A 2018 World Bank report noted that roughly $613 billion worth of banking transactions were executed across global borders. If you were to base your opinion on that stat alone, you'd conclude that the market for global money transfers is massive. Also, rest assured that the only thing we know about this industry isn't its size; in fact, we can also tell you that it is growing at a rapid pace, despite the challenges it faces. What problems do you ask? There are several, and they are all significant.

We are sure a lot of you, if not all, will agree with us that security is one of the biggest concerns for any digital entity. Then there's the gig economy, which has given rise to its set of problems, including making sure that people pay all relevant and applicable taxes. We'll explain -- say a US-based contractor has taken up a role in another country. They will have to pay taxes in that country as well as in the US since they continue to be its permanent resident. Let's say that the challenges are many, and unless you adopt modern technology, it is unlikely this sector will be able to keep up with the growth it is experiencing. Thankfully, the ideal solution is found in Big Data. Here are some of its benefits to help you understand the role big data plays in the global money transfer market.
1. Better customer experience: Among other things, big data has rendered it exceedingly simple for businesses for money transfer industry globally to support a variety of payment gateways. Also, after considering the sea of options available to customers and their need for flexibility in the context of the types of payment processing solutions, multiple gateways is an absolute must for a company to survive in this sector.
2. Diminish risk: If you are even vaguely familiar with the concept of big data, you shouldn't be surprised to learn how it helps tackle the threat of digital fraud. Continually targeted by nefarious elements, big data not only effectively deals with cyber attackers, but also helps with ransomware and crypto attacks.
3. Better exchange rates: If you thought significant data's prowess in this sector is limited to just payment gateways and security, you'd be very wrong. Another arena where it has proven to be of significant help is enhancing this market's cost efficacy by facilitating a reduction of fees as well as exchange rates. It can prove to be crucial for small scale companies with global operations as well as smaller and individual customers.

The global money transfer market is only poised to grow further, thanks to a variety of factors that we'll get into another time. This growth often translates into immense pressure for companies, struggling to serve high-quality experiences to customers as competition continues to intensify in the market. Also, as per the discussion above shows, payment app development with big data integrated into it can be of immeasurable help.

Author's Bio: 

Kaushal Shah manages digital marketing communications for the enterprise technology services provided by Rishabh Software. This article is written with an emphasis on how big data is helping the money transfer or payment transfer system.