Driving Value Added Services & Content|Billing & Engagement In Motion|Minutes, Messages & Traffic That Pays|Engage & Commercialize Connected Consumers|Making Interactive Media Pay|Billing & Alternative Payments That Convert|Mobile Strategies For Merchants & Content Owners|Monetising Premium Content & Services
MobileArtsMAIN Ad
Digital Select Ltd
KanzarooMAIN Ad
Golden Goose
MediaXO Main Ad
Evina Header Banner Ad

Domestic digital money transfer values to grow to $3.4trn by 2025, as mobile money drives growth

0

Digital domestic money transfer transaction values will rise from $2trn in 2020 to $3.4trn in 2025, driven by the growth of mobile money transfers according to a new study from Juniper Research.

Mobile transactions will represent an 89% share of total transaction value by 2025, with drivers of volume growth being P2P payment apps in developed markets and mobile money in emerging markets.

The research identified that to compete in a congested market, mobile money transfer apps must leverage instant payment capabilities to ensure the best user experience.

Mobile money and the potential of social payments

The new research, Digital Money Transfer & Remittances: Vendor Strategies, Opportunities and Market Forecasts 2021-2025, found that services such as Venmo and Zelle have propelled mobile apps to dominance in domestic money transfer.

The research identified that conversational platforms, such as WhatsApp, are poised for growth, with the successful launch of its payment feature in India and the recent green light for the roll-out of its payment solution in Brazil.

The report recommends that money transfer vendors develop the social elements of their apps in order to combat the increased competition from conversational commerce players.

The instant payments threat

The report found that with shifting customer expectations, existing money transfer models face an increasing threat from instant payments, with domestic instant payment transaction values forecast to grow from $524bn in 2020, to $2trn in 2025. Instant payments can significantly reduce transaction speed and cost, compared with digital wallet and app-based solutions, and therefore pose a significant threat to the monetisation models of established P2P payment options which levy fees for fast transfers.

Research author Susannah Hampton explains: “It is critical for money transfer players to create user-friendly app experiences around their new instant payment capabilities to ensure that they fully leverage the benefits, and that they remain relevant in this rapidly advancing market.”

>>> Don't miss out on the latest news, analysis and key insider views from around the industry via the Telemedia Newsletter. Totally free and published every Thursday - Sign up for your copy TODAY
Share.

Leave A Reply