This rise will be driven by the growth of mobile money transfers
According to Juniper Research, digital domestic money transfer transaction values will rise from $2 trillion in 2020 to $3.4 trillion in 2025.
Mobile transactions will represent an 89% share of total transaction value by 2025, with drivers of volume growth being P2P payment apps in developed markets and mobile money in emerging markets.
The research has revealed that services such as Venmo and Zelle have propelled mobile apps to dominance in domestic money transfers.
It has also highlighted that with shifting customer expectations, existing money transfer models face an increasing threat from instant payments, with domestic instant payment transaction values forecast to grow from $524 billion in 2020 to $2 trillion in 2025.
Instant payments can significantly reduce transaction speed and cost, compared with digital wallet and app-based solutions, and therefore pose a significant threat to the monetization models of established P2P payment options which levy fees for fast transfers.
We’ve reported that online purchases accounted for over $900 billion in online retailing.