Skip to main content

Mobile International Money Transfers will Exceed $10B

The mobile communication channel has proven to enable the development of financial services in a way that is not dependent upon the existing traditional commercial infrastructure in a country.

Key benefits are all associated with the ability to provide new services while avoiding the usual investment in establishing physical banking facilities -- particularly in emerging markets and developing nations.

As a result, international remittances via mobile phones will exceed $10 billion for the first time this year, according to the latest global market study by Juniper Research.

However, their comprehensive assessment found that the cost and complexity of regulating cash transfers had led many mobile network service providers to focus exclusively on airtime top-ups.

According to Juniper, only a handful of players -- such as eServGlobal HomeSend, along with established money transfer organizations Western Union and Moneygram -- were seeing significant traction on mobile devices.

In many cases, the early cash transfer service providers have failed to establish a critical mass of mobile wallets in recipient markets, reducing the opportunity for inbound remittance.


Primary Market Entry Barriers to Overcome

Juniper claims that regulatory complexity -- and other forms of government intervention, such as new taxes -- remains the primary hurdle for most mobile network service providers that attempt deployment in new markets.

"Service providers must first obtain licences for each remittance corridor; they face due diligence and risk assessment checks, which may in turn oblige them to introduce additional mechanisms to address any issues which emerge. All these processes are time consuming and expensive," said Dr Windsor Holden, research director at Juniper Research.

But while international cash remittance growth has been somewhat slow, transaction volumes have surged in the mobile network airtime top-up market, where service providers are not required to obtain money licences.

The report found that average annual airtime top-ups across key remittance corridors were in excess of average individual mobile spend levels in receiving countries, thereby covering recipient telecommunications bills for the year.

Other key findings from the market study include:

  • Nearly 400 million mobile phone users worldwide are expected to use their handsets for mobile money transfer by 2018.
  • Mobile money taxes in sub-Saharan Africa are threatening the growth of domestic money transfer services.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Securing Fintech via Mobile User Authentication

The global COVID-19 pandemic accelerated the development and adoption of online digital services, including mobile user authentication services. This led to more Fintech solutions growth at a rapid rate from 2020 to 2022, as companies started to adopt one-touch verification. These services enable CIOs and CTOs to increase the level of security offered to customers who are concerned about online financial transactions. However, there are numerous other industry use cases that require increased security measures to protect sensitive data. According to the latest worldwide market study by Juniper Research, mobile network operators will generate $27 billion from the termination of Short Message Service (SMS) related to multi-factor authentication in 2022 -- that's an increase from $25 billion in 2021. Commercial SMS Apps Market Development Juniper analysts predict this 5 percent growth will be driven by increased pressure on digital service providers to offer highly secure user authent