How Digital And Cash Have Allowed The Leading Money Transfer Players To Adapt

The pandemic has been a catalyst for digital growth across the money transfer sector. Yet, it would be wrong to assume that this has caused the end of cash in international remittance. So, cash and the network of cash payout locations remain critical. It has proved to be a key enabler supporting the growth of the digital divisions and businesses across the sector.

A transaction initiated digitally and paid out in cash counts as a digital transaction for the leading incumbents. Therefore it means that the capability of cash and investments in digital has helped to adapt the business models. Simultaneously, the Fintechs are growing from time to time. The importance of both digital platforms and cash payout networks dealt with the biggest changes since the rise of smartphones.

Digital has stolen the headlines

Over the past five years, many companies are managing to grow their digital businesses while their overall businesses slowed steadily. However, the pandemic has triggered a rapid shift to digital. Therefore it proved to be a blessing because of its impact on many industries. So the importance of fintech was acknowledged during tough times. For the Fintechs, digitally paid-in and digitally paid-out transactions categorize the majority of their transactions. 

Although many customers are moving towards the digital world, cash is still playing a pivotal role, especially for specific target customers and corridors. According to some researchers, a winning strategy is that digital and physical channels integrate to give customers a wider choice of payment networks within a single provider.

The value of a cash payout network

Over two-thirds of the remittance market still believes to be picked up in cash. Cash is important on both the pay-in (sender) and payout (recipient) side. According to a few economists, cash still has a bright future because, on the payout side, many people still want to receive their money in cash. However, cash-to-account capabilities or digital-to-cash capabilities would be a bit of a mistake in long-term growth and cash flow opportunity. The safe option is to leverage both cash and digital.

A further difference comes in the type of customer. The short-term migrant worker communities present in the Middle East make self-transactions (to a bank account owned by the sender in another country). In other corridors with longer-term migrant communities such as the US sending to Mexico or the Philippines, the family members are on the receiving end.

Mobile wallets are one of the fastest-growing market segments. It is an interesting exception because it is not controlled by leading money transfer players. Africa and parts of Asia have been leading the drive of mobile wallet acceptance.


Each of the leading incumbents has invested heavily into their digital businesses. The pandemic has been the catalyst for the jump in digital penetration rates. The shift away from cash had been accruing in many sectors. Few reporters agree that there has been a gradual shift, and it has been much more exponential since COVID hit. 

Even though the world is evolving with the new trend of “new normal”, some people tend to stick with the traditional payment method. So some people prefer receiving cash instead of digital money. With ATL Money Transfer it is possible because it offers cash payout services in 60 countries. You can send and receive money anywhere around the world. We are an Authorized and Regulated payment institution, handling thousands of safe transactions a month. To know more about us, click on this link

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