{"id":6801,"date":"2017-07-06T08:00:34","date_gmt":"2017-07-06T15:00:34","guid":{"rendered":"http:\/\/www.trulioo.com\/?p=6801"},"modified":"2023-06-21T22:03:46","modified_gmt":"2023-06-21T22:03:46","slug":"mobile-money-transfer","status":"publish","type":"post","link":"https:\/\/www.trulioo.com\/blog\/kyc\/mobile-money-transfer","title":{"rendered":"Mobile Money Transfer \u2013 New Trends in International Remittances"},"content":{"rendered":"\n
\"Mobile<\/figure>\n\n\n\n

Republished: July 27, 2018, updated to reflect the latest industry news, trends and insights.<\/em><\/p>\n\n\n\n

Sending money back home is a driving force for many of the 200 million international migrant workers. They send a lot of money, totally over USD $600 billion according to a recent World Bank report<\/a> and an estimated $6.5 trillion in remittances will be sent<\/a> to low and middle-income countries between 2015 and 2030.<\/p>\n\n\n\n

Unfortunately, it\u2019s often a cumbersome, inefficient, costly process. Traditionally, the sender would have to get themselves to a money transfer retail location, provide accurate sending information, and then the receiver has to get themselves to a location to receive the money. Depending, on the location, the travel can end up being substantial in both time and money.<\/p>\n\n\n\n

Then, there is the delay as the process often takes up to 4 businesses days. It can take even longer, as each intermediary can follow a three-day good funds model, to ensure that the transaction is not fraudulent. Of course, if there is incorrect information or any other issues that can add even more time to the transfer.<\/p>\n\n\n\n

On top of that, fees and costly exchange rates take a big cut of the amount. For example, sending money to Africa costs almost ten percent of the transaction value and the global average is seven percent; the UN Sustainable Development Goals are three percent.<\/p>\n\n\n\n

While there are many reasons why international money transfer is problematic, one of the most significant is that it is still mainly a cash business. The sender brings in cash and the receiver gets cash out. Using cash slows the process down and adds cost.<\/p>\n\n\n\n

Mobile Money<\/h2>\n\n\n\n

One solution that has the potential to dramatically shake up the industry, improve performance and reduce fees is mobile money, transferring funds phone to phone. International mobile money transfers are forecast to grow<\/a> to 25 billion a year by 2018. While the growth is significant \u2014 67% up from 2015 \u2014 that represents only four percent of the total value of international remittance.<\/p>\n\n\n\n

There are many factors pointing to significant growth beyond that, or as PaymentsComplance states, \u201cmobile remittances are a promising market<\/em>.\u201d<\/p>\n\n\n\n