A $500 Billion Opportunity in Finance: The Growing Demand for Remittance Services in the US and Africa

Remittances have now become a vital economic lifeline for millions of families across the world. For example, as the African diaspora in the United States and other parts of the world continues to grow, so does the demand for efficient, affordable, and reliable remittance services.

This demand is driving a remarkable expansion in the remittance market, which is projected to reach a staggering $500 billion by 2025.

Let’s look into  the rapidly expanding Market:

In 2022, remittances to Africa approached $100 billion, with around $20 billion flowing within the continent itself, according to the United Nations.

This figure is expected to multiply rapidly due to several converging factors: increasing migration, rising smartphone and internet penetration, and growing demand for fast, secure cross-border payment solutions. Analysts project a compound annual growth rate (CAGR) of approximately 10-12% in the coming years, which could see the market more than double by 2035.

What you should know about the Key Remittance Corridors and Countries

Among African nations, Egypt, Nigeria, and Morocco stand out as the largest recipients of remittance inflows. Egypt, with Africa’s largest diaspora, received $22.7 billion in 2024, benefiting from strong ties with the Gulf region, Europe, and North America.

Nigeria, Africa’s most populous country, followed closely with $19.8 billion, largely sent from its diaspora in the US and UK. Morocco rounds out the top three, receiving $12 billion primarily from Europe.

This dynamic underscores the critical role that the US-based diaspora plays in sustaining economic ties and supporting families back home. As these flows grow, so does the need for seamless remittance infrastructure that can handle increasing volumes while reducing costs.

The Challenges and The Solution

Despite the market’s growth, the cost of sending money to Africa remains a significant barrier. Transfer fees in some parts of Sub-Saharan Africa can reach as high as 20%, far exceeding the UN Sustainable Development Goal target of less than 3% by 2030. High fees reduce the amount of money that reaches recipients, limiting the positive economic impact of remittances.

Therefore…

Mobile money startups have emerged as transformative tools in addressing these challenges. By enabling interoperability across networks and improving financial literacy, mobile money is helping to lower costs and increase access to remittance services.

For businesses and financial institutions in the US and Africa, this booming remittance market represents a massive opportunity. Providing remittance services that are compliant, cost-effective, and technologically advanced (where Sendsprint makes it easy) is key to capturing a share of this expanding market.

How Sendsprint is making it easier for remittance businesses to exist, survive and thrive.

Sendsprint is uniquely positioned to empower startups aiming to fill the gap in remittance services by simplifying the complex and often time-consuming process of obtaining money transmitter licenses in the US.

Through Sendsprint’s Remittance-as-a-Service (RaaS) platform, Sendsprint provides a fully compliant, US-based payment infrastructure and expert regulatory support that allows businesses to launch their remittance offerings quickly and confidently without the usual regulatory delays.

By partnering with Sendsprint, startups gain instant access to a robust technology stack, built-in anti-fraud measures, and multi-channel payout options tailored for African markets—all while leveraging Sendsprint’s licensed entity status.

This means businesses can focus on growth and customer experience, trusting Sendsprint to handle licensing, compliance, and payment processing.

Are you among these startups looking to fill the gaps in the US remittance market? Get started seamlessly with Sendsprint today, as your trusted partner to have a license to operate HERE