New data from Juniper Research has found that the volume of domestic money transfers via mobiles will exceed 203 billion in 2024, up from 130 billion in 2019. Domestic P2P payments will drive this growth; accounting for 80% of all domestic transfers in 2024.
According to the new research, Digital Money Transfer & Remittances: Domestic & International Markets 2019-2024, domestic transfers are being driven by increasingly easy mobile payment systems. In developed markets, digital wallets have made P2P payments far simpler, with services including PayPal, Venmo and Cash App enabling low cost, fast and secure payments for a rapidly growing number of users. In developing markets, mobile money provided by network operators is a key enabler of financial inclusion; enabling the unbanked to enter into the wider digital economy.
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Social Payments Driving P2P Success
The research found that the rise in social payments is driving growth in the mobile P2P channel. Payments via Venmo have a strong social element, which has boosted its popularity with millennials. The introduction of Libra by Facebook will further leverage social features; boosting the potential of social payments in a vast addressable market.
Research author Nick Maynard explained: “Social payments are highly appealing to younger users, as they enable simple and effective digital payments to displace cash. However, data security concerns about mixing payments and social networks will impact consumer attitudes among older users”.
Chinese Market Leading for Now
Largely due to the ‘red envelope’ phenomenon in China during the Chinese New Year, Chinese transactions will account for 68% of the total volume of domestic mobile transfers in 2019. Alipay and WeChat Pay have become a crucial part of the process and will drive future growth in this market. However, China’s share of the overall transaction volume will gradually fall; accounting for a reduced 57% by 2024. Growth is fastest in Africa, while operator-driven mobile money solutions are boosting financial inclusion at a rapid rate.