Boston, MA, June 17, 2010 – A new report from Aite Group, LLC provides an update on the money transfer industry, including market data points and trends. Based on interviews with a select group of money transfer services providers operating in multiple corridors, Aite Group believes that the money transfer industry has reached a tipping point on the cusp of significant technology innovations. The report includes profiles of 12 firms at various stages of introducing new products or services in the money transfer industry.
After dropping by 7.1% in 2009 due to the recession, workers’ remittances are expected to grow a meager 1.0% in 2010, picking up to 4.6% by 2011. In the meantime, Aite Group expects a combination of factors to result in technology innovation that reaches levels never before seen in the remittance market. Pricing pressures will increasingly drive players to seek technology innovation to protect profit margins, while lower organic growth means that players will need to more aggressively develop new products to gain market share. New market entrants will increase the chances that someone hits on the right formula for a new service, and the loosening of exclusivity agreements will further expose distribution networks to new players.
“The money transfer industry has reached a tipping point,” says Gwenn Bézard, research director with Aite Group and author of this report. “After a decade of strong organic growth that gave money transfer companies breathing space in the middle of fierce pricing pressures, the great recession finally altered the dynamic. The prospect of continuing pricing pressures in a slow-growth market means that all participants will need to step up their game to succeed. Most likely, those forces will unleash technology innovation on an unprecedented scale.”
This 41-page Impact Report contains 11 figures and one table. It profiles Earthport, MasterCard, MoneyGram, Nexxo Financial, Nokia, Obopay, PayPal, Privier, Swift, Visa Inc., Wells Fargo, and Western Union. Clients of Aite Group's Retail Banking service can download the report.