The COVID-19 pandemic has had a significant impact on the remittances industry worldwide. According to a report by the World Bank, global remittances are projected to decline by 20% to 30% in 2020 due to the economic fallout from the pandemic. This is a significant blow to the industry, which had been growing steadily in recent years.
One of the main reasons for the decline in remittances is the loss of jobs and income for many people around the world. With economies in recession and businesses shutting down, many people are no longer able to send money to their families in other countries. Additionally, border closures and travel restrictions have made it more difficult for people to send money through traditional channels.
However, the pandemic has also led to an increase in the use of digital remittances services. With more people staying at home and avoiding physical contact, digital platforms have become a convenient and safe way to send money. According to a report by Boston Consulting Group, the share of digital remittances is expected to increase from 20% to 30% in 2020.
Startups in the remittances industry have also been affected by the pandemic. Some have had to lay off employees or cut costs, while others have seen an increase in demand for their services.
Overall, the COVID-19 pandemic has brought significant challenges to the remittances industry, but it has also accelerated the adoption of digital technologies and highlighted the importance of remittances for people around the world.
#remittances #covid19impact #digitalremittances