Global Consumer Money Transfer Market

Transcription

1 A Datamonitor brief timely Global Consumer Money Transfer Market Publication Date: May-04 Product Code: Reacting to the latest news breaking in your industry focused Hundreds of hours of analyst time distilled into a few pages primary research The Global Consumer Money Transfer Market has been growing steadily throughout the years. However, an upsurge in labor migration has further impacted on the market and opened the door to new opportunities. New providers are entering the market and new money transfer services are emerging. In what direction will the market move in the next four years? This briefing provides the answers. Unique survey data and interview results thought-provoking For details of all Datamonitor Financial Services briefs, go to: Fresh opinions and out-of-the-box thinking

2 timely Reacting to the latest news breaking in your industry Scope and coverage of the brief Focuses on person-to-person international money transfer transactions Concentrates on formal money transfer instruments Looks at inter-regional transfers only. Intra-regional transfers are excluded Key findings and brief highlights In May 2004, ten countries from Central and Eastern Europe will join the EU. Many will not be granted freedom of movement of persons for work purposes immediately. However, it is expected that after the end of the transition period workers from these new EU-countries will positively impact on the migrant population in the other EU-countries. PayPal is still a mainly US focused solution. The company is based in California, the vast majority of its customers can be found in the US and while individuals in almost 40 countries can open a PayPal account in many countries, many users cannot withdraw funds to a bank account. Yahoo! PayDirect has been in existence for several years but was never the first choice for online person-to-person payments. PayPal is by far the leader. Although Yahoo! PayDirect International offers extra features over PayPal, there is the issue whether Yahoo! brand is strong enough to convince customers to transfer significant sums of money. Reasons to buy this brief Provides you with a thorough understanding of how the market works Gives you an insight in the future direction of the market and hence assists you in designing your strategic planning Presents you information on the size of the flow of remittances between regions and helps you determine where the opportunities lie Contact us... From Asia-Pacific: tel: fax: [email protected]

3 focused Table of contents Hundreds of hours of analyst time distilled into a few pages ABOUT DATAMONITOR INTRODUCTION SIZING THE GLOBAL CONSUMER MONEY TRANSFER MARKET Market sizing - Data is grouped under seven regions - The formal global consumer money transfer market accounted for US$57.6 billion in Inflows and outflows of remittances per region Asia Pacific is the biggest recipient region A higher level of remittances is being sent from Western Europe and North America to other regions - Share of remittance inflows and outflows per region Exclusions - Informal Money Transfer Systems The 'Hawala' system is the most widely used IMTS The size of the IMTS market is estimated to be worth more than US$100 billion The drivers behind the existence of IMTS Drivers of the global consumer transfer money market - Migrant population - GDP of the hosting country and flexibility of the labor market - The cost of living in the hosting country - Regulatory framework The migrant population in Western Europe is expected to increase with the accession of ten Eastern and Central European countries into the EU - Expatriates - Foreign students - Political stability Summary MONEY TRANSFER INSTRUMENTS Classification of money transfer instruments - Money transfer facilitators The process Fees charged by such providers are high Examples of cash collection money transfer providers BBVA: capitalizing on the Latin American market through an established presence - Dinero Express's money transfer services are rather basic - Dinero Express's expansion in Spain has accelerated with its strategic partnership with Telefonica -...whereas expansion in the Latin American market was facilitated by the predominent presence of BBVA's retail bank network in this region - BBVA's target is to occupy at least 20 per cent of the Latin American migrant population in Spain by the end of BBVA's wider strategy is to crosssell its banking services to migrants - Datamonitor Cards Team views Conventional banking money transfer systems - International drafts and money orders - Bank wires Other providers of wire services Emerging consumer money transfer instruments - Online wallets PayPal: global or not? - PayPal's money transfer services - Customers have a choice of five currencies - PayPal is considered as a global money transfer service provider but reality differs - PayPal practises a differentiated price strategy - Datamonitor Cards Team view Moneybookers: an online provider with potential - How does Moneybookers operate? - Option one - recipient has an online account with Moneybookers Contact us... From Asia-Pacific: tel: fax: [email protected]

4 primary research Unique survey data and interview results - Option two - recipient does not have an online account with Moneybookers - Moneybookers has witnessed considerable expansion in its customer base - Moneybookers's strengths are multi-fold - Datamonitor Cards Team view - ATM withdrawal Yahoo! PayDirect International: providing conveniency to customers? - Consumers have two options to send money - Yahoo! has chosen its money transfer systems based on conveniency for the consumer - Datamonitor Cards Team view Benchmarking money transfer instruments Summary FORECASTING THE GLOBAL CONSUMER MONEY TRANSFER MARKET GDP is a key macro-economic factor when forecasting inflows and outflows of remittance - Soft factors Exclusion The global consumer money transfer market will reach US$69.8 billion in The thought process behind the forecast Conclusions - Traditional providers are losing ground with the emergence of new money transfer instruments - The remittance market is not only a profitable market but it also provides further opportunities APPENDIX Table 4: Examples of providers of wire money transfer services, other than banks Table 5: Examples of international online account-based money transfer providers Table 6: Fees charged by PayPal Table 7: Fees charged by moneybookers Table 8: Examples of international online account-based money transfer providers that offer ATM withdrawal services Table 9: A benchmarking exercise for money transfer instruments Table 10: The global consumer money transfer market, Table 11: List of countries included by region (Table 1 of 2) Table 13: The global money transfer market, Table 14: The global money transfer market split by regions, Table 15: The forecasted global consumer money transfer split by regions, Table 16: Forecasted share of inflows and outflows by region, 2004 to 2007 LIST OF FIGURES Figure 1: The global consumer money transfer market represented $57.6 billion in 2003 Figure 2: Western Europe is the biggest remittance sender, whereas Asia Pacific is the biggest recipient, Figure 3: The 'Hawala' system Figure 4: The thought process behind Datamonitor's forecast Figure 5: The global consumer money transfer market, Figure 6: Forecasted inflows by regions, Figure 7: Forecasted outflows by regions, Figure 8: Datamonitor's core consulting capabilities LIST OF TABLES Table 1: Share of inflows and outflows by region, Table 2: Examples of cash collection money transfer providers Table 3: Examples of providers of international drafts and money services, other than banks Contact us... From Asia-Pacific: tel: fax: [email protected]

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