Fintech

Digital Domestic Money Transfer Transaction Volume to Surpass 300 Billion Globally by 2026

A new study found the volume of digital domestic money transfer payments will exceed 300 billion globally for the first time in 2026, from 207 billion in 2022; representing growth of nearly 50%.

•    Key Drivers: Superapps, where multiple services including payment and financial transaction processing are available in one app, are driving digitisation of previously cash-based payments, by including messaging and access to other services alongside payments.

•    To find out more, see full research: Digital Money Transfer & Remittances: Key Trends, Competitor Leaderboards & Market Forecasts 2022-2027

China, US and India to Account for 74% of Global Transactions by 2026

The research predicts the top three countries will account for just under 74% of global digital domestic money transfer transactions in 2026, identifying the top three markets for usage as:

1.    China
2.    US
3.    India

The appeal of social payments, where payments are integrated into social platforms, has driven transactions in these three countries. WeChat Pay in China and Venmo in the US were cited by the research as examples of how social payments are driving domestic money transfer. The report recommends money transfer vendors identify the most popular social platforms in each country and aim to create partnerships that enable social payments.

Research co-author Damla Sat explained: “Money transfer vendors should focus on highest growth markets to secure the best return on investment, with Latin America and West Europe identified as having the strongest forecast growth rates.”

Differentiation Challenging in a Highly Competitive Market

The research identified differentiation as a key challenge for money transfer apps, particularly given the highly competitive market landscape. The report identified the superapp approach, where a marketplace of different services is offered in-app, as key to creating money transfer apps that offer greater value for users. Therefore, it recommends vendors onboard other financial service providers and eCommerce merchants, to boost the unique user value their apps represent.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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