The international, mobile money transfer market is expected to see an impressive growth in the near future, a recent report from Juniper Research shows. It seems that the market will grow beyond the US$65 billion mark by 2014, due to gross transaction values, which will be mainly driven by the migration of workers that are based in developed countries.
According to the research firm's report, the mobile money transfer market will also see a great deal of inhibitors, among which the rising global unemployment rate can be named. In addition, Juniper research notes that the immigration controls by governments is on the rise as well and this is another factor that will slow down the market until the financial turmoil ends.
“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,” Howard Wilcox, senior analyst, commented on the findings.
The new report from Juniper Research also unveils other aspects of the mobile money transfer market, including the fact that a new sector is emerging, which involves microcredits, saving accounts, and insurance payments. The area is known as the “sophisticated financial services” segment, and it contains offerings that are aimed only at emerging countries.
The rising of these services is mainly based on the fact that users in the target markets do not enjoy access to traditional banking or financial services. But they are also driven upwards by the seek of alternative means of payment. According to the report, the new market for financial services can spur the traction of mobile money services among users, while helping carriers reduce the churn as well.
The Juniper Research report is available on the firm's website. It further incorporates comprehensive six year forecasting for parameters like users, transactions, and values for the mobile transfers. Other findings of the report also 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.