The volume of domestic mobile payments is estimated to grow by 56 per cent to reach 203 billion by 2024, a new data from Juniper Research, has shown.
The report published on Monday noted that domestic Peer-to-Peer payments will drive this growth; accounting for 80 per cent of all domestic transfers in 2024.
The study found that growth would be fastest in Nigeria and other African countries as operator-driven mobile money solutions were boosting financial inclusion at a rapid rate.
According to the new research entitled, ‘Digital Money Transfer & Remittances: Domestic & International Markets 2019-2024,’ domestic transfers are being driven by increasingly easy mobile payment systems.
Analysts at Juniper Research noted that in developing markets, mobile money provided by network operators was a key enabler of financial inclusion; enabling the unbanked to enter into the wider digital economy.
“In developed markets, digital wallets have made Peer-to-Peer payments simpler, with services including PayPal, Venmo and Cash App enabling low cost, fast and secure payments for a rapidly growing number of users,” the report stated.
The study found that the rise in social payments was driving growth in the mobile P2P channel, adding that payments via Venmo had a strong social element, which had boosted its popularity with millennials. It explained that the introduction of Libra by Facebook would further leverage social features, boosting the potential of social payments in a vast addressable market.
Research author at Juniper Research, Nick Maynard said, “Social payments are highly appealing to younger users, as they enable simple and effective digital payments to displace cash. However, data security concerns about mixing payments and social networks will impact consumer attitudes among older users.”
Largely due to the ‘red envelope’ phenomenon in China during the Chinese New Year, the report stated that Chinese transactions would account for 68 per cent of the total volume of domestic mobile transfers in 2019.
According to the research, Alipay and WeChat Pay have become a crucial part of the process and will drive future growth in this market.