The World Bank estimates that remittance flows to low- and middle-income countries reached $529 billion in 2018, an increase of 9.6 percent over the previous record high of $483 billion in 2017. All global remittances -- including money transfer flows to high-income countries -- reached $689 billion in 2018.
Mobile and online (digital) money transfer offerings will continue to transform the market. New technologies, such as blockchain, will further accelerate the trend.
Money Transfer Market Development
According to the latest worldwide market study by Juniper Research, international digital remittances will reach $525 billion by 2024 -- that's up from an estimated $332 in 2019.
The mobile channel will become increasingly popular; accounting for 41 percent of international digital money transfers by volume in 2024 -- that's up from 33 percent in 2019.
Meanwhile, blockchain-based payments have the potential to increase digital payments further, as the technology has a high possibility of disrupting existing business models.
Juniper recommends that traditional money transfer operators aggressively pursue partnerships to effectively leverage blockchain technologies for future transformation.
According to the Juniper assessment, by utilizing a blockchain-powered network, operators can offer their customers a much faster, cheaper and more transparent service.
Solutions such as RippleNet and IBM Blockchain World Wire are set to transform the sector, by connecting diverse sets of partners in different markets to enable more effective payments.
This is an opportunity for traditional money transfer operators to change the way they operate -- reorienting their business models around the inherent benefits that blockchain enables.
The rise of fintech players -- such as TransferWise and WorldRemit -- has meant that traditional money transfer operators have had to evolve rapidly, with Western Union and MoneyGram both focusing on digital strategies going forward.
Outlook for Digital Money Transfer Apps
However, mere digitization of strategies is not sufficient. Juniper found that fintech players offer a superior user experience, with heightened transparency on fees a crucial differentiator.
"While traditional operators have launched digital solutions, they have yet to adopt transparent pricing of transfers. Unless operators accept this requirement, they will continue to lose market share. Innovation must be the number one priority," said Nick Maynard, senior analyst at Juniper Research.
Mobile and online (digital) money transfer offerings will continue to transform the market. New technologies, such as blockchain, will further accelerate the trend.
Money Transfer Market Development
According to the latest worldwide market study by Juniper Research, international digital remittances will reach $525 billion by 2024 -- that's up from an estimated $332 in 2019.
The mobile channel will become increasingly popular; accounting for 41 percent of international digital money transfers by volume in 2024 -- that's up from 33 percent in 2019.
Meanwhile, blockchain-based payments have the potential to increase digital payments further, as the technology has a high possibility of disrupting existing business models.
Juniper recommends that traditional money transfer operators aggressively pursue partnerships to effectively leverage blockchain technologies for future transformation.
According to the Juniper assessment, by utilizing a blockchain-powered network, operators can offer their customers a much faster, cheaper and more transparent service.
Solutions such as RippleNet and IBM Blockchain World Wire are set to transform the sector, by connecting diverse sets of partners in different markets to enable more effective payments.
This is an opportunity for traditional money transfer operators to change the way they operate -- reorienting their business models around the inherent benefits that blockchain enables.
The rise of fintech players -- such as TransferWise and WorldRemit -- has meant that traditional money transfer operators have had to evolve rapidly, with Western Union and MoneyGram both focusing on digital strategies going forward.
Outlook for Digital Money Transfer Apps
However, mere digitization of strategies is not sufficient. Juniper found that fintech players offer a superior user experience, with heightened transparency on fees a crucial differentiator.
"While traditional operators have launched digital solutions, they have yet to adopt transparent pricing of transfers. Unless operators accept this requirement, they will continue to lose market share. Innovation must be the number one priority," said Nick Maynard, senior analyst at Juniper Research.