Mobile Money Transfers to Exceed $5 Billion by 2013

A new analysis by Juniper Research forecasts that Service Provider revenues, derived from mobile money transfer services and remittances, will exceed $5 billion globally by 2013 -- based on the commissions and charges that they will acquire from the gross value of money transactions made, both domestically within countries and internationally.

In the third report in its Mobile Payments Series, Juniper Research found that there is a significant opportunity for the providers and vendors of mobile money transfer services as the market takes off, beginning as soon as 2010. The study explores how mobile money transfer will transform the ability of the 'underbanked' population and migrant workers to make remittances, using their mobile phones as mobile wallets.

Report author Howard Wilcox provided some insight into this new market: "New services and trials are being announced almost every day. Judging from the response from users so far to services like M-PESA and SmartMoney, prospects for these services are excellent, both in developing and developed countries. For many people it has been costly and difficult for them to transfer money via existing services even to friends and family: using mobile phones solves the problem."

Highlights from the report include:

• Global annual gross transaction value (including the remittance itself) will grow over 10 times between 2009 and 2013.
• The opportunity for companies providing these new services is forecast to exceed $5bn by 2013.
• The top 3 regions (W. Europe, Africa and Middle East and Far East & China) will represent over 60% of the global mobile money transfer gross transaction value by 2013.

Posted to the site on 13th August 2008