Mobile money is a safe and affordable option for international remittance for millions of migrants worldwide. This is according to a report recently issued by the GSMA entitled, ‘Driving a Price Revolution: Mobile Money in International Remittances’. The report looks at the impact of mobile money on reducing the cost of international remittances, it highlighted a significant reduction of transfer costs due to the mobile money industry’s strategic positioning in this landscape.
“The cost of sending international remittances with mobile money is, on average, more than 50 per cent less expensive than using global money transfer operators (MTOs).”
In leveraging their existing infrastructure, while capturing smaller remittance values than their traditional counterparts, mobile money operators remain highly-competitive in this quickly evolving market. International transfers now represent the fastest-growing segment of mobile money services.
Here are the GSMA’s key findings:
- Mobile money is particularly competitive for low value transactions.
- Mobile money is contributing towards the United Nations Sustainable Development Goal, number 10, to reduce inequality within and among countries.
- Mobile money is increasing competition, which is driving down the price of remittance services.
- Mobile money-enabled international remittances are contributing to broader financial inclusion and financial integrity objectives.