Juniper Research sees money transfer market nearly doubling to $3.5 trillion by 2024
Juniper Research said the market for digital domestic money transfers will nearly double over the next five years, soaring from $1.8 trillion in 2019 to $3.5 trillion in 2024.
Juniper found that expanded mobile use will drive the market, accounting for 86% of its total value by 2024.
The report found that in emerging markets, particularly Africa and the Middle East, digital money transfer has become a compelling alternative to cash, as mobile penetration of 84% has driven increased growth in the market.
"The high rate of mobile penetration across the world makes mobile a uniquely effective way to access potential users, particularly those that are unbanked," analyst Nick Maynard said in a company release. "This access will enable money transfer vendors to roll out a wealth of financial services, based around a core money transfer offering."
In the U.S., the report found that social payments are driving much of the growth in a business that is projected to rise by 280% over the next five years.
The report notes that Venmo has been a strong participant due to its social element. Facebook Pay has attempted to capitalize on this trend, however, regulatory concerns over Libra may dampen any attempt by Facebook to rapidly grow in the space.