A new study finds that digital domestic money transfer transaction values will rise from $2 trillion in 2020 to $3.4 trillion in 2025; driven by growth of mobile money transfers.
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 Social Payments
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 money transfer vendors develop the social elements of their apps in order to combat the increased competition from conversational commerce players.
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.
“It is critical for money transfer players to create user-friendly app experiences around their new instant payment capabilities to ensure they fully leverage the benefits, and that they remain relevant in this rapidly advancing market,” comments research author Susannah Hampton at Juniper.
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