Digital Domestic Money Transfer to grow by 50% by 2026
Digital domestic money transfer transactions will boom globally by 2026, surpassing the volume of 300 billion operations, from 207 billion in 2022.
According to a new study by Juniper Research, the digitisation of cash-based payments, driven by superapps, is the key driver of this transformation.
Superapps do more than “just” digitising the transaction: they power it up with information, allowing users to send messages and access other services, so that the payment becomes just one component of a much bigger exchange of information and value.
Where domestic money transfer will skyrocket
Three countries are expected to lead this growth. China, the United States and India are to account for just under 74% of global digital domestic money transfer transactions in 2026.
These three countries have in common the integration of payments into social platforms. WeChat Pay in China, and Venmo in the United States, are two good examples of how social payments can drive the growth of domestic money transfer.
Payment vendors should therefore identify the most popular social platforms in each country, developing partnerships to enable social payments. And keep monitoring the situation and the trends, as the popularity of social media has always been quite volatile.
LATAM and the EU are two promising markets
According to Juniper Research, Latin America and West Europe have the strongest forecast growth rates.
The competitive scenario is however quite different from one country to the other.
Superapps are very popular in Asia, for example, but they have to meet stricter compliance requirements in Europe, if they want to embed financial and/or payment services.
Vendors should also pay attention to all possible use cases to identify the most useful partnerships.
There are many possible reasons for sending or receiving money to/from another internet user. Peer to peer transfers are quite common between friends or colleagues who need to split an expense, for example.
But money transfers can also ease the user experience on online marketplaces, allowing merchants to receive real time payments with a relatively cheap fee, usually lower than credit cards’.