Imagine every time you had to share funds with your friends, pay a bill, or complete an online purchase, you had to visit a bank or local store to finish payment.
That’s a horrible thought, isn’t it?
Now imagine what we would have done if such a situation existed amidst Covid-19 lockdown?
The pandemic showed us pretty clearly why online money transfer apps and companies are needed. Services like transfer of money from Venmo to PayPal, from PayPal to Cash App, and vice versa have become quite common nowadays and I can’t be more thankful!
However, the biggest question here is whether these applications and transfer systems are here for the long haul or not?
How Old Are Digital Money Transfer Options?
If you take a look just a decade back, you would realize that most of the leading firms involved in money transfers were only getting started. In fact, some of the prominent names of this age such as Western Union and TransferWise had not even surfaced.
It was then shocking how things changed!
Realizing the importance of digital money transfer, multiple applications were launched. In addition to this, several reliable banks introduced online banking options and some of them, such as Merrick Bank introduced helpful online credit card application and other amazing features.
Platforms like PayPal are actually newbies in this digital world but since they entered the game late, they had more exposure to latest technologies and were able to use this to their advantage.
Furthermore, the importance of money transfer via online apps and portals drastically increased during the current Covid-19 crisis.
Where Are the Numbers Headed?
As we mentioned above, the real question is whether these companies are here to stay or they would soon be replaced by other convenient options, if any?
A good look at the number and figurative trends show that the growth is expected to remain positive for a long period of time.
Almost 50% of these forums have experienced more than 13% to 15% growth in their digital revenue since 2020.
The initial studies had clearly miscalculated the impact of Covid-19 on the digital business. It was later, when strict lockdowns were imposed, that the underestimated numbers could actually be corrected.
Insight into the increase in use of online money transfer companies are an ongoing matter. Nonetheless, the trend provides no hint of slowing down any time soon.
The Other Side of the Picture
If the dependency on savings and using digital currency is to increase this much then what do we have to say about cash?
Well, it is obvious that its growth is expected to be stagnant for at least a few years following 2020. This may be devastating to some economies that were heavily dependent on such income flows.
It also should not come as a surprise that in some regions, conventional transactions i.e., with the use of cash touched level zero at one point in the mid-2020.
People expect the situation to go back to normal but this might not be possible over a course of some months. This automatically implies that the boost in digital payments and money transfers will have a long lasting impact.
The use of money transfer mobile applications, websites and online accounts that allow customers to send/receive money as well as digital banking system is definitely here to stay.
However, these companies and firms have to weigh the factors that would eventually determine how successfully they are able to keep the customers who chose them during the days of lockdown.
Pricing for digital transfers needs to be cheap with systems updated on a regular basis. Similarly, one must be open to innovation at all times. Consumer behavior can give a good idea of what customers are looking for and how the services could be improved in each money transfer sector.