MoneyGram Unveils 2024 State of Remittances Report: The Consumer Perspective on Digital Trends and Global Pressures
DALLAS, Sept. 12, 2024 /PRNewswire/ — MoneyGram International, Inc., a leading global financial technology company that connects the world’s communities, today announced the release of its comprehensive annual report, “2024 State of Remittances – Through the Lens of the Consumer.” The report, based on an extensive survey of over 1,000 U.S. remittance consumers, offers critical insights into the evolving landscape of international money transfers and the increasing reliance on digital solutions to support loved ones abroad.
As global economic challenges persist, including inflation, geopolitical unrest and natural disasters, consumers are turning more than ever to remittances as a vital means of connection and support for their families and friends. The report reveals that a significant majority of U.S. remittance consumers (89%) feel closer to their loved ones when they provide financial support, underscoring the emotional importance of these transactions.
Top Themes Shaping the Current and Future State of the Remittance Industry
- Remittances as a Lifeline: The top reasons for sending money abroad include helping with unexpected situations like emergency medical bills (44%), ongoing support for essential needs like food and housing (42%) and aiding those affected by global events (27%).
- Digital Solutions on the Rise: 37% of consumers reported an increase in their use of digital money transfer services in the past year, with digital solutions expected to play a more critical role in the future of personal finance.
- Resilience in the Face of Global Challenges: Consumers reported increasing remittance amounts to help loved ones abroad cope with inflation (62%), geopolitical issues (59%) and the impacts of natural disasters (57%).
- Generational Shifts: The report highlights a growing trend among Gen Z and Millennials utilizing digital wallets and other emerging technologies, reflecting a broader shift toward digital-first financial tools.
“Every international money transfer tells a story of unique individuals coming together in the spirit of care and support,” said Alex Holmes, MoneyGram Chairman and CEO. “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. Our responsibility is to stay deeply attuned to both senders and receivers around the world, ensuring our network and services not only meet but anticipate their most critical needs each and every day.”
More Transfers Are Going Digital, But Consumers Also Want Flexibility
As noted, the report reveals an increasing reliance on digital technology with nearly half of respondents (49%) now reporting the use of a money transfer app to send funds across borders. However, the desire for flexibility remains strong with over 40% 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%), in an app or digital wallet (38%) and at a retail/walk-in location (38%).
Moreover, when a money transfer provider has both digital services and physical locations, remittance senders most frequently say they perceive the provider as being more flexible (39%) and more accessible (39%).
Consumers Seek More Features and Embrace Emerging Technologies
As the remittance industry continues to grow, the report indicates a strong demand for more comprehensive digital wallet features, especially among younger generations. 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%), paying bills (36%) and paying rent (29%).
“We place great value on listening to our customers and truly understanding their unique perspectives. 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,” said Anna Greenwald, MoneyGram Chief Operating Officer. “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.”
Lastly, the report highlights the transformative potential of Web3 services in shaping the future of the remittance industry and beyond. This belief is reflected in the widespread consumer confidence that emerging technologies – such as cryptocurrency, blockchain, stablecoins and digital wallets – are positioned to redefine the landscape of personal finance. By generation, 79% of Gen Z adults, 81% of Millennials, 67% of Gen X and 57% of Baby Boomers reported seeing these technologies as the future of personal finance.
