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These days, sending money across borders is essential for both global business and personal transactions. Remittance apps like Remitly have transformed how people send money internationally, offering a simple, secure, and cost-effective way to transfer funds. As the demand for fast and reliable transfers grows, remittance app development has become a key focus for startups and businesses alike. The global remittance market is expected to surpass $1 trillion by 2026, with mobile payments playing a major role in this growth.
Another leading example in the remittance app space is Wise (formerly TransferWise), which reported $850 million in revenue in 2023 and handled approximately $230 billion in transactions. Wise has earned a reputation for offering competitive exchange rates, low fees, and supporting over 70 currencies, making it a trusted choice for millions of users worldwide.
Developing a remittance app like Remitly requires a solid understanding of financial tech, user-friendly design, and compliance with international regulations. Whether you’re a startup looking to enter this booming market or an established business exploring new opportunities, building a platform like Remitly can help you tap into a global audience.
In this blog, we’ll walk you through the key features, technologies, and costs involved in creating a remittance app that stands out in today’s competitive market.
Overview of the Remitly App
Remitly is a remittance app that enables people to send money internationally, making cross-border transfers simple and fast. Launched in 2011 under the name BeamIt Mobile, it rebranded to Remitly in 2012. Based in Seattle, Washington, Remitly went public in 2021 and now serves millions of users worldwide.
Why Do Users Love Remitly?
- Fast Transfers: Transfers are often processed instantly, depending on the chosen delivery method, ensuring recipients get their money quickly.
- Multiple Delivery Options: Whether it’s a bank deposit, mobile wallet, cash pickup, or home delivery (in select areas), users can choose the option that best suits their recipient.
- Great Exchange Rates: Remitly offers competitive, real-time exchange rates that often outperform traditional banks, allowing recipients to get more for their money.
Key Market Takeaways for Remittance Apps
Source: GrandViewResearch
A major driver of this growth is the increasing number of cross-border transactions, especially by migrant workers sending money back home. The total value of digital remittance transactions surpassed USD 390 billion in 2022, showing just how important these services are in supporting families across borders.
Several leading remittance apps have emerged to meet the growing demand for easy, cost-effective money transfers. Wise is a top choice thanks to its competitive exchange rates and low fees, making it ideal for both personal and business transfers. Remitly is another popular option, offering international transfers to over 150 countries with flexible payment and receiving methods like cash pickups and mobile wallets.
Partnerships play a key role in the success of these remittance apps. For example, Wise works with over 70 global partners, including major banks and fintech companies like Monzo and Google Pay, to ensure smooth transactions. Similarly, Remitly has built strong partnerships worldwide to expand its services and improve transaction speed and efficiency.
developers, with combined 50000+ coding hours experience
The Perfect Time to Invest in the Development of a Remittance App like Remitly
The remittance app industry is experiencing rapid growth, driven by rising global migration and the increasing demand for faster, cheaper, and more secure cross-border payments. Platforms like Remitly are well-positioned to capitalize on this trend, especially as traditional methods like bank transfers and Western Union become more inefficient and costly. Investors can tap into a massive market by offering innovative digital solutions to meet this demand.
For instance, PayPal generated approximately $850 million in revenue from $230 billion in transactions in 2023 despite its higher fees for international transfers.
Similarly, Wise reported $500 million in revenue in 2023, benefiting from low fees and competitive exchange rates while serving over 80 countries.
Furthermore, advancements in blockchain and artificial intelligence are enhancing the speed, security, and cost-efficiency of cross-border transactions, making now the perfect time for investors to enter the digital remittance space and capitalize on its lucrative growth potential.
Speaking of Remittance Apps….
Nala, a growing remittance startup, has raised $40 million in its Series A funding round to boost its B2B payments platform and expand its remittance services worldwide. This round, one of the largest Series A deals in Africa, was led by Acrew Capital, based in San Francisco, with support from DST Global Partners, Norrsken22, HOF Capital, and angel investors like Ryan King of Chime and Vlad Tenev of Robinhood. The funds will help Nala expand into new markets in Asia and Latin America, building on its $10 million seed round in 2022.
This growth reflects the rising demand for digital remittance services around the world. It’s a great opportunity for other businesses to enter the market and ride this wave of expansion!
