The money transfer market continues to expand, especially thanks to the transfer of funds, which can be done online on both computer and mobile and can therefore be done no matter where you are without going to a desk. If this market has been dominated by a few players for a long time, new challengers are coming in and competing with them, especially by offering lower costs and different solutions.
a very promising market
It must be said that this market is very promising since in 2018, the global volume of money transfer (between individuals) already represents 689 billion dollars as it meets the real need of daily life and is suitable for all situations. suited to. It is particularly dynamic in developing countries, as according to a World Bank report, 529 billion were destined for residents of developing countries, although the rates were quite prohibitive as they averaged around 7% and in some parts of Africa reached 10%. can be more than %. However, banks may charge even more. It should be noted that more than €19 billion is sent abroad from France alone. year, especially for families.
Developing New Solutions: Prepaid Cards
The growth of the market can be explained first of all by the advent of new methods of money transfer. We’ll be looking specifically at prepaid cards, which have evolved a lot and have certain advantages. They are actually payment cards (Visa or Mastercard) that only need to be deposited through recharge which can be bought online or sometimes at tobacconists. Hence these are not linked to a bank and act as a “wallet” or monetary wallet. Thus you can make your purchases within the limit available on the card and anonymously as the card is not linked to a bank account.
Above all, it allows purchases that are not only online or withdrawing money, which can be useful for the unbanked and as we can see, there are a lot of them. This system is widely used for Send money to your loved ones, especially those abroad, and thus make it possible to meet urgent needs, among other things. It is enough that the person receiving the money has a card. In general, a person buys the card, gives it (for example to his cousin abroad) and recharges it periodically, typically a PCS recharge, according to the recipient’s needs. It helps to reassure the person who is in a distant land and reassures himself/herself knowing that in case of difficulty the person will not be short of money.
advent of digital as a solution
Digital is becoming increasingly important as compared to cash transfers. It should be noted that according to Business Insider Intelligence, which published a study on the World Bank blog, digital money transfers should account for 50% of the total volume next year, compared to 35% in 2018.
In a context where students are studying abroad or employees who have specific missions, it is clear that digital money transfer has become an important solution.