As customers are becoming more comfortable using mobile devices, the remittance industry is being digitally remastered. Competition from new entrants and margin pressures from a growing global consensus on lowering remittance transaction fees are the main causes for the shift to digital. Digital financial services have soared internationally, leading to important developments in the transformation towards digital remittance. With digital wallets adding an additional touchpoint to retail prepay recharge, customer convenience leads to an increase daily transactions. Remittance companies have also introduced mobile apps to their retail channels to keep up with the on-demand consumption environment consumers now live in. These initiatives aim to provide a wrapper service that improves the user interface of existing service channel architecture. Meanwhile, the underlying instrument remains a bank instrument, with recipients traveling to a bank branch to pick-up the cash at the destination leg.

While there is no single definitive way to adopt digital remittance for a company, a progressive approach has been the “blueprint” to help draw in customers, boost revenue and deepen engagement with consumers. Building “digital rails” for international transfers aids in international money transaction efficiency. By using a multilateral model that interlinks standalone wallet systems and payment networks for cross-border transactions, companies can take advantage of the multiplier impact and increase presence globally.

The international remittances marketplace is being reinvented to keep up with the digital wave. Mobile wallet service providers need to be capitalizing on the opportunity to ride the digital wave by adopting collaborative models that create a widely available network. Companies can then achieve service differentiation from the strength of their business models and innovative products, surpassing the competition.