Business Model of the Remitly App
Founded in 2011 and headquartered in Seattle, Washington, Remitly has grown rapidly, boasting around 7.3 million active users as of September 2024—a 35% increase from the previous year. The company allows users to send money internationally quickly, securely, and affordably through its mobile app and website, emphasizing transparency in its fee structures.
Business Model Overview
Remitly’s business model is built on two main sources of revenue:
- Transaction Fees: Remitly charges a fee for each money transfer. These fees vary depending on factors like the destination country, transfer amount, and payment method (e.g., credit card or bank transfer). The company is committed to transparent pricing, so users know the costs upfront before making a transfer.
- Foreign Exchange Spreads: In addition to transaction fees, Remitly makes money by applying a markup on exchange rates when converting currencies. This spread typically ranges from 1.5% to 2.5%, providing another significant revenue stream for the company.
Remitly also offers two types of services:
- Economy Service: This option takes a bit longer but comes with lower fees, ideal for those who don’t need immediate transfers.
- Express Service: For those who need to send money instantly, Remitly offers a faster transfer option at a higher cost.
This dual offering allows Remitly to cater to different customer needs and budgets.
Financial Performance
Remitly has experienced impressive growth in recent years.
- Total Revenue: $944.3 million, up 44% from $653.6 million in 2022.
- Send Volume: Increased to $39.5 billion, marking a 38% year-over-year growth.
- Net Loss: $117.8 million, compared to a $114 million loss in 2022.
- Adjusted EBITDA: Improved significantly to $44.5 million, up from a negative $13.6 million in 2022.
Looking ahead, Remitly expects a revenue between $1.225 billion and $1.250 billion in fiscal year 2024, representing a growth rate of about 30% to 32% year-over-year. The company does expect to remain in a GAAP net loss position for the year, but it continues to grow steadily.
Funding and Investors
Since its inception, Remitly has raised over $400 million through multiple funding rounds. The company’s investors include major venture capital firms such as Andreessen Horowitz, DN Capital, and Ribbit Capital. These investments have helped Remitly scale its services and improve its technology infrastructure, contributing to its rapid growth in the competitive remittance market.
Market Position and Competitors
Remitly operates in a crowded market, competing with traditional financial institutions, as well as other fintech companies like Western Union and PayPal’s Xoom. However, Remitly stands out due to its customer-first approach, transparent pricing, and a strong focus on immigrant communities, who often face challenges with traditional remittance services.
Cost of Developing a Remittance App like Remitly
Here are some of the important steps to develop a remittance app like Remitly,
1. Market Research and Planning
Begin by analyzing the remittance market to identify key trends, competitors, and user preferences. Understanding the specific needs of expatriates, migrant workers, and other target groups will help define the app’s unique features.
2. Regulatory Compliance
Ensure compliance with local and international financial regulations, such as KYC and AML laws. Collaborating with legal experts helps avoid potential issues with regulatory authorities.
3. Designing a User-Friendly Interface
Create an intuitive user interface that simplifies the money transfer process. Focus on ease of navigation, minimal steps for transactions, and a multilingual design to cater to a global audience.
4. Secure User Authentication
Implement robust authentication methods, such as two-factor authentication (2FA) and biometric logins. This ensures the safety of user accounts and builds trust in the platform.
5. Integration of Payment Gateways
Incorporate diverse payment options, including debit cards, credit cards, bank transfers, and digital wallets. Ensure these gateways support secure and fast transactions globally.
6. Currency Exchange and Rate Management
Develop algorithms to display real-time exchange rates and calculate fees transparently. Collaborate with reliable financial service providers to maintain competitive rates and accurate conversions.
7. Recipient Management
Provide users with the ability to save recipient details securely for repeat transactions. Include features for verifying recipient details to ensure successful transfers.
8. Advanced Security Features
Incorporate encryption, fraud detection systems, and secure data storage to protect sensitive financial information. Regular security audits and updates will enhance the app’s reliability.
9. Testing and Deployment
Conduct extensive testing to ensure the app operates smoothly under various scenarios. This includes usability testing, security assessments, and performance evaluations. After successful testing, deploy the app across platforms and gather user feedback for continuous improvement.
