Will money transfer operators be disrupted by Facebook’s Novi?
1 Answer
Faisal Khan
Answered 03/Jun/2020
This is an easy one to predict.
A gradual transformation is happening.
I believe that money transfer as a business is like the VHS videocassette rental business, we went from renting videos to streaming. What changed was not only the technology but the way the service was provisioned as well (atoms to electrons, physical cassettes to on-demand streaming services). It still relied on a service provider, but the delivery model changed.
The same can be said for the money transfer industry. The service providers will change and the delivery model will change. Existing, individual money transfer operators would most likely go out of business in the next 10–15 years (if not sooner).
Newer types of money transfer operators will take their place, which are centralized, have a larger network (greater outreach), and a product/service delivery mechanism that is not currently entertained.
I did a short video on this subject which you can watch below.