Digital apps now most preferred remittance channel

Banks, fintechs, remitters told to take note as it will shape customer expectations.

Digital apps have become the most preferred channel to send and receive remittances in the Asia Pacific region, according to findings by Visa.

Usage rates are highest in India, where 74% and 76% prefer to send and receive their remittances through digital apps. This is followed by the Philippines (74%/66%), and Singapore (70%/75%).

Japan is also reportedly seeing steady growth, with digital app usage rising to 58% for sending remittances, and 56% for receiving remittances.

This shift is an important one for banks, remitters and fintechs to note as it will shape how they engage and serve evolving consumer expectations, according to Chavi Jafa, senior vice president, head of commercial and money movement solutions APAC, Visa.

“The clear shift to app-based remittances reflects the region’s demographics, the growing prominence of digital payment modes, as well as user preferences for easy, safe and quick ways to send and receive money,” Jafa said.

Digital apps are viewed as the most secure way to send and receive remittances in APAC, with top responses from India, Australia, and Singapore,  Visa found.

Respondents from the Philippines, Singapore, Japan, and Australia noted most the ease of use to send and receive digital remittances.