Mastercard has published a white report on remittances in Latin America and highlighted that key partnerships are essential for the transition to blockchain-based payment options.
Discount growth rate
Remittance growth rates are faster in Latin America than worldwide, and cell phone and Internet penetration will accelerate the transition from money to digital. This trend is particularly visible in the region's emerging economies, where increased access to digital financial services is driving the adoption of digital payments. These factors combined are creating a favorable environment for the expansion of blockchain-based money transfer services in Latin America.
Discount costs
The average cost of sending remittances to Latin America was 5.8% of the amount sent, compared with a global average of 6.3%, and costs could reach up to 25.5% in the poorest regions. This disparity in costs highlights the need to adopt cheaper and more accessible payment solutions, such as blockchain-based transfers, to reduce reliance on traditional services and promote broader financial inclusion.
Outlook for the future
The report identifies several current remittance options that "speak to the emergence of a completely new reality in global remittances". Latin America currently receives 43% of its remittances digitally, against a global average of 52%, and digital remittances are forecast to be $20 billion by 2026.
Conclusion
Mastercard has published a white report on remittances in Latin America and highlighted that key partnerships are essential for the transition to blockchain-based payment options. The average cost of remittances to Latin America is lower than the global average, but issues of trust, regulation and technological adoption remain for crypto players and others in the market.
