New research — Digital Money Transfer & Remittances: Domestic & International Markets 2019-2024 — from Juniper shows that a rise in social payments is driving growth in the mobile P2P channel, with domestic P2P payments accounting for 80% of all domestic transfers in 2024.
In developed markets, digital wallets have made P2P payments far simpler, with services including PayPal, Venmo and Cash App enabling low cost, fast and secure payments for a rapidly growing number of users.
“Payments via Venmo have a strong social element, which has boosted its popularity with millennials. The introduction of Libra by Facebook will further leverage social features, boosting the potential of social payments in a vast addressable market,” Juniper says.
And according to Juniper, in developing markets, mobile money provided by network operators is a key enabler of financial inclusions, enabling the “unbanked” to enter into the wider digital economy.
Maynard says that, largely due to the "red envelope" phenomenon in China during the Chinese New Year, Chinese transactions would account for 68% of the total volume of domestic mobile transfers in 2019.
“Alipay and WeChat Pay have become a crucial part of the process and will drive future growth in this market. However, China’s share of the overall transaction volume will gradually fall, accounting for a reduced 57% by 2024.
“Growth is fastest in Africa, while operator-driven mobile money solutions are boosting financial inclusion at a rapid rate,” Maynard said.