The information: Western Union partnered with Argentina-centered online marketplace MercadoLibre to permit digital remittances in Mexico, according to Reuters.
Insider Intelligence
Recipients in Mexico can acquire Western Union remittances from the US via Mercado Pago, MercadoLibre’s Latin American
digital payment
system.
Why it could function: Remittance inflows in Mexico grew 22.9% very last year to hit $51.42 billion, in accordance to our forecast. This will make Mexico a person of the best five receiver countries, for every World Financial institution, and far more than 95% of those remittances came from the United States.
The sizable Mexican immigrant population in the US can just take edge of Western Union’s 61,000 agent locations and a potent electronic presence that comprises hundreds of thousands of electronic wallets to mail funds back household. This isn’t Western Union’s to start with Mexico-primarily based partnership, either: It teamed up with PagaPhone in May well so US consumers can send funds to Mexico employing Pagaphone’s SmartPay cellular wallet.
Other US remittance providers have also dug into the area:
- Walmart provides money transfers to Mexico by means of Walmart2Walmart, which relaunched in March.
- Cryptocurrency exchange Coinbase has explored letting customers send out crypto remittances to Mexico.
- And Brazilian neobank Nubank’s remittance feature works in much more than 100 nations around the world, like Mexico.
The massive takeaway: Mexico’s remittance inflow is expected to expand to $56.24 billion this 12 months, creating up 7.3% of around the world inflow, per Insider Intelligence forecasts. Western Union can capitalize on this growth by means of nearby partnerships with businesses like MercardoLibre.
The firm’s tie-in with MercadoLibre is astute it can just take benefit of the ecommerce firm’s vast user base of over 80 million as it seems to be to increase solutions to other Latin American marketplaces. This can enable Western Union preserve its dominance in an ever more competitive place that has been flooded with dollars transfer fintechs eager to muscle mass in on the market.
Want to go through a lot more stories like this one? Here’s how you can attain obtain:
- Join other Insider Intelligence purchasers who get Payments & Commerce forecasts, briefings, charts, and investigation reviews to their inboxes just about every working day. >> Come to be a Customer
- Take a look at connected matters more in depth. >> Look through Our Coverage
Present-day subscribers can entry the complete Insider Intelligence material archive in this article.