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

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Why Cloud Fuels Net-New Digital Business Growth

CEOs and Line of Business (LoB) leaders seek the fastest path to meaningful digital transformation advancement. Meanwhile, investment trends in cloud computing infrastructure continue to expand the capabilities, accelerating growth across all segments within the public cloud services market. According to the latest worldwide market study by Gartner, the four key trends are cloud ubiquity, regional cloud ecosystems, sustainability or carbon-intelligent cloud, and automated programmable cloud infrastructure. "The economic, organizational and societal impact of the pandemic will continue to serve as a catalyst for digital innovation and adoption of cloud services," said Henrique Cecci, senior research director at Gartner . "This is especially true for use cases such as collaboration, remote work, and new digital services to support a hybrid workforce." Global Cloud Computing Market Development Hybrid, multi-cloud and edge computing environments are growing and setting

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente