According to a new report from Juniper Research, the international mobile money transfer market will be worth in excess of $65bn by 2014, based on gross transaction values – driven principally from migrant workers based in developed countries.
However, Juniper's new report – ‘Mobile Money Transfer & Remittances: Markets, Forecasts & Strategies 2009-2014' – also identified a number of inhibiting factors such as rising global unemployment and increased immigration controls by governments which will hold back the market until the recession is over.
Howard Wilcox, Senior Analyst, commented: "Our view is very clear – in the long term this market proposition is highly attractive. Mobile remittance offers a speedy, cost effective and convenient channel for people to send money regularly to friends and family at home, who themselves may not have bank accounts".
The mobile money transfer report also revealed a new emerging sector for microcredits, saving accounts and insurance payments. Known as "sophisticated financial services" these services are entirely focused on developing countries where users do not have access to traditional banking or financial services or simply use alternative means of payment traditionally such as physically transporting cash, or storing cash savings at home. The report found that is new market for financial services on the mobile, can add to the attractiveness of mobile money services, and help to reduce mobile operator churn.
Further findings are said to include:
- North America and Western Europe will be the main remittance sending regions in 2014
- Typically international transfers are conducted by a smaller base of users than national or domestic transfers, but transaction values are higher, payments are more regular and less frequent.