Digital domestic money transfer transaction volume to surpass 300 bn globally by 2026
Hampshire, UK. 25 July 2022 – A new study from Juniper Research has found that the volume of digital domestic money transfer payments will exceed 300 billion globally for the first time in 2026, from 207 billion in 2022. This represents a growth of nearly 50%.
Key Drivers: Superapps, where multiple services including payment and financial transaction processing are available in one app, are driving digitisation of previously cash-based payments, by including messaging and access to other services alongside payments.
China, US and India to account for 74% of global transactions by 2026
The research predicts that the top three countries will account for just under 74% of global digital domestic money transfer transactions in 2026. It identified the top three markets for usage as:
The appeal of social payments, in which payments are integrated into social platforms, have driven transactions in these three countries. WeChat Pay in China and Venmo in the US were cited by the research as examples of how social payments are driving domestic money transfer. The report recommends that money transfer vendors identify the most popular social platforms in each country and aim to create partnerships that enable social payments.
Research co-author Damla Sat explains, “Money transfer vendors should focus on the highest growth markets to secure the best return on investment, with Latin America and West Europe identified as having the strongest forecast growth rates.”
Differentiation challenging in a highly competitive market
The research identified differentiation as a key challenge for money transfer apps, particularly given the highly competitive market landscape. The report identified the superapp approach, where a marketplace of different services is offered in-app, as key to creating money transfer apps that offer greater value for users. Therefore, it recommends vendors onboard other financial service providers and eCommerce merchants, to boost the user value their apps represent.
To find out more, see full research: Digital Money Transfer & Remittances: Key Trends, Competitor Leaderboards & Market Forecasts 2022-2027
Download the free whitepaper: Three Key Trends Transforming Digital Money Transfer