Communications and Technology Industry Research

The global market for mobile money transfer will be worth more than $65 billion by 2014, according to a new report put out by Juniper Research.

 

In its “Mobile Money Transfer & Remittances: Markets, Forecasts & Strategies 2009-2014” report, the analyst firm said that transferring money through mobile phone is becoming popular among migrant workers in developed countries like United States.

 

However, the report also warns that the increasing global unemployment rate and increased immigration controls by governments may hold back the market for few more years.

 

“Our view is very clear -- in the long term this market proposition is highly attractive,” said senior analyst Howard Wilcox. “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.”

 

In developing countries, where very few people hold bank accounts and credit cards, the banking sector has to penetrate a big market yet. In contrast a bigger cross-section of the population possesses or has access to a mobile phone. Juniper suggests that many more people might use a mobile phone for banking in these emerging economies.

 

The report’s authors foresee larger growth of mobile money transfer in developing countries.

 

The report also talks about a new emerging sector for micro-credits, savings accounts and insurance payments. Known as “sophisticated financial services,” these services are entirely focused on developing countries where users do not have access to traditional banking or financial services or simply use alternative means of payment, such as physically transporting cash, or storing cash savings at home.

 

The analyst firm says micro-credits will be new market for financial services on the mobile as that can bolster the demand for mobile money service helping to reduce mobile operator churn. 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.

 

The report contains six-year forecasting for all the key market parameters, including users, transactions and values for national and international transfers, and sophisticated mobile financial services.