South Africa Domestic and International Remittance Market Outlook to 2023
By Channels Used (Banking Channels, Retailers, ADLAs & MTOs and Others), Remittance Corridors (Inbound-Outbound and Rural-Urban)
Region:Africa
Product Code:KR776
April 2019
170
About the Report
The report is useful for existing remittance companies, potential entrants, investors and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.
South Africa International Remittance Market
By Channel: International remittance market was led by banks and MTOs & ADLAs showcasing a CAGR close to -7% and 10% respectively during 2013-2018. ADLAs penetrated the market in 2015 and have been rising ever since. Retailers experienced a CAGR close to -5% in terms of value while the other players including post offices and hawalas experienced a single digit negative CAGR during 2013-2018 losing their share to other more organized players.
By Corridors: Inbound remittance flow corridors are dominated by United Kingdom followed by New Zealand, Australia and Angola respectively. Other countries namely, Canada, United States and Botswana witnessed exhibiting small share close to 15%. Owing to its proximity and availability of numerous job opportunities, United Kingdom has been the market leader magnetized by majority of emigrants. Outbound flow corridors, on the other hand, are dominated by Zimbabwe followed by Lesotho and Mozambique respectively. The outbound corridors consist of the SADC countries bordering South Africa wherein foreigners tend to move to a more established country with more stable Economy.
Competition Stage and Positioning: The international market is moderately concentrated with majority of the market being captured by MTOs & ADLAs and banks in 2018. There are 4 major banks namely ABSA Bank, Capitec Bank, Standard Bank and Bidvest Bank which have been active in the space. 2 major MTOs include Western Union and MoneyGram while major 4 ADLAs include Hello Paisa, Mama Money, Mukuru and Exchange4Free. Major 4 retailers include Shoprite, PEP Stores, Pick n Pay and SPAR. Major competing parameters include fees charged, time taken for the transaction, services offered, reach of the service providers, trust value attached, technological advancements, promotional offers and transparency in costs. The market has become highly competitive in terms of the fee charged after the penetration of the ADLAs offering low fees to the customer’s thereby increasing competition.
Future Projections: The market is expected to showcase a CAGR close to 6% and -4% by value and volume of transactions during 2018-2023. In terms of average transaction size the market is expected to register a CAGR close to 3% during the same.
South Africa Domestic Remittance Market
By Channel: Domestic remittance market was led by banks with highest market share showcasing a CAGR close to 15% during 2016-2018. Retailers followed by Mobile wallet companies acquired the second and third highest share in the base year. MTOs witnessed strong growth during 2013-2018 by value of transactions. Other players including post offices and hawalas experienced a decline in popularity with the coming up of other organized gateways.
By Corridors: Highest amount of money has been remitted between urban to rural in 2018. This has been followed by Urban to urban channel with Rural to Urban having a minor share.
Competition Stage and Positioning: The domestic market is highly concentrated by number of remittance transactions with majority share being captured by Capitec Bank, First National Bank, ABSA Bank, Bidvest and Mukuru in 2018 in terms of value of transactions.
The market is expected to showcase a CAGR close to 12% and 7% by value and volume of transactions during 2018-2023.
Key Topics Covered in the Report
- Market Ecosystem and Value Chain
- Market Size on the Basis of Transaction Value, 2013–2018
- Market Size on the Basis of Transaction Volume, 2013-2018
- Market Size on the Basis of Average Transaction Size, 2013-2018
- Market Trends, Growth Drivers & Challenges
- Market Segmentation by Channels Used (Value of Transactions)
- Market Segmentation by Corridors (Value of Transactions)
- Market Segmentation by Income Level (Value of Transactions)
- Government Regulations
- Migration Scenario
- Strengths and Weaknesses of Major Players
- Company Profiling
- Snapshot on Bill Payment Market
- Future Outlook and Projections
- Growth Opportunities
- Future Market Segmentation
- SWOT Analysis
- Analyst Recommendations
Products
Key Target Audience
- Banks
- Money Transfer Operators
- ADLAs
- M-Wallet Companies
- Hawalas
- Convenience and Retail Stores
- Supermarket Chains
- South Africa Reserve Bank
- Bills and Payments Companies
- Investors & Venture Capital Firms
Time Period Captured in the Report:
- Historical Period- 2013-2018
- Future Forecast - 2019-2023
Companies
Key Segments Covered in South Africa International Remittance Market
By International Inbound Remittance Flow Corridor (Value of Transactions)
By Channels used (Value of Transactions)
- Banking channels
- ADLAs & MTOs
- Retailers
- Others
- United Kingdom
- New Zealand
- Australia
- Angola
- Others
By International Outbound Remittance Flow Corridor (Value of Transactions)
- Zimbabwe
- Lesotho
- Mozambique:
- Others
- By Work Profile (Value of Transactions)
Key Segments Covered in South Africa Domestic Remittance Market
- By Channels used (Value of Transactions)
- Banking channels,
- ADLAs & MTOs
- Retailers
- Others
By Domestic Remittance Flow Corridor (Value of Transactions)
- Urban to Rural
- Urban to Urban
- Rural to Urban
- By Work Profile (Value of Transactions)
Table of Contents
1. Executive Summary
1.1. South Africa Domestic and International Remittance Market Size, 2013-2018
1.2. South Africa Domestic and International Remittance Market Segmentation by Channels, by flow corridors and occupational structure
