Posted by Gautam Begde, Lead Consultant, Oracle Practice, Infosys
Money transfer is a large industry that generates significant business revenue. A World Bank survey stated that over US $580 billion was remitted globally in 2014 and this value is expected to reach US $600 billion by 2017.
Traditionally, the money transfer industry has been dominated by brick-and-mortar stores that offer money transfer services through agents. However, the proliferation of the Internet and smart phones has created a new breed of digital money transfer providers that are changing the industry's competitive landscape. These players can provide money transfer services at lower average cost and much faster. These trends, coupled with emerging business models that cater to untapped market segments, are disrupting the money transfer industry and becoming a formidable challenge for existing companies. Let us take a look at two of these new business models: