Global digital domestic money transfer transactions are poised for significant growth, projected to exceed 300 billion operations by 2026, up from 207 billion in 2022. This upsurge is primarily due to the digitization of cash-based payments, spearheaded by the rise of superapps, according to a study by Juniper Research.
Superapps transcend mere transaction digitization; they enrich the process with information, merging the ability to send messages and access various services. This integration means that payments become part of a broader exchange of information and value.
The growth surge is expected to be led by three countries: China, the United States, and India, collectively accounting for just under 74% of the global digital domestic money transfer transactions in 2026. These countries share a common feature: the integration of payment functionalities within social platforms, exemplified by WeChat Pay in China and Venmo in the United States. These platforms illustrate the potential of social payments in fostering domestic money transfer growth.
Payment providers are advised to identify prominent social platforms in each target country and explore partnerships to facilitate social payments, while staying abreast of the ever-changing popularity of social media platforms.
Promising Markets: LATAM and the EU
Juniper Research identifies Latin America and Western Europe as regions with strong growth forecasts. However, the competitive landscape varies significantly across countries. Superapps, while popular in Asia, face rigorous compliance requirements in Europe when integrating financial and/or payment services.
Providers should consider all potential use cases to pinpoint the most beneficial partnerships. Peer-to-peer transfers, for example, are common among friends or colleagues sharing expenses. Additionally, money transfers can enhance user experience on online marketplaces by enabling merchants to receive real-time payments at costs typically lower than those associated with credit card transactions.