New data from Juniper
Research has found that international digital remittances will reach
$525 billion by 2024, up from an estimated $332 in 2019.
According to the new research, Digital
Money Transfer & Remittances: Domestic & International Markets 2019-2024,
the mobile channel will become increasingly popular; accounting for 41%
of international digital money transfers by volume in 2024, up from 33%
in 2019.
Meanwhile, blockchain-based payments have the potential to increase
digital payments further, as the technology has a high possibility of
disrupting existing business models. Juniper recommends that traditional
money transfer operators aggressively pursue partnerships to effectively
leverage blockchain for future transformation.
Blockchain has Strong Potential in Remittances
The research found that by utilising a blockchain-powered network,
operators can offer their users a much faster, cheaper and more
transparent service. Solutions such as RippleNet and IBM
Blockchain World Wire are set to transform the area, by connecting
diverse sets of partners in different markets to enable more effective
payments.
In order to succeed, blockchain platforms must focus on gaining as many
partners as possible to increase the reach of their networks. This is an
opportunity for traditional money transfer operators to change the way
they operate; reorienting their business models around the benefits
blockchain enables.
For more insights, download the free whitepaper: Why
Blockchain Will Revolutionise Money Transfer.
Traditional Players Still Need to Innovate to Meet Fintech Challenge
The research also found that the rise of fintech players, such as TransferWise
and WorldRemit has meant that traditional players have had to
evolve rapidly, with Western Union and MoneyGram
both focusing on digital strategies going forward. However, mere
digitisation of strategies is not sufficient. The research found that
fintech players offer a superior user experience, with heightened
transparency on fees a crucial differentiator.
Research author Nick Maynard explained: “While traditional operators
have launched digital solutions, they have yet to adopt transparent
pricing of transfers. Unless operators accept this requirement, they
will continue to lose market share. Innovation must be the number one
priority.”
Juniper Research provides research and analytical services to the global
hi-tech communications sector; providing consultancy, analyst reports
and industry commentary.
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