It was apparent that mobile cash transfer was set to increase with approximately 150% as of 2015. This was according to research done by Juniper Research. This percentage translated to a whopping thirteen billion dollars. Some social media companies were already witnessing a significant increase in the uptake of mobile money.
The 2015-2020 research showed an increase in traffic of one billion dollars in Venmo, every quarter. Other leaders in the social media space were introducing an innovative solution to mobile money for their users.
Snapchat, a multimedia app, signed a deal with Square to create a P2P offering, at a time when the Social Media giant, Facebook, was launching a nationwide service. While this was happening in the US, China’s Alipay and WeChat were experiencing a significant rise in the P2P traffic in February of 2015. This spike was not accidental. The companies employed a gifting strategy dubbed the ‘Red Envelop.’
According to the research, something interesting was also happening in the developing market with airtime refill, micro-insurance, micro-lending, and savings. Despite airtime refill remaining accounting for a lot of the recorded transactions, there was a growth in provision and uptake of these other services.
The argument presented by the research informed investors that network service providers were well adapted to gather and present crucial information for risk assessment on users. These data include a client’s past top-up data, location history, and social media activity. These data could be analyzed to provide a basis for issuing essential financial service and credit scores.
Dr Windsor, through research, marvelled at the possibilities offered through mobile financial transactions. According to Windsor, the blessing of microinsurance transactions carried out through the mobile is in protecting the unbanked and less financially endowed persons in the society. This essential service protects farmers from losing their livelihoods.