The Future of Remittances in LAC

While we have seen big strides in the digitalization of almost every aspect of our lives throughout the last few years, one segment of payments has not yet taken full advantage of the benefits that today’s technology can bring: Remittances; a critical source of income for local households and an immense opportunity to strengthen financial inclusion in the region.

Despite the positive impact of remittances in LAC, users still face substantial challenges that hinder their full access to formal remittances channels. These are related to inefficiencies, high fees and costs, the role of cash, the lack of trust and security, the limited number of traditional players, poor digital UX, and old-fashioned processes, among others.