The report titled “South Africa Domestic and International Remittance Market Outlook to 2023
- By Channels Used (Banking Channels, Retailers, ADLAs & MTOs and Others),
Remittance Corridors (Inbound-Outbound and Rural-Urban)” provides a comprehensive analysis
of South Africa’s Remittance Market including market evolution, overview,
genesis, market size and market segmentation. Extensive focus has been placed
in quantifying the transaction value and volume over the period, 2013-2023. The
report covers aspects such as market segmentation (by channels used, by
corridors and by income level) and an extensive snapshot on the bill payment
market in South Africa. The report has covered the international and domestic
space exclusively focusing on over the year’s computation & interpretation
of change in volume, value and average ticket size of transactions in the
country. Income earned & change in commission charged has been scrutinized
well followed by explicit analyst explanations. Competitive landscape of major
players including ABSA Bank, Capitec Bank, Bidvest Bank, Standard Bank, Western
Union, MoneyGram, Hello Paisa, Mama Money, Mukuru, Shoprite, SPAR, PEP Stores
and Pick n Pay have been covered including company overview, major business
strategies, USP, distribution network, remittance services offered, financials
and various other parameters. The report also covers future industry analysis
(by value, volume and average transaction size), future market segmentation,
SWOT analysis, growth opportunities, upcoming trends & analyst
recommendations.
The report is useful
for existing remittance companies, potential entrants, investors and other
stakeholders to align their market centric strategies according to ongoing and
expected trends in the future.
Market Overview (Current and Future): South Africa domestic and
international remittance market are highly concentrated and in the growth
stage. The market includes both formal and informal payment service providers
including banks, money transfer operators, ADLAs, retailers and mobile wallets.
Prominent business strategies adopted by major players to position themselves
in the market include forming an extensive network & improved reach, new
services launched & service innovation and better pricing &
handy/transparent operations offered. The market has been fuelled by increased
migration, rising government support for new competitors, declining fee charges
and increased awareness towards digitalized remittance services.
South Africa International Remittance Market
Market Size: South Africa international remittance market recorded a CAGR
of close to -1% in terms of average transaction size and close to -2% in terms
of volume & value of transaction during 2013-2018. The market showcased a
slow & negative growth owing to low purchasing power & high cost
associated with remitting money in both inbound & outbound space. Outbound
remittance has captured close to half of the market size by value in 2018 declining
consistently since 2013.
By Channel: International remittance market was led by banks and MTOs
& ADLAs showcasing a robust CAGR close to 3% and 8% respectively during
2013-2018. ADLAs penetrated the market in 2015 and have been rising ever
since. Retailers experienced a CAGR
close to -1% in terms of value while the other players including post offices
and hawalas experienced a double digit negative CAGR during 2013-2018 losing
their share to other more organized players.
By Corridors: Inbound remittance flow corridors are dominated by United
Kingdom followed by New Zealand, Australia and Angola respectively. Other
countries namely, Canada, United States and Botswana witnessed exhibiting small
share close to 15%. Owing to its proximity and availability of numerous job
opportunities, United Kingdom has been the market leader magnetized by majority
of emigrants. Outbound flow corridors, on the other hand, are dominated by
Zimbabwe followed by Lesotho and Mozambique respectively. The outbound
corridors consist of the SADC countries bordering South Africa wherein
foreigners tend to move to a more established country with more stable Economy.
Competition Stage and Positioning: The international market is
concentrated with majority of the market being captured by MTOs & ADLAs in
2018. There are 4 major banks namely ABSA Bank, Capitec Bank, Standard Bank and
Bidvest Bank which have been active in the space. 2 major MTOs include Western
Union and MoneyGram while major 4 ADLAs include Hello Paisa, Mama Money, Mukuru
and Exchange4Free. Major 4 retailers include Shoprite, PEP Stores, Pick n Pay
and SPAR. Major competing parameters
include fees charged, time taken for the transaction, services offered, reach
of the service providers, trust value attached, technological advancements,
promotional offers and transparency in costs. The market has become highly
competitive in terms of the fee charged after the penetration of the ADLAs
offering low fees to the customer’s thereby increasing competition.
Future Projections:
The market is expected to showcase a CAGR close to 6% and -4% by value and
volume of transactions during 2018-2023. In terms of average transaction size
the market is expected to register a CAGR close to 3% during the same.
