Money Transfer App Market Size and Trends

Global money transfer app market is estimated to be valued at US$ 20.15 Bn in 2024 and is expected to reach US$ 65.38 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 18.3% from 2024 to 2031.

Money Transfer App Market Key Factors

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Transferring money through mobile applications has become a preferred method among consumers due to the ease and convenience offered as compared to traditional modes of money transfer. Rising smartphone penetration coupled with growing adoption of mobile wallets and online banking can boost demand for money transfer apps. Moreover, shifting preference of millennials from cash to digital payments can drive the money transfer app market growth globally. Wide coverage areas and competitive pricing offered by various money transfer apps can also drive the market growth.

Increased migration and remittances

Rising levels of immigration across the world can drive the global money transfer app market growth. As more people move to foreign countries in search of better employment and lifestyle opportunities, there has been increase in need to send money to their families and relatives. According to estimates, more than 281 million international migrants live outside their country of birth or citizenship currently.

Immigrant population rely on digital money transfer services to send portions of their earnings regularly to their home countries as remittances. These remittance flows have become a major source of income for many developing and underdeveloped economies worldwide. Countries such as India, China, Mexico, Philippines and several others in Asia and Africa receive billions of dollars in remittances annually from their expat workers and students living abroad.

Traditional banking wire transfers and money order services are often quite expensive and inefficient for smaller remittance amounts. Thus, digital money transfer applications are used widely for transferring money globally. Apps like Wise, Remitly, Paypal, WorldRemit and others offer seamless, low cost and real time money transfer services globally. Migrants prefer to use these apps on their smartphones instead of visiting money transfer agent locations.

For instance, in August 2021, WorldRemit, a leading digital cross-border payments company, launched its money transfer services in Malaysia. This expansion allows WorldRemit customers to send money from Malaysia, in addition to 50 other countries including the U.K. and the U.S., to over 130 destinations worldwide. Depending on the recipient's location, senders can choose from various payout options such as bank deposits, payments to mobile wallets, cash pick-up, and mobile airtime top-up.

Money Transfer App Market Concentration By Players

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Ease of use and connectivity

Simplicity and convenience offered by these digital services as compared to traditional options can drive the market growth. Apps nowadays offer very intuitive, hassle-free user interfaces that allow anyone with a smartphone to send funds to another person internationally within minutes. Complexities around currency exchange rates and transfer fees are automatically handled in the backend, thus, providing users an seamless experience.

Rising internet and smartphone penetration around the world. Even developing markets are witnessing massive growth in connectivity. This has enabled more people globally to access and utilize online money transfer apps on a regular basis.