Mobile Money Catching On

November 16

A new report from the global high-tech consultancy Juniper Research predicts the international market for mobile money transfer services (ie: remittances initiated using mobile phones) will top $65 billion by 2014, with the bulk of that money being sent back home by migrant workers based in developed countries.

The report -- Mobile Money Transfer & Remittances: Markets, Forecasts & Strategies: 2009-2014 -- however, also identifies several inhibiting factors that could hold the market back. These include incresed immigration controls and rising global unemployment.

"Our view is very clear -- in the long term this market proposition is highly attractive," said Howard Wilcox, a senior analyst at Juniper. "Mobile remittance offers a speedy, cost-effective and convenient channel for people to send money regularly to friends and family at home, who themselves may not have bank accounts."

In a related report, released last month, Juniper predicted that more than 500 million folks, worldwide, will be using mobile money services by 2014. The largest group  of users will be in developing countries, the consultance reported.

Juniper's latest report also identifies new and emerging trends in microcredits, savings accounts and insurance payments using mobile devices. These sophisticated financial services are designed to meet the needs of individuals in developing countries where accvess to financial services is very limited.

The report includes several additional findings. Among them:

• Most remittances between now and 2014 will originate in the United States and Western Europe
• The market for international transactions is smaller than is the market for domestic remittances, but international amounts tend to be higher and payments are more regular

White papers detailing these and other reports are available on the Juniper Research Web site.

Americans borrow about $40 billion a year from payday lenders

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