Digital domestic money transfer values to surpass $3T in 2025

This rise will be driven by the growth of mobile money transfers

payments

Digital domestic money transfer values to surpass $3T in 2025. Source: unsplash.com

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.

It is critical for money transfer players to create user-friendly app experiences around their new instant payment capabilities to ensure that they fully leverage the benefits and that they remain relevant in this rapidly advancing market
Susannah Hampton, research author

We’ve reported that online purchases accounted for over $900 billion in online retailing.

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