Domestic Digital Money Transfer Values to Grow to $3.4 Trillion by 2025, as Mobile Money Drives Growth
63% Growth in Values Between 2020 and 2025
Hampshire, UK – 19th April 2021:
A new study from Juniper Research
has found that digital domestic money transfer transaction values will rise from $2 trillion in 2020 to $3.4 trillion in 2025; driven by the growth of mobile money transfers. 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.
For more insights, download the free whitepaper: Digital Money Transfer & Remittances: The Instant Payment Transformation
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 $524 billion in 2020, to $2 trillion 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 explained: ‘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
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