Cost of Developing a Remittance App like Remitly
| Development Stage | Details | Cost Range |
| 1. Research and Market Analysis | – Competitive analysis, target audience profiling, and regulatory compliance research. | $1,000 – $5,000 |
| – Feasibility study and business plan development. | ||
| 2. Design and UI/UX | – Wireframing and prototyping. | $2,000 – $8,000 |
| – UI and UX design for intuitive and visually appealing interfaces. | ||
| 3. App Features and Functionality | – Core features like user registration, transfer initiation, and transaction tracking. | $3,000 – $15,000 |
| – Payment methods integration and basic security features. | ||
| 4. Front-End Development | – Developing cross-platform interfaces (iOS and Android) with responsive design. | $2,000 – $10,000 |
| 5. Back-End Development | – Server-side logic, database integration, and secure payment processing. | $3,000 – $15,000 |
| – Lightweight API integrations for external financial systems. | ||
| 6. Testing and Quality Assurance | – Unit testing, integration testing, and basic bug fixing. | $1,000 – $5,000 |
| 7. Ongoing Maintenance and Updates | – Regular updates and minor feature improvements post-launch. | $1,000 – $5,000/year |
| Total Cost Range | $10,000 – $100,000 |
Variable Factors Affecting the Remittance App Development Cost like Remitly
Here are some variable factors that can significantly affect the overall development cost of a remittance app, especially those with unique considerations like Remitly:
- Regulatory Compliance: Meeting strict financial regulations and anti-money laundering standards adds significant costs.
- Currency Exchange Rate Fluctuations: Managing risks associated with fluctuating exchange rates requires robust systems and potentially increases development costs.
- Global Payment Network Integration: Integrating with diverse payment networks worldwide adds complexity and cost.
- Advanced Security Measures: Implementing strong security features like fraud detection and encryption is crucial but increases development and maintenance expenses.
Conclusion
Remittance apps like Remitly really empower individuals by offering a convenient, cost-effective, and secure way to send money internationally. For businesses, I see a huge opportunity to develop similar apps to capture a share of the growing global remittance market. They can generate revenue through transaction fees, currency exchange spreads, premium features, and partnerships with financial institutions.
Are you looking to Develop a Remittance App like Remitly?
At Idea Usher, we bring over 500,000 hours of coding experience to help you create a next-gen remittance app, just like Remitly. We focus on building secure, easy-to-use, and feature-packed apps that prioritize a great user experience and meet all regulatory requirements. Our expert team will support you through every step of the process, from the initial idea to the final launch, ensuring your app stands out in the market and delivers impressive returns.
developers, with combined 50000+ coding hours experience
FAQs
1. How to make a remittance app?
To make a remittance app, start by planning the core features such as secure money transfers, multi-currency support, user authentication, and transaction tracking. Choose a suitable tech stack for mobile app development (like React Native or Flutter), integrate payment gateways (such as PayPal, Stripe, or custom bank APIs), and ensure compliance with financial regulations (KYC/AML). Focus on security measures like encryption, two-factor authentication, and fraud detection to protect users’ data and transactions.
2. How long does it take to develop a remittance app?
The development of a remittance app typically takes around 4 to 6 months, depending on the complexity of the features and the development team’s expertise. Simple apps with basic functionality may be ready in 3 months, while more advanced versions with enhanced security, multiple payment options, and cross-border capabilities can take longer. Ongoing updates and maintenance also factor into the overall timeline.
3. Are remittance apps profitable?
Yes, remittance apps can be profitable, as they tap into the global money transfer market, which is vast and growing. They can generate revenue through transaction fees, currency conversion fees, or premium services. However, profitability depends on factors such as user acquisition, competitive pricing, regulatory challenges, and the scale of operations. As the market expands, particularly in emerging economies, the potential for profitability increases.
4. How does a remittance app work?
A remittance app enables users to send money across borders by linking their bank accounts, credit cards, or e-wallets. The sender initiates the transfer by specifying the recipient’s details and the amount, which is then processed through a payment gateway or a remittance partner. The app calculates the exchange rate, deducts any fees, and facilitates the transfer. The recipient can receive funds via bank deposit, mobile wallet, or cash pickup, depending on the service’s options. All transactions are encrypted and monitored for security and compliance.
