Development of financial infrastructure, introduction of supportive government policies, change in business model of various remitting companies & increased marketing expenditure have been the key factors driving growth in South Africa remittance market.
South Africa domestic and international remittance Market is highly competitive and concentrated. It includes both formal and informal payment services providers. The market has declined in terms of value and volume of transactions however it has seen a rise in terms of average transaction size for outbound business. The decline can be supported by the high transaction fee involved in the remittance business which serves as a dissidence for customers.
High Emigration Population: Number of South Africans leaving the country showcased a positive last 5 year CAGR of almost 3% owing to the compelling job opportunities and prospects in the developed countries. An increase in the emigrant population is indicative of a prosperous remittance business. Emigrants from South Africa have majorly migrated to the developed economies including United Kingdom, Australia, United States, New Zealand, Canada, Angola Botswana and other SADC countries. Few emigrants migrate to the SADC corridor since these economies are highly lagging as compared to South Africa.
Majority of migrants into South Africa are from Mozambique, Zimbabwe, Lesotho and other SADC countries. The trend observed in inbound migration is the result of increased economical opportunities in South Africa compared to the SADC region.
Customer Analysis: The outbound population consists of an almost equal gender ratio in 2018. The maximum number of emigrants falls in the age bracket of 25-29 years followed by 30-34 year population in 2018. The age group of 70-79 years accounts for the lowest emigrants showcasing a share of less than 1% of the population.
Declining Costs: South Africa continues to remain one of the costliest countries to remit money from across the world. The average cost to remit money for 2017 was around 18% of transaction amount which are representative of a decline from a peak of 2013. The increased competition in the market with escalating market share of ADLAs has largely affected the fee structure across the country. ADLAs charge minimal fees of not more than 5% of the transaction amount, making them a market leader in terms of pricing.
Increased Digitalization: The South African market is adopting digitalization at a rapid pace in all aspects including the remittance market. The smart phone users in South Africa have increased to almost 40% in 2018 from close to 11% in 2013. This increased penetration of technologically advanced mobile phones showcases the adoption of mobile wallets, e-wallets and other electronic modes of remittance services across South Africa. This has driven the market considerably during 2013-2018.
Government Support Policies: South Africa Government has been liberalizing their policies and regulatory frameworks for remittance service providers including all entities. The documentation, fee structure and business compliance guidelines have been improvised by the regulators leading to a higher remittance business. The flexibility being adopted by the government is serving as an incentive for both the service providers as well as the customers availing the services.
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)” suggests that market will grow at a CAGR of close to 6% in terms of transaction value during the year 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.
Keywords:-
South Africa Remittance Market
South Africa Remittance Industry
South Africa Remittance
South Africa Remittance Report
Remittance Services Competition
Remittance Income South Africa
Major Players South Africa Remittance Market
SWOT South Africa Remittance
Remittance Industry South Africa
Major Players South Africa Remittance
Mama Money Remittance South Africa
Mukuru Remittance South Africa
Exchange4Free Remittance South Africa
Shoprite Remittance South Africa
PEP Stores Remittance South Africa
To Know More About This Report Follow This Link:-
Related Reports by Ken Research:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
