Prepay Nation, a leading global B2B marketplace specializing in prepaid products, has unveiled its inaugural white paper titled “The Evolution of Cross-Border Transfers.” This comprehensive document underscores a significant upswing in demand for cross-border transfers within the Middle East, particularly emphasizing sophisticated and productized remittances.
Recent statistics indicate that the global digital cross-border transfers market, valued at $148.08 billion in early 2023, is projected to grow at a CAGR of 12.58% to reach $339.87 billion by 2030. This surge is primarily propelled by increased mobile phone usage, online commerce, and the necessity for swift, secure, and convenient money transfer services. Notably, the UAE and Saudi Arabia stand out as major remittance hubs, collectively sending a staggering $39.6 billion and $39.3 billion in 2022, representing approximately 7% of their combined GDP.
The escalating demand for reliable and cost-effective money transfer services in the Middle East stems from the growing expatriate population, notably from India, Pakistan, Bangladesh, Egypt, Nepal, Sri Lanka, and the Philippines, who regularly remit funds to their home countries. With the UAE and Saudi Arabia hosting over 22 million expatriate workers each, these nations serve as primary sources of remittances to Asia and the Middle East.
Furthermore, the report underscores that cross-border transfers extend beyond mere cash transactions, with a rising preference for purpose-driven remittances among expats, especially those without access to traditional banking services. This has spurred the diversification of prepaid digital vouchers, including airtime top-ups, data packages, gift cards, and utility bill payments. Airtime top-ups, in particular, have gained significant traction in the Middle East due to high mobile phone usage, facilitating connectivity with loved ones back home.
Paolo Montessori, CEO of Prepay Nation, commented on this global shift towards digital payments, noting that the Middle East is actively embracing this transition, with projections indicating that 69% of payments in the region will be cashless by 2023. In response to this evolving landscape, Prepay Nation is strategically expanding its offerings to cater to changing consumer preferences, facilitating financial inclusion and stability for billions of customers from emerging economies.
In summary, the demand for productized cross-border transfer services is on the rise, and Prepay Nation is poised to meet this demand by continuously innovating and integrating millions of customers into the formal financial ecosystem through its expanding range of prepaid services.
