According to the study carried out by Juniper Research nearly USD 55 billion in international remittances are expected to be enabled via mobile devices in 2016, up from less than USD 12 billion in 2011.
Furthermore, the report has shown that transaction volumes are highest in North America as a result of mobile remittances sent across established migration corridors such as the US-Mexico, the Philippines and India. Many intra-regional transfers occur across Africa and the Middle East, as migrant workers send money back home from foreign countries.
According to the report, substantial inter/intra-regional activity within Western Europe is set to make the region account for the largest remittance volumes by 2014.
Additionally, the report has shown that there is need for regulatory engagement as service deployments are expected to gain impetus with the increased utilisation of multilateral hubs between MNOs and third parties, which connect both sending and receiving channels on a single platform. This in turn reduces the time to deployment, as each MNO is required to connect to a hub only once to send/receive remittances and does not have to spend additional time on agreements.
Finally, the report has found that service providers should not only introduce lower commission rates and flexible pricing structures to generate greater service uptake but also use highly trained local agent networks to attract potential service users.
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