Report reveals challenges faced by remittance senders and receivers in Morocco

83% of those who receive remittances in Morocco said the global crisis has driven them to request more money from their senders abroad, and more than 76% of senders say are pressured to send more money, according to Western Union’s inaugural Global Money Transfer Index launched today.

Senders are also feeling the pinch of the cost of living crisis, with 71% explaining that they are unable to send as much money as they used to.

78% of receivers agree that they must ask for larger sums in the next 12 months, while 75% of senders confirm that they will need to find a way to transfer more funds abroad in the year ahead.

The report showed that a majority of receivers (64%) stated that they receive more money than usual if the Moroccan Dirham (MAD) drops in value.

Additionally, a large majority of senders (83%) are keen to access a money transfer feature that would enable them to monitor exchange rates in real-time.

Both senders (14%) and receivers (28%) consider speed of transaction as the primary factor when choosing a brand for money transfer services.

However, at present, only 24% of receivers choose completely digital services to collect their money, while the majority (38%) prefer a choice of online or face-to-face options, and 30% like to pick up their funds in cash. In the future, a majority of receivers (64%) will prefer a range of digital and phsyical collection options, while only 19% of users of digital-only services will continue to do so.

Lack of trust is a significant barrier to the adoption of digital money transfer services among receivers (24%), and it is the joint top reason why senders (21%) have not made online transactions, alongside their preference for face-to-face interaction when making transfers (21%).

As Morocco’s digital payments ecosystem continues to evolve, it is crucial to harness the power of technology to drive financial inclusion and build more inclusive societies, the Index said.

Despite their reluctance towards digital transfers, consumers are interested in payments innovation. The majority of receivers (84%) want providers to align services with their other financial commitments, such as utility bill payments, in a single mobile app.

This is also a feature that 86% of senders would like brands to make available. In addition, 81% of receivers are eager to receive their funds using a pre-paid card or e-wallet, and 81% say they would be more likely to use a service to receive funds if it was available in their language.

While 80% of receivers state that cryptocurrency must become mainstream before they will use it for transfers, almost three-quarters (73%) believe it will be an acceptable option for moving money in the future.

Senders are frustrated with the registration process, and 86% of them would prefer instant and reliable registration using biometrics or facial recognition.

The report also said that 72% of senders are irritated by the form-filling and validation process for repeat customers.

The survey  questioned over 30,000 consumers aged 18 and above who engage in international money transfers. It touched on remittances in various countries including the United Arab Emirates, India, South Africa, and Vietnam, among others.

The study was conducted between October 31, 2022 and January 10, 2023.