Thursday, August 18, 2022
Thursday, August 18, 2022
Home Business Mobile Remittance Will Exceed $10 Billion This Year, For The First Time

Mobile Remittance Will Exceed $10 Billion This Year, For The First Time

by Caroline Vutagwa
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For the first time this year,the Juniper Research says that, International remittance through mobile phones will exceed $10 billion
However, the Mobile Money Transfer & Remittances: Domestic & International Markets 2013-2018 report found that the cost and complexity of regulating cash transfer had led many service providers to focus exclusively on airtime topups.
This report says that only a few players were seeing significant traction on mobile; arguing that early service providers, many a times, had failed to establish a critical mass of mobile wallets in recipient markets, reducing the opportunity for inbound remittance.

However, the report claimed that regulatory complexity had been the primary obstacle, as the author of the report Dr Windsor Holden observed that: “Service providers must first obtain licences for each remittance corridor; they face due diligence and risk assessment checks, which may in turn oblige them to introduce additional mechanisms to address any issues which emerge. All these processes are time consuming and expensive.”

Even though the international cash remittance growth has been slow, transaction volumes have surged in the airtime topup market, where service providers are not required to obtain money licences. The report found that average annual airtime topups across key remittance corridors were in excess of average individual mobile spend levels in receiving countries, thereby covering recipient telecommunications bills for the year.

The report said nearly 400 million mobile phone users worldwide are expected to use their handsets for mobile money transfer by 2018; and in sub-Saharan Africa, mobile money taxes are threatening the growth of domestic money transfer services.

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