1.3. South Africa Domestic and International Remittance Competition Analysis (Nature of market, number of players and competition parameters)
1.4. South Africa Domestic and International Future Market Analysis and Projections along with market segmentations
2. Research Methodology
2.1. Market Definitions
2.2. Abbreviations Used
2.3. Market Size and Modeling
Market Sizing Approach – Doemstic and International Market
Market Sizing Limitations
Variables (Dependent and Independent) Used for regression analysis
Multi Factor Based Sensitivity Model
Regression Matrix
Final Conclusion
3. South Africa Remittance Market Overview (Market stage, player composition, over the year’s developments, remittance requirements, customer type & others)
3.1. Domestic Remittance Market
3.2. International Remittance Market
3.3. Migration Patterns
4. South Africa Remittance Market Evolution-Over the years changes in Demand & Supply Side of the market
4.1. Traditional Means For Money Transfers
4.2. New Technologies in Remittances
4.3. Recent Developments
5. South Africa Remittance Ecosystem-Entity types, name of players, market positioning strategies and number, 2018
6. Value Chain Analysis (Entities Inter-relationship, Commission Charged and Working Process Flow chart)
7. Operating Models (Business Operation including compliance requirements, types of customers served, general operations)
7.1. Authorized Dealers with Limited Authority (ADLA)
7.2. Money Transfer Operator (MTO)
7.3. Banks
7.4. Retailers
8. South Africa International Remittance Market, 2013-2023E
8.1. Remittance Transaction Value, Average Transaction Size and Volume of Transaction, 2013-2018
Inbound and Outbound Remittance Transaction Value, Volume and Average Transaction Size, 2013-2018
Market Growth Drivers & Challenges
8.2. South Africa International Remittance Market Segmentation (By Transaction Value), 2013-2018
By Banking channels, ADLAs & MTOs, Retailers and Others
By Outbound Corridors (Zimbabwe, Lesotho, Mozambique, Others)
Inbound Corridors (United Kingdom, New Zealand, Australia, Others)
Working Profile
8.3. Future Market Analysis-Remittance Transaction Value, Average Transaction Size and Volume of Transaction, 2019E-2023E
Inbound and Outbound Remittance Transaction Value, Volume and Average Transaction Size, 2019E-2023E
9. South Africa Domestic Remittance Market, 2013-2023E
9.1. Remittance Transaction Value, Average Transaction Size, Volume of Transaction, Commission Charged and Income Earned, 2013-2018
9.2. Market Growth Drivers & Challenges
9.3. South Africa Domestic Remittance Market Segmentation (By Transaction Value), 2013-2018
By Banking channels, ADLAs & MTOs, Retailers and Others
By Corridors (Urban to Rural, Urban to Urban, Rural to Urban)
Working Profile
9.4. South Africa Domestic Remittance Future Outlook, 2019E-2023E
Remittance Transaction Value, Average Transaction Size, Volume of Transaction, Commission Charged and Income Earned, 2019E-2023E
Future Macroeconomic Factors Affecting Market Size
9.5. Future Market Segmentation by Value of Transactions, 2023E
By Banking channels, ADLAs & MTOs, Retailers and Others
By Corridors (Urban to Rural, Urban to Urban, Rural to Urban)
Working Profile
10. Government Regulations
10.1. Role & Authority of South Africa Reserve Bank
10.2. Exchange Control
Reporting System
Authorized Dealers
Authorized Dealers With Limited Authority (ADLA)
Duties and Responsibilities of Authorized Dealers and AUthorised Dealers with Limited Authority
Income Transfers
Personal transfers by foreign nationals and immigrants
Operational Conditions Applicable to Conducting the Business of an Authorised Dealer in Foreign Exchange with Limited Authority
10.3. Anti Money Laundering (AML)
Customer Due Diligence (CDD)
Monitoring Requirements
Intermediaries And Correspondent Banking
10.4. Immigration Regulation
10.5. Issues in the Process of Documentation
11. Snapshot on South Africa Bill Payment Market
11.1. Market Ecosystem-Entity types and name of players, 2018
11.2. Market Overview-Growth Drivers and Market Challenges
11.3. Key Market statistics- Market Settlement Values, Market Split of Settlement Values, Channels for Retail Transactions), 2013-2017
11.4. Government Regulations (PASA & other Regulatory Acts)
11.5. Major Players (PayGate, PayPal, Masterpass, PayVault, My Gate, PayFast)
11.6. Analyst Recommendations for players Bill Payment Market
12. Customer Profiling (Decision Making Parameters, Impact on customers, Customer Description Flow Chart, Age Group, Technological Skeptic, Working Occupations, Channels Preferred and Decision Sensitivity)
13. Competitive Landscape of Major Players in South Africa Remittance Market
13.1. Competition Scenario (Nature, Major Players, Competition Parameters, Product Innovations & Market Positioning)
13.2. Market Share of Major Players by Transaction Value
International Remittance, 2018
Domestic Remittance, 2018
13.3. Strengths and Weaknesses of Major Players (ABSA Bank, Standard Bank, Capitec Bank, Bidvest Bank, Hello Paisa, Mama Money, Mukuru, Exchange4Free, Shoprite, PEP Stores, Pick n Pay, SPAR, Western Union and MoneyGram)
14. Industry SWOT Analysis
15. Company Profiling Of Major Players (Company Overview, Company Management, Remittance Services Offered, Business
Strategy, Modes of Remittance
Fund Transfer Charges and Limits, Key Performance Indicators-Fee and Commission Income, Fee and Commission Expense, Net Fee and Commission Income, Regional Outreach & Others)
Banks
15.1. ABSA Bank Limited
15.2. Standard Bank
15.3. Bidvest Bank (BVBL)
15.4. Capitec Bank
Retailers
15.5. Shoprite
15.6. PEP Stores
15.7. Pick n Pay
15.8. SPAR
Money Transfer operators (MTOs)
15.9. Western Union
15.10. Money Gram
Authorized Dealers With Limited Autority (ADLA)
15.11. Hello Paisa
15.12. Mama Money
15.13. Mukuru
15.14. Exchange4Free
16. Industry Analyst Recommendations
Disclaimer
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