The international remittance market is expected to reach $610 billion this year, says World Bank while according to customer experience solutions provider Amdocs, it represents an attractive, fast emerging revenue stream for mobile financial services providers.
In a study conducted by Juniper Research for Amdocs, a majority of respondents (82%) using services currently offered by existing players such as money transfer operators (MTOs) and banks, are dissatisfied and that 83% of respondents in developed countries such as United States, United Kingdom, and Germany are willing to send money internationally using mobile money.
The finding points out at strong consumer interest in an international mobile money offering if priced at $5 per transaction or less.
It reveals that 41% of those respondents willing to use a mobile international remittance service say that they would be prepared to pay up to $4 per transaction, with a further 21% prepared to pay up to $5.
47% of respondents cite speed of money transfer as a major challenge with their current provider, including 48% of those who send via MTOs, 49% of those who prefer a bank transfer and 46 percent who use the Internet.
“The survey demonstrate a clear opportunity for international mobile money services to disrupt the money transfer landscape and provide much-needed competition in this arena,” Windsor Holden, head of forecasting and consultancy at Juniper Research said.