When India witnessed demonetization in November 2016; Paytm registered 5 million new users in just two weeks. This number is more than the population of Canada! Mobiqwik, another money transfer app, witnessed 40% increment in app downloads post demonetization. These factors clearly indicate the shifting trend towards a cashless economy. Money transfer, a major financial process, will witness a significant impact in the near future.
Now, what money transfer startups can do to strengthen their presence in the market? Do they have a chance to gain a sizeable market share? Let us explore the possibilities.
Development in Financial Technology (FinTech)
Due to government initiatives, it is that financial technology is experiencing a tremendous development. In all the financial institutions like banks, FinTech will play a major role in the future. With the advancement in technology, a number of quick money transfer startups are coming into the limelight.
The technological revolution is helpful in creating user-friendly applications that facilitate easy money transfer operations. Moreover, it results in faster processing. This means the money will be transferred in a short span of time. Moreover, there is a transparency in the money transfer operation.
Growth in the number of Smartphone Users
According to Statistica, Smartphone users in India will be around 340.2 million. This is a whopping number which will keep on increasing every day. With such a huge number of Smartphone users, it becomes obvious to tap the potential of online money transfer. The money transfer startups have a lucrative opportunity in front of them.
Along with this, awareness about the benefits of online money transfer is also triggering the money transfer startup culture in the country.
According to the industry reports, internet users in India will be around 450 million by June 2017. Now, we haven’t talked about the 750 million potential customers in rural India. You can estimate the money transfer startup market size in the near future. With advancement in technology and people willing to accept it, traditional money transfer methods will decline over time. This is a perfect opportunity for money transfer startups to chalk out astrategy for market expansion.
Money transfer operation via banks is a cumbersome process. If you get a better option, you would definitely opt for it. In this context, money transfer startups can tap the opportunity to provide hassle-free money transfer operations. Moreover, the customer need not visit the office or center. The money transfer procedure can be completed from the comfort of their homes. The startups can build their customer base by offering simplified procedures for money transfer.
The service charges can significantly impact a customer’s financial decision. A customer always opts for the cost-effective and reliable money transfer services. By incorporating these factors, money transfer startups can strengthen their presence in the money transfer market. The service costs are relatively low for online money transfer and hence, thecustomer is willing to adopt newer methods for money transfer.
As evident by the staggering facts in favor of money transfer market, there is a high potential for tapping the market share in the money transfer market. The startups should aim at providing user-friendly solutions for money transfer. The current market environment is favorable for making a wise and bold move.