CCR Magazine

You are here  :Home arrow News arrow Mobile International Remittances to Exceed $25Bn by 2018, Rising to 4% of Total
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Mobile International Remittances to Exceed $25Bn by 2018, Rising to 4% of Total PDF Print E-mail
Tuesday, 14 June 2016
A new study from Juniper Research has found that international remittances, including airtime top ups via mobile phones, will exceed $25 billion by 2018, up 67% from an estimated $15 billion in 2015.  

The research found a significant upsurge in international remittance activity in the past 2 years with a number of cross-border mobile remittance services being deployed. For example, PayPal-owned Xoom announced in April 2016 that it will expand its services to 13 new recipient countries.

It found that international mobile money transfers are forecast to grow in frequency in all regions as users become more accustomed to using the service. Higher value transactions are also forecast, going forward.

Digital Disruption Driving Mobile Remittances
The new research, Digital Money Transfer & Remittances: Domestic & International Markets 2016-2021, noted that the international remittance market is increasingly being disrupted by a proliferation of smaller, agile ‘pure-play’ digital providers such as PayPal Xoom and WorldRemit.

“Previously dominated by Western Union and MoneyGram, the international mobile money transfer is becoming increasingly competitive with these new mobile remittance providers offering markedly lower prices than the established players”, noted research author Nitin Bhas. He pointed out that London-based start-up TransferWise offers more of a direct threat to the traditional players, as it offers extremely low (0.5%) transaction fees for higher value ($295+) transactions.

Additionally, the research found that mobile international remittances will also have an impact on remittances via informal channels – i.e. the ‘grey remittance’ market composed primarily of cash - by offering a lower-cost alternative to traditional remittance services.

Airtime Top-up Surges
The research also found that while international cash remittance growth had slowed, transaction volumes have surged in the airtime top-up market, where service providers are not required to obtain money licences. The simplicity of airtime and the need to facilitate basic P2P money flow means that these still represent the initial deployments in many markets. It also enables the sender of the remittance to control precisely what that remittance will be used for.

However, the international airtime transfer segment represented very high commission rates when compared to international remittance. Nevertheless, Juniper forecasts that the total number of mobile international airtime top up transactions will approach half a billion for the first time in 2018.
 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197