When it comes to buying groceries, splitting dinner with a friends or paying for a cab, Americans are increasingly reaching for their smartphone over their wallets.
Recent research conducted by personal finance comparison website, finder.com, found that digital wallets are now the preferred method of transferring money for 57 percent of the population. However, this upward trend is only applicable when it comes to domestic transactions with the majority of international money transfers still conducted in person with cash (80 percent of these transactions according to the 2015 IMTC).
As more and more financial providers do way with physical locations and ATMs, making way for innovations that place mobile payments at the forefront, similar movements for international money transfers are likely much further down the track.
The reason for this can not attributed to industry size. Analysis by finder.com uncovered that 34 percent of Americans, or 84.1 million, make international money transfers. Last year alone saw an estimated $140.1 billion transferred out of the country, which is more than half the amount borrowed for mortgages and more than student loans and credit card debt combined.
Research indicates that trust, or lack thereof, amongst consumers could be playing a significant role in consumers feeling deterred from online international money transfers. Preliminary research conducted by finder.com found a huge number of dissatisfaction. Research revealed 96 percent are unhappy with their international money transfer provider with 80 percent of these feeling ‘ripped off’.
So what can providers do to improve consumer trust and satisfaction, and ultimately encourage them to make international money transfers on mobile devices?
Finder.com recently launched an extensive study into international money transfer providers – forming the inaugural finder Money Transfer Awards – to gain insights into those offering best practice across user experience, convenience, trust, speed, rates.