South Africa Domestic Remittance Market
Market Size: South Africa domestic remittance market recorded a CAGR of
close to 3% in terms of average transaction size and close to 6% & 3% in
terms of transaction value and volume during 2013-2018 respectively. The market
showcased a positive growth with the entry of ADLAs & with the rise in
government initiatives to push the market forward. Players witnessed rising
profits owing to increase in the commission charged year-on-year averaging a
CAGR of close to 15% during the review period. This thus, accelerated the
income earned by the players at a CAGR of more than 20% during the review
period.
By Channel: Domestic remittance market was led by banks with highest
market share showcasing a CAGR close to 1% during 2013-2018. Retailers followed
by Mobile wallet companies acquired the second and third highest share in the
base year. MTOs witnessed strong growth during 2013-2018 by value of
transactions. Other players including post offices and hawalas experienced a
decline in popularity with the coming up of other organized gateways.
By Corridors: Highest amount of money has been remitted between urban to
rural in 2018. This has been followed by Urban to urban channel with Rural to Urban
having a minor share.
Competition Stage and Positioning: The domestic market is highly
concentrated with majority share being captured by Capitec Bank, First National
Bank, ABSA Bank, Bidvest and Mukuru in 2018 in terms of value of transactions. The
market is expected to showcase a CAGR close to 12% and -7% by value and volume
of transactions during 2018-2023.
Key Segments Covered in South Africa International Remittance
Market
By Channels used (Value of Transactions)
Banking channels
ADLAs & MTOs
Retailers
Others
By International Inbound Remittance Flow Corridor (Value of
Transactions)
United Kingdom
New Zealand
Australia
Angola
Others
By International Outbound Remittance Flow Corridor (Value of
Transactions)
Zimbabwe
Lesotho
Mozambique
Others
By Work Profile (Value
of Transactions)
Key Segments Covered in South Africa Domestic Remittance
Market
By Channels used
(Value of Transactions)
Banking channels
ADLAs & MTOs
Retailers
Others
By Domestic Remittance Flow Corridor (Value of Transactions)
Urban to Rural
Urban to Urban
Rural to Urban
By Work Profile (Value
of Transactions)
Key Target Audience
Banks
Money Transfer
Operators
ADLAs
M-Wallet Companies
Hawalas
Convenience and Retail
Stores
Supermarket Chains
South Africa Reserve
Bank
Bills and Payments
Companies
Investors &
Venture Capital Firms
Time Period Captured in the Report:-
2013-2018 – Historical Period
2019-2023 – Future Forecast
Companies Covered: ABSA Bank Limited, Albaraka Bank Limited, Bidvest Bank
Limited, BNP Paribas SA – South Africa Branch, Capitec Bank Limited, China
Construction Bank-Johannesburg Branch, Citibank-South Africa, Deutsche Bank
AG-Johannesburg Branch, FirstRand Bank Limited, Habib Overseas Bank Limited,
HBZ Bank Limited, HSBC Bank PLC–Johannesburg Branch, Investec Bank Limited,
JPMorgan Chase Bank-Johannesburg Branch, Mercantile Bank Limited, Nedbank
Limited, Sasfin Bank Limited, Société Générale, Standard Chartered
Bank–Johannesburg Branch, State Bank of India, The South African Bank of Athens
Limited, The Standard Bank of South Africa Limited, First National Bank, Bank
of Baroda, Bank of India, Bank of China, Bank of Taiwan, Western Union , Money
Gram, Hello Paisa, Mama Money, Mukuru, Exchange4Free, Imali Express (Pty), Ace
Currency Exchange (Pty), Forex World (Pty) Limited, Global Foreign Exchange
(Pty) Limited, Inter Africa Bureau de Change (Pty) Limited, Interchange RSA
(Pty) Limited, Master Currency (Pty) Limited, Sikhona Forex (Pty) Limited,
Tourvest Financial Services (Pty) Limited, American Express Foreign Exchange
Services, Tower Bureau de Change (Pty) Limited, Travelex Africa Foreign
Exchange (Pty) Limited, Southeast Exchange Company (South Africa), Terra
Payment Services South Africa (RF) (Pty), WorldRemit South Africa (Pty)
Limited, Shoprite, Pep Stores, Pick n Pay, Checkers, Spar, Ackermans and
Boxers.
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