A new study from Juniper Research has found that global international digital money transfer transaction volume will reach 2 billion by 2024; up from 1.1 billion in 2019.
The new research, Digital International Money Transfer: Key Trends, Player Innovation & Market Forecasts 2019-2024, found that both online and mobile channels are achieving strong growth, with fintech disruptors and market incumbents rapidly gaining traffic. However, the research noted that much of this growth will be at the expense of unofficial remittances, such as funds sent with travelling family members, rather than established formal remittance channels. Juniper Research recommended that money transfer operators invest heavily in digital transformation, whilst retaining strong agent networks, to ensure they gain the full benefit of digital migration.
Mobile Transfer Will Continue to Dominate, Requiring Vendor Innovation
The research found that the mobile channel will account for 68% of transaction volume in 2024; up from 63% in 2019. The study found that this dominance is primarily due to the superior app-based experiences available on mobile, rising interoperability of mobile money solutions and highly competitive pricing from app-based disruptors.
Research author Nick Maynard explained: “Mobile has become the go-to channel for international money transfer; dominating the digital landscape. This means that incumbents in the area, such as Western Union and MoneyGram, must relentlessly focus on their app experiences; fully embracing digital transformation. A failure to do so will result in a steady erosion of market share by digitally-native disruptors”.
Agent Networks Crucial to Success in Emerging Markets
The new research found that international digital money transfer, while highly compelling via a digital channel, requires effective agent partnerships in recipient countries to ensure success. Over time, both ends of the money transfer transaction will be digital; boosted by mobile money interoperability but, for now, retaining a physical cash out location will be crucial. Juniper Research recommends that money transfer operators make partnerships in emerging markets a high priority, including with physical players such as supermarkets or retailers.