and roughly 2 billion remittance transactions take place in the region each year. While this rise of global remittances is significant, what is more astounding is the clunky and expensive services that remitters still face every day.
Blockchain technologies offer a way to replace decades old infrastructure and a seamless experience for global payments businesses and their customers—complete with the speed, transparency, reliability and access people have come to expect from services like email.
The Asia-Pacific (APAC) region is seeing significant growth in remittances, yet the high cost of cross border payments leaves remitters with few options. In this series, find out how you can build differentiated value propositions in this market.
Growing Market Demand
The APAC market is ripe for digitalization to dramatically improve the process of sending global payments for consumers. Remittance flows to low- and middle-income countries such as the Philippines and Thailand achieved a record high of $529 billion in 2018 and are expected to reach $550 billion in 2019, becoming their largest source of external financing.
The Philippines specifically is the third largest remittance-receiving country in the world. With more than 10 million Filipinos working abroad, there is a massive inflow of remittances from workers sending their earnings home. Remittance inflows fuel the country’s consumer spending, solidify its foreign currency reserves and promote local investment in a nation that still has a majority rural population.
Conversely, the stronger Australian and Thai economies attract a significant number of migrant workers, who send transfers to their home countries on a routine basis. Australia’s remittance outflows of $7.2 billion totaled 0.5% of the ...
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Insights – Ripple