The latest trend in money transfer is the use of Digital Remittances, Wallets, and Money Transfer services that can make the process more convenient and faster for the recipient. However, several factors must be considered before choosing exemplary service. Some of these include the cost of living, how the money will be transferred and if you can trust the service provider.
Mobile wallets
The latest trend in Ria Money Transfer is mobile wallets. These apps allow users to make payments and store credit and debit card information. They are installed on smartphones.
Digital wallets can be used to pay online and in-store. Apple Pay, Samsung Pay, and Google Pay are the most popular ones. In addition, some companies, such as Samsung, offer a smartwatch with their wallet app.
Mobile wallets have many benefits for both businesses and consumers. They can create brand loyalty, incentivize specific behaviors, and drive app adoption. However, the market is crowded. This makes it essential for players to differentiate themselves.
The use of digital wallets has grown significantly in the last five years. In addition to payments, consumers can also access other services, including health and wellness, gaming, and travel.
Several Latin American countries are working to reduce the technological gap in their financial systems. For example, Colombia’s government started distributing emergency benefits to mobile wallets in March 2020.
Digital remittances
In many countries, remittances represent an essential aspect of economic development. However, money transfers can be complicated. They can involve many intermediaries, long remittance times for receivers, and unusually high fees.
Digital remittances are becoming more popular. As a result, the market for digital remittances is predicted to increase by 14.7% CAGR over the next five years, reaching USD 39.8 Billion in 2028.
Digital remittances have the potential to boost financial inclusion, especially for women. These services have already proven to be helpful in sub-Saharan Africa. Remittances are sent through savings accounts, credit cards, and mobile wallets.
Women who receive remittances through digital channels report higher financial health than those who accept them through cash. Female digital remittance recipients also report increased use of other financial services.
These transactions are expected to grow due to increased smartphone penetration and the growing popularity of digital access points. In addition, digital remittances allow users to send money to family members and friends. This can help people manage their finances and make their lives easier.
Cost-of-living expenses
This year’s tally of the cost of living is an excellent time to check your bank account to see if your money is being spent wisely. One of the best ways to do this is to take stock of your expenses using a reputable online tool or app. The following are just a few suggestions that should help you achieve your goals:
- Take a close look at your credit card statements for fraudulent charges.
- Consider if your bank accounts are in sync with each other.
- Check your mail before you leave your home or office.
Of course, you must also be careful about your privacy and online banking security. But that’s the best way to guarantee that your hard-earned money is safe.
COVID-19
The COVID-19 pandemic has crippled the economies of fragile states and rich countries alike. It has fueled the growth of digital payments and accelerated the adoption of contactless payment instruments. But it also poses a threat to the remittance industry.
Nearly 80% of adults have a bank account, but a significant proportion needs to use it to make cash transfers. However, a lack of confidence in the financial services offered by banks could deter people from opening accounts.
The money transfer industry has been interestingly debated in recent years. One of the main issues revolves around the need for more identity documents for mobile money users. Increasing the number of banked adults with access to digital platforms could help save the remittance industry. However, increasing account ownership requires a product tailored to the specific needs of consumers and an enforced consumer protection framework.
The latest Red Book Statistics show that consumers are shifting towards digital payments and away from physical cash. As a result, remittances are likely to take a hit.
