![]() They required a chain of mediators, additional paperwork and charges that surfaced late in the transaction. Historically, money transfers have been hindered by long settlement periods, high transaction costs, limited accessibility and lack of transparency. 7 The same survey found that younger adults are more likely than older adults to use these payment platforms.Ĥ. What are some common pain points that come with money transfers? adults said they had used a P2P payment platform, with 24% of those surveyed indicating they used such platforms frequently. 6 In recent years, these apps have increasingly expanded internationally to connect payments with customers inside and outside of China. Alipay, with 1.3 billion users, and WeChat Pay, with 900 million users, dominate the digital wallet and mobile money transfer market in China and beyond. In the APAC region, not only are WeChat Pay and Alipay the top payment apps there, they are also the largest in the world. 5 Many of these consumers favored a bank transfer for sending money to family and friends, though less so for paying for purchases online or in-store. In Europe, a June 2022 survey found that 46% of consumers had made an instant bank transfer in the previous three months, and 81% say they are “likely” to make an A2A payment in the future. While consumers have long used conventional bank transfers to make certain types of payments both domestically and across borders, P2P platforms are attracting users who seek greater convenience and flexibility. Who’s using money transfer services and why? In Africa, where many consumers rely exclusively on mobile banking, greater awareness of money transfer will fuel growth in the coming years.Įurope’s market for money transfer is well established, with many players that serve and compete across nearly every country in Europe.ģ. 3 This makes it a major market for money transfer services more broadly.ĭeveloping countries in the Asia-Pacific market are expected to fuel growth in that region, as both cross-border purchases and travel are prevalent while remittances in South Asia were the highest of any global region, growing 6.9 percent to $157 billion in 2021, according to a report from the World Bank. North America claims the largest share of the global remittance market, in particular, and accounts for over 25% of global revenue. What are the key markets for money transfer? This trend is evident for in-country transactions, and increasingly, to fund cross-border purchases and remittances.Ģ. These five apps alone represented over 187 million downloads in 2021. Payment apps like PayPal, Google Pay, Alipay in China, PhonePe in India, and Cash App in the U.S. Increased digitization of money transfer services is a big driver of growth, improving access and convenience and reducing fees. These platforms, performing A2A payments, eliminate the need to anticipate and supply cash-on-hand requirements for both consumers and merchants.įor merchants, A2A payments can often cut down on transaction costs and the risks involved with handling cash. What’s driving recent growth in money transfers?Īs they become more familiar with its convenience, consumers around the world are choosing to use peer-to-peer (P2P) payment platforms, often instead of cash or cards. Here are seven key considerations for merchants that are exploring the world of today’s money transfers.ġ. But while the volume of money transfers increases, merchants and consumers across all markets still deal with challenges and inconsistencies in how their transactions are executed. 1 As the trend grows, merchants are wellpositioned to benefit from these speedy A2A settlements and potentially lower fees. In all, the value of digital domestic money transfer payments is expected to hit $3.4 trillion throughout the world in 2025 as the volume of payments is expected to exceed 300 billion by 2026. Indeed, all indications suggest these growing money transfer options will represent an increasing share of transactions going forward thanks to improvements in access and security. As consumers worldwide become more comfortable using money transfer apps in their day-to-day lives, the expectation is growing that account-to-account (A2A) payments can be used anywhere and for anything.įor online purchases, travel or sending money cross-border, cardholders want to move money simply and easily with a push of a button.
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