GURUGRAM, India, February 12, 2018
GURUGRAM, India, February 12, 2018 /PRNewswire/ --
The global remittance industry has increased at a nominal CAGR during 2011-2016, reaching USD 620 billion in 2016. Some of the major migrant destination countries in the world include the United States, Saudi Arabia, Germany, the Russian Federation, the UAE, the UK, France, Canada, Spain and Australia. Remittance has acted as a critical source of foreign funding for developing countries.
The Russian remittance industry is dominated by the outflow of remittances due to higher concentration of expatriate in the country. During the period 2011-2016, the market for remittance has increased on account of increasing migrants to Russia, increase in internet penetration and increase in the use of digital methods for wire transfers including account to account, account to card and card to card transfers. The growing opportunity in the Russian remittance industry has attracted mobile money operators, banks and MTOs to enter the remittance industry in Russia.
Russian International remittance market is dominated by the outbound remittance to other countries from Russia. In the year 2016, the outbound remittance was more than double the inbound remittances. The outbound remittance volume was higher than the volume of remittance received from other countries even though the economic indicators and market in Russia were not performing well.
The dominance of outbound remittance is also due to the increase in population migrating to Russia for better job opportunities, high salary and better lifestyle, contributing to the rising size of remittance industry in the country. The banks have dominated the market in terms of total transaction volume of remittance sent to other countries
Inflow of remittance in the country is less as compared to outflow because of low migration of Russians in other countries. The major countries for the inflow of remittance fund to Russia are the US, Switzerland, UK, Ukraine, Uzbekistan and others.
Major players in the Russia remittance and bill payments market include exchange houses, banks and the MTOs offering e-wallet services exclusively for bill payments. Russian remittance market is fragmented with the presence of small, medium and large companies. The large players such as MoneyGram, Western Union and others are dominating the industry in terms of transaction volume. The Russian remittance industry is traditionally dominated by companies including Korona Pay, Contact, Western Union and MoneyGram. These companies also face competition from other companies such as PayPal that facilitates cross border transfers via mobile and online, making their service more cost effective, since they don't have to pay a commission to agents transferring funds. The money transfer agencies compete on the basis of USP, Transaction Fees, Service offered, Mode of Transfer and other parameters.
Bill payment services are provided majorly by the exchange houses and there are two major online portals that cater to the needs of bill payments; Yandex and Webmoney.
According to the report by Ken Research titled Russia Remittance and Bill Payments Market by Inbound and Outbound International Remittance, By Mode of Transfer (Cash or Electronic Transfers), By Channel (Bank and Non-Bank) - Outlook to 2021, the surge in the remittance market in Russia has also been supported by the bilateral initiatives taken between the Russian and Ukrainian governments to facilitate remittance, enabling the Russia-Ukraine corridor to be the second largest remittance corridor in the world.
Key Topics Covered in the Report:
For more information on the research report, refer to below link:
Related Reports by Ken Research
Nigeria Remittance and Bill Payments Market Outlook by Inbound and Outbound International Remittance, By Mode of Transfer (Cash or Electronic Transfers), By Channel (Bank and Non-Bank) - Outlook to 2022
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