Global international digital money transfer transaction volume will reach 2 billion by 2024; up from 1.1 billion in 2019, says the new research from Juniper Research.
Both online and mobile channels are achieving strong growth, with fintech disruptors and market incumbents rapidly gaining traffic, the research said.
Mobile channel will account for 68 percent of transaction volume in 2024; up from 63 percent in 2019.
The dominance of mobile 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, according to Juniper Research.
The research firm recommends that money transfer operators invest heavily in digital transformation, whilst retaining strong agent networks, to ensure they gain the full benefit of digital migration.
Research author Nick Maynard said, “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.”
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.