Digital money transfers to reach 2bn by 2024

Global digital money transfer transaction volume will reach two billion by 2024, up from 1.1 billion in 2019, according to Juniper Research.

The market analysis suggested 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.

The company's predicted that the mobile channel will account for 68 per cent of transaction volume in 2024; up from 63 per cent in 2019, with this dominance primarily due to the superior app-based experiences available on mobile, rising interoperability of mobile money solutions and 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," he added.

The research found that international digital money transfer 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 recommended that money transfer operators make partnerships in emerging markets a high priority, including with physical players such as supermarkets or retailers.

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