2023-06-23 20:02:02
Breno Andrade
Among the many money movement use cases enabled by Visa Direct, one of
my favorites is cross-border remittances, especially because of the positive domino effect
which triggers As we well know, through remittances, the entry of money from the
abroad has a direct impact on the person who receives the remittance in the first place, but that
is just the beginning of a sequence of events that energizes the entire community that
surrounds the person. This includes the small market, the local hairdresser or the restaurant of the
neighborhood, which ultimately positively impacts the entire economy.
Particularly in the era of digitization, remittances have become important
monetary resources that are crucial for the well-being of not only families everywhere,
but of the communities in general, taking into account that remittances can represent
an important part of the economy of some countries of Latin America and the Caribbean. By
For example, according to the most recent data from the World Bank, by 2021 remittances
received in El Salvador, Honduras and Jamaica represented more than 25% of GDP
of these countries.
Undoubtedly, innovation in the movement of money has allowed greater speed,
transparency, convenience and cost savings for those who depend on remittances.
Today, 53% of consumers admit to having used digital applications to
Send and receive funds around the world. A recent study published by Visa 2 surveyed
more than 14,000 consumers in ten different countries (including Mexico and Peru) and found
that digital remittances are rapidly outpacing other popular forms of movement
of money such as going to a physical branch or sending cash or checks. And that’s because it’s
clear that digital solutions promoted in the region, by payment platforms such as Paysend,
MACH, Kash and Palla – and enabled by Visa Direct – can largely solve the
traditional physical payment challenges, including long waiting lines, turnaround times,
slow or uncertain delivery and tedious processes.
Digital remittances with Visa Direct can reach more than 7 billion endpoints
in the world, either through a debit card number, a bank account or a
digital wallet. From Chile to Central America, we have allied with different partners in the
region to offer digital remittance solutions to more people in our countries. By
For example, Kash is using Visa Direct’s technology to move money faster in
Panama, Nicaragua, Costa Rica, Honduras, El Salvador and Guatemala. And this is just the
beginning.
In Latin America and the Caribbean, in particular, the inflow of remittances and the adoption of
digital technologies have been exponential and constant. On the one hand, the digital revolution has
penetrated into all facets of daily life, while remittance activity has
continuously increased. The combination of these two factors are resulting in
a visible change in consumer preference and behavior. In fact, more
70% of remittance senders in Mexico and Peru prefer digital payment methods over
physical methods, indicating a significant increase in adoption over the past year. The
adoption rate of digital payments is so high that few users report barriers to
use app-based payment methods to move your money. security is also
playing an important role; According to this same survey, many consumers of
Latin America consider that digital technology based on apps – when used to
sending and receiving money – is “the safest viable option”.
Despite some of the global trends highlighted, such as notable shifts toward a
digital culture and an increase in adoption, remittances still represent one of the
most fragmented sectors of financial services in terms of technology, models
economics, providers and user experience. All this represents an opportunity
incredible. With solutions like Visa Direct we can be agents of change, reducing the
cost of remittances and peer-to-peer money transfers and adding efficiencies to
make it easier for more people to receive money in a way that is most useful to them. Besides,
our work with Visa Direct creates new and innovative opportunities for inclusion
finance, simplifying the process of moving money and leaving fewer people out
of the global financial system.
At Visa, empowering our global partners and senders and redefining the landscape of
remittances is a vital priority. For this, we maintain our commitment to collaborate with
all ecosystem actors to create a remittance network that helps more people prosper
people in more places.
#Digital #remittances #rewriting #history #families #countries