The volume of domestic money transfers via mobiles will exceed 203 billion in 2024, up from 130 billion in 2019, driven by peer-to-peer (P2P) payments, and will account for 80 per cent of all domestic transfers in 2024.

This is according to Juniper Research, which pointed out that in developed markets, digital wallets have made P2P payments far simpler, with services including PayPal, Venmo and Cash App enabling low cost, fast and secure payments for a rapidly growing number of users.

In developing markets, mobile money provided by network operators is a key enabler of financial inclusion; enabling the unbanked to enter into the wider digital economy.

The analysis suggested that the rise in social payments is driving growth in the mobile P2P channel.

Payments via Venmo have a strong social element, which has boosted its popularity with Millennials, while the introduction of the Libra cryptocurrency by Facebook will further leverage social features, boosting the potential of social payments in a vast addressable market.

Research author Nick Maynard explained: “Social payments are highly appealing to younger users, as they enable simple and effective digital payments to displace cash.

“However, data security concerns about mixing payments and social networks will impact consumer attitudes among older users,” he added.

Largely due to the ‘red envelope’ gifting tradition during the Chinese New Year, Chinese transactions will account for 68 per cent of the total volume of domestic mobile transfers in 2019.

Alipay and WeChat Pay have become a crucial part of the process and will drive future growth in this market, but Juniper Research stated that China’s share of the overall transaction volume will gradually fall; accounting for a reduced 57 per cent by 2024.

Growth is fastest in Africa, while operator-driven mobile money solutions are boosting financial inclusion at a rapid rate.

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