Technology is the single unifying backbone behind startups, telcos and banks who successfully move into the remittance space. As outdated monopolies begin to crumble, the money transfer industry is only growing and making room for others.

As the World Bank estimates global money transfers to rise to $586 billion this year and $636 billion in 2017, startups are set to disrupt the booming remittance industry. WorldRemit, an online money transfer startup founded a mere 5 years ago, is valued north of $500 million surpassing household industry names. The digital revolution is enabling newcomers to the industry to make leaps with their innovative and fresh approach. Rather than having to go to brick and mortar branches to send money, remittance companies that offer their users the ability to create transactions online are seeing the biggest growth.

Across Africa, telcos are making great strides in remittance too and are beginning to put an end to their exclusive agreements with the likes of Western Union. Established telcos have the advantage of using their existing community networks to allow people to send and receive money using devices they already own. With rumours ablaze of Western Union in talks to acquire MoneyGram, traditional players are likely to consolidate their market share and pay special emphasis on using technology to access more users.

Unbanked people, with little or no access to financial institutions, are now able to use mobile wallets (set up by telcos) to send and receive money electronically. Central banks throughout Africa are also more readily awarding money service licenses to non-financial entities. We’ve taken the initiative to integrate the RemitONE platform with telcos and mobile wallet providers across new markets, letting us help old and new money transfer operators stay ahead of innovation and fuel access to remittances for those who need it most.

Banks in receiving markets – traditionally bound to only one or two money transfer operators – now actively seek tie-ups with remittance businesses in sending-countries. At RemitONE, we’re continuously forming partnerships with banks in Pakistan, India, The Philippines and other growing inbound money transfer regions to bolster the reach of growth-focussed money transfer operators.

Since 1960, the total number of global migrants has increased by 55%. As the number of overseas workers sending money home soars, an increase in the number of money transfer operators tapping into receiving markets only promotes healthier competition and greater financial access: important goals for an industry that lags behind technology. The least developed countries in the world are to witness significant growth over the next 5 years, with remittances driving progress and local enterprise far more than foreign direct investment.

While online payments and global hubs are disrupting the money transfer industry, we are far from the end result of remittance innovation. Cryptocurrency has not yet become the backbone of cross-border payments, partly due to the restraint of regulators’ compliance and partly because of a lack of mainstream public awareness. The next few years, however, are likely to bring about a transformation in remittances with low cost, instant transfers underpinned by digital currencies such as bitcoin. Ripple has already released a payment protocol for businesses to facilitate global transfers using flat currency, cryptocurrency and commodities. Other technology hubs such as HomeSend and TransferTo are gaining traction, signifying that money transfer businesses are becoming more open to using competitors’ networks to expand.

Technology is the single unifying backbone behind startups, telcos and banks who successfully move into the remittance space. As outdated monopolies begin to crumble, the money transfer industry is only growing and making room for others.