The global digital remittance market size reached $19.65 bln in 2022, according to Grand View Research. It’s projected to grow at a CAGR of 15.6% from 2023 to 2030. As the volume of international money transfers grows, so does the demand of users for convenient and secure remittance solutions. Insider Intelligence revealed that 97% of millennials prefer mobile banking.
International money transfer apps allow customers to save money on fees and exchange rates, as such solutions often offer better terms than banks and other financial institutions. For example, transferring money through an app takes a few minutes, while international bank transfers take one or two days. If we’re talking about weak currencies, the recipient can get his/her money even in five days.
Why Does Your Business Need an International Money Transfer App?
The international remittance app will be useful not only for individuals, including migrants, travelers, freelancers, and others. It offers many advantages to businesses that also want to make fast transactions while keeping costs as low as possible.
First of all, a corporate international money transfer app allows companies to attract customers from all over the world, which can lead to increased sales and a larger customer base. Customers need money transfer services. According to Statista, transaction value in the digital remittances segment is expected to amount to $55.68 bn in 2022 with an annual growth rate of 7.24%. Customers will enjoy the ability to make international payments quickly and conveniently, which will increase their satisfaction.
As we noted above, when using international money transfer apps, the transfer fees can be significantly reduced, allowing businesses to reduce their financial transaction costs. Since remittance applications typically provide a high level of security for financial transactions, implementing such a solution will increase customer confidence and reduce the risk of fraud. The Cisco Consumer Privacy Survey shows that 80% of users want to protect their privacy and personal data.
Overall, implementing an international money transfer app can help your business become more competitive in the global marketplace, which, in turn, can lead to increased revenues and profits. Competitive ability is the key to success, which is confirmed by McKinsey’s list of rules that help companies make progress. Putting competitive advantage first is rule number 1 in this list.
What Are Basic Technical Requirements for an International Money Transfer App?
Sensor Tower found that users installed 35 mln digital payment and money transfer apps in Q2 2020. These numbers show that people want these kinds of solutions. If you want consumers to download and use your product, it has to meet certain criteria. Let’s take a look at the basic technical requirements for international money transfer apps. They include:
Security
According to the survey conducted by Visual Objects, almost 69% of users are concerned about the security of digital payment platforms. As far as finance is concerned, a remittance app must be protected from unauthorized access, hacking, and data theft. This requires the use of cryptography, user authentication, and protection of transmitted data using SSL encryption.
Integration with payment gateways
The app must communicate securely with payment gateways and make international money transfers through them. This means that your solution must be compatible with and integrate with various payment gateways.
A payment gateway is a technological service that ensures the transfer of information between a payment system (for example, a bank, a payment card, or an electronic wallet) and a merchant who accepts payment from a customer. The gateway should be chosen depending on the needs of your business.
There are the following types of payment gateways:
- Bank card gateways that support payments made with credit or debit cards issued by a bank (e.g., VISA, Mastercard, American Express, Discover, etc.).
- E-wallet gateways that process payments made with e-wallets, such as PayPal, Skrill, WebMoney, and others.
- Internet banking gateways that support payments made through online banking, that is, payments that are made through a banking website or app (e.g., Citibank, Chase, Wells Fargo, and others).
- Payment system gateways that process payments made using payment systems, such as Alipay, WeChat Pay, and others.
- Bitcoin gateways that allow you to make payments using Bitcoin (e.g., BitPay, Coinbase, etc.).
- Mobile commerce gateways that process payments made through mobile apps and mobile websites (e.g., Google Wallet, Apple Pay, Samsung Pay, etc.).
Accessibility
The app must be accessible to users on different devices and operating systems. Your product must also be multilingual and support different currencies and payment methods. As of November 2022, Android is the world’s most-used operating system, with a share of 42% of the global market. It’s followed by Windows at 30%, Apple iOS at 18%, macOS at 6%, and Linux at 1.0%.
Ease of use
The app should be easy to use and have an intuitive interface that allows users to make international money transfers easily. It should be able to save a user profile and save payment card information, making the process of transferring money faster and more convenient.
Scalability
The application must be able to process large amounts of data and provide scalability in case the number of users grows. In addition, it must be able to process transactions in real-time, which will ensure maximum speed of transfers.
Integration with third-party services
The app must integrate with third-party services, such as online stores or e-commerce systems, to provide users with a convenient way to pay for purchases or services.
Popular International Money Transfer Apps: Why Are They Popular?
Today, there are many applications for international money transfers. Let’s take a look at the most popular ones.
PayPal is one of the most well-known international money transfer applications, allowing users to send and receive payments in different currencies. According to GlobalData, the total payments for PayPal in Q1 2022 amounted to $323 bln. Customers appreciate it for security. If PayPal specialists see unusual activity in your account, they may block it until the circumstances are clarified. In this case, they usually contact the account holder directly and ask to confirm the dubious transaction. However, PayPal charges high fees for international transfers. They range from $2.99 to $4.99, plus 2.9% of the transaction amount and an additional fee based on location.
Wise is another popular app that offers low fees for international money transfers. According to Google Play, the app was downloaded by more than 10 million users in 170 countries. Its services are most popular among travelers, immigrants, and freelancers. The Wise mobile app has a high level of protection against hackers, and financial transactions are carefully controlled.
Skrill is another well-known British service that allows users to send and receive money in different currencies and make online payments. The service allows you to make free payments in online stores, receive money from other users, and doesn’t charge an account maintenance fee, but charges a commission for sending money to users with Skriller status, which is 2.99%. Skrill is proud of its responsive customer service. Users can get answers to all their questions almost instantly.
Revolut provides international money transfer services, as well as e-wallet and bank card functionality to pay for goods and services. It has been operating since 2015, and during this time it has been used by 3.5 million people. In 2018, the service received a banking license from the European Central Bank. The Revolut mobile app has one of the best designs among the competitors.
How to Create an International Money Transfer App?
Creating an international remittance application for your business can be a complex and time-consuming process. We’ve prepared a short guide to help you start the development process.
Step 1: Define goals and requirements
Determine what tasks your international money transfer application will perform. Determine the features and capabilities that will be needed to ensure secure and efficient money transfers. Be sure to define the technical requirements and make sure they meet your needs.
Step 2: Investigate a market
Do market research and study competitors that already have international money transfer applications. Identify their advantages and disadvantages, and find out what makes your product unique.
Step 3: Set up communication with payment gateways
Contact payment gateway providers that allow your customers to make international money transfers. Find out about their services, rates, and requirements.
Step 4: Develop design and functionality
Develop a prototype application and define its design, functionality, and user interface. Make sure it’s easy to use and clear for your customers.
Step 5: Test the application
Test the app to make sure that it works without errors and meets all requirements. Test it on different platforms and devices.
Step 6: Launch the application
Publish your international money transfer app in the app stores and start promoting it. Evaluate user response and conduct marketing campaigns to increase downloads and usage of the app. Keep in mind that users should have access to customer support to get help in case of problems with the app or the payment process.
Finally, it’s important to remember that creating an international money transfer application is a process that requires constant updating and improvement to keep it relevant to the changing needs of your business and customers.
Final Word
In general, an international money transfer app should be secure, user-friendly, scalable, and capable of integration with third-party services. It can become a useful tool for your business that will help you increase sales, speed up the payment process, reduce commission costs, improve the security of financial transactions, increase customer satisfaction, and improve the competitiveness of your business.
At Elinext, we developed a great number of finance solutions, such as a High-Load Online Payment System or Application For Integration With Financial Organizations. Our specialists have enough experience and expertise to help you create a remittance app that will bring your business to a new level.
