A recent survey conducted by MoneyGram in partnership with independent research firm 8 Acre Perspective has revealed key trends and future growth drivers in the global payments industry. The survey focused on American consumers who had sent money abroad in the past year.
Despite concerns over inflation and an impending recession, over 75% of respondents expect to send the same or even higher amounts of money in 2023 compared to 2022. And in the event of an economic downturn, 42% said they would likely increase the amount they send to help alleviate financial pressure on family and friends abroad.
The survey also highlighted that consumers continue to send money abroad to support the ongoing needs of loved ones back home. Ongoing support was cited as the largest reason for sending funds abroad, followed by supporting family and friends in unexpected situations. Additionally, about half of the respondents said the needs of their loved ones abroad have increased compared to a year ago.
Digital money transfer platforms continue to be popular among consumers, with 85% of respondents primarily using digital methods to send money abroad. Furthermore, nearly half of them said they increased their digital money transfer volume in 2022. Millennials in particular showed a strong preference for using apps as their primary way to send money abroad.
Interestingly, the survey revealed that the majority of respondents would be interested in a digital app that addresses a broader range of financial needs to complement their core remittance offering. Millennials, in particular, showed the most interest in the expansion of app capabilities.
Looking ahead, Millennials are expected to play a key role in the future growth of the global remittance market. As they age into the primary-earner role in their families, Millennials are relying more heavily on international money transfers. In fact, they are the most likely generation to increase their sends abroad in 2023. This is not only due to their own financial standing but also the increased needs of their loved ones.
The survey also revealed strong interest in blockchain technology within the global payments industry. Among respondents who were familiar with blockchain technology, an overwhelming 91% said they would be interested in seeing it leveraged in the money transfer space.
MoneyGram’s Chief Executive Officer, Alex Holmes, commented on the survey, stating that it further solidifies the idea that consumers who send money abroad are resilient and dependable, even in times of economic turmoil.
In conclusion, the survey sheds light on important trends in the global payments industry and emphasizes the need for innovative and intuitive financial platforms to meet the increasing demands of consumers. With Millennials at the forefront, the industry must stay ahead of the technological curve to empower individuals to do more with their money transfers.