Global mobile money transfer to exceed $65 bn by 2014: Juniper Research

The next few years will be good for mobile money transfer market. According to a new research report published by Juniper Research, “the international mobile money transfer market will be worth in excess of $65 bn by 2014, based on gross transaction values. This growth will be driven principally by migrant workers based in developed countries, but inhibiting factors include rising global unemployment and increased immigration controls by the governments.”

Also, the report revealed a new emerging sector for microcredits, saving accounts and insurance payment services that are entirely focused on developing countries where users do not have access to traditional banking or financial services. The report also identified a number of inhibiting factors such as rising global unemployment and increased immigration controls by the government which will hold back the market until the recession is over.

Mobile money transfer will change the way people bank in parts of the world where banks are few and far between. 2010 will see massive expansion of these services especially in countries like Africa, India and Asia.

According to another research done by foreign consulting firm Edgar Dunn & Co. by 2012, 364 mn low income, unbanked people could use mobile financial services. Likewise the number of people without a bank account but with a mobile phone is estimated to grow from 1 bn to 1.7 bn. On the other hand Research firm Gartner predicts that money transfer and payment over the mobile phone are likely to be among the top10 most important mobile applications by 2012.

Especially in India, the future of mobile money transfer seems to be very promising. In the last few years, the phenomenal growth in mobile penetration and development of more advanced technologies has swept the landscape and offers and opportunity to companies like Paymate, mCheck, Obopay, etc to try to exploit the presence of mobile phone in every pocket to bring the un-banked population of the country into the Indian financial system.

It will not only enable greater penetration into under-banked and non banked areas but also contribute to the financial inclusion process. Also, inter state transfer of money using the mobile phone will save a lot of cost burden for internal migrants.

With all the leading telecom service providers like Bharti Airtel, BSNL, MTNL, Loop Mobile and top handset brands like Nokia, Motorola and LG keen to start the mobile money transfer service in India, this service is likely to take off in the Indian market.

arpitap@cybermedia.co.in