Accelerating Digital Remittance with WhatsApp
The global remittance industry presents a massive opportunity, but digital channels are still underutilized. Discover how WhatsApp can overcome adoption barriers and transform the way people send and receive money across borders.
Market Opportunity
The global remittance industry is expected to reach a market size of $930.44 billion by 2026, while the digital remittance market, which is currently experiencing rapid growth, is projected to hit $33.9 billion.
With such a huge disparity, digital remittance is far from reaching its potential. With the availability of new technologies, changing regulatory frameworks, and rising customer demands due to COVID, the sector should have seen much higher growth.
While the cost of digital remittance is less than half of traditional remittance, what's holding the widespread adoption of digital channels in consumer digital remittance?
Top 5 Barriers to Digital Remittance Adoption
1. Access Barrier
The majority of remittance business in the major hubs of Europe, Asia, and the Middle East has been branch-based with few mobile app-based remittance options. A familiar channel like WhatsApp empowered with end-to-end remittance capability has the potential to make digital remittance cost-effective and widely accessible.
2. Language Barrier
A huge chunk of remittance business customers being migrant workers, a multilingual service offering can significantly drive digital adoption. An NLP-based WhatsApp remittance bot can help customers break the language barrier to adopt digital channels.
3. Information Barrier
Usability is one of the key problems associated with complex digital processes for non-digital native users. Gradual information dissemination over social media channels with real-life use cases and videos can help convert the fence-sitters faster.
4. Cultural Barrier
Lift and shift of archaic processes has plagued digital remittance adoption. Design thinking and goal-based process orientation in CX initiatives will go a long way in the cultural shift.
5. Technology Barrier
Legacy technology debt and integration complexity can be huge barriers to rolling out innovative digital solutions. This is where a robust front and middle office solution with Artificial intelligence can help cover the gap.
According to a recent World Bank report, more than 77% of the total remittances are being sent to low and middle-income countries. Offering remittance services on a globally popular channel like WhatsApp provides a much cheaper alternative to cash transfers and physical cash exchanges.
Benefits of Using WhatsApp for Remittance
Lower Operational Cost with Branchless Remittances
Reduce dependency on agents and large branch networks. Offer friction-free digital remittance on WhatsApp and enable customers to send and receive money with just a mobile number.
Privately Owned WhatsApp Wallet for Unbanked Customers
Facilitate inward and outward digital remittance for customers without local bank accounts by leveraging privately owned WhatsApp wallets. Acquire new customers with simple eKYC based instant wallet activation and provide unbanked remitters with stored value option for regular transactions.
Real-Time Remittance Tracking
Offer instant updates on different stages of the transactions. Pair remittance status tracking with the transparency of charges, FX information, and automated FAQs to enhance customer service.
Ensure Compliance with Digital KYC
Authenticate sender and receiver using eKYC for a true end to end visibility on all transactions.
Enhance CX with Personalized Recommendations
Deliver persona-based recommendations, proactively send out reminders based on remitter patterns, and offer competitive FX rates to build long-term relationships.
Transform Your Remittance Business
Launch WhatsApp-based digital remittance and tap into the $930 billion market opportunity.