💳 Mastercard's report on money transfers in Latam: an "unequal", but promising market

💳 Mastercard's report on money transfers in Latam: an "unequal", but promising market

Currently, Visa and Mastercard hold an 80% share of the global market. However, in Latin America, the situation is ambiguous for these networks: after all, in most countries, the level of bancarization is too low (in fact, this is why alternative payment systems flourish). Therefore, the Mastercard team must remain vigilant at all times... Which, indeed, they are doing.

➡️ While the rest of the world has seen an average annual growth of 4% in money transfers since 2014, Latin America has experienced a growth rate of 10%.

➡️ The USA🇺🇸 – Mexico🇲🇽 corridor stands as the largest money transfer route globally. In 2023, a staggering 65 billion USD flowed through this corridor.

➡️ In El Salvador🇸🇻, 2 out of every 10 families receiving money transfers live in poverty.

➡️ In Honduras🇭🇳, remittance recipients make up about 50% of all households.

➡️ According to researchers, the year 2023 marked a turning point when remittances reached their historical peak. It is now expected to decrease in favor of digital options.

➡️ By 2026, digital transfers are projected to contribute over 20 billion USD to the total volume of cross-border transfers in the region.

➡️ The primary challenges facing the industry in the region are regulation (or the lack thereof) and the slow speed of transactions (due to inadequate digital infrastructure in certain areas).

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