Foreign Currency Exchange Services in the US - Industry Market Research Report

Around the World: Revenue Will Likely Increase due to Improving Downstream Demand Despite Increased Competition

The Foreign Currency Exchange Services industry was aided over the five years to 2021 by continued growth in international trade and travel. Downstream corporate clients rely on industry operators for business-to-business payment services, while downstream individuals generally use credit and debit card processing services and currency exchange offerings. The anticipated 2.7% annualized increase in the total value of world trade has boosted demand from these major markets during the five-year period. Moreover, technological change in the form of improved debit card offerings and mobile apps has made industry services more convenient. As a result of these trends, industry revenue is expected to increase an annualized 0.3% to $778.2 million over the five years to 2021; this growth includes an expected 25.6% rise in 2021 alone. Despite a steady increase in demand during the period, cost-based competition has led profit to shrink during the period. The major reason for this decline is the spread of COVID-19 (coronavirus) in 2020, in which revenue declined 29.4% as domestic and international travel was affected.

This industry includes operators that offer foreign currency exchange services to consumers and businesses. Industry services include business-to-business payment services, credit and debit card processing services for foreign transactions and traditional currency exchange. Bank-holding companies that do not charge fees for foreign currency exchange services are not included in the industry, while industry-specific ATMs are not considered establishments.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.