Competitiveness in the Remittance Business

New firms are expected to entry in the remittance industry with new technologies, especially for mobile phones.

Wednesday, April 24, 2013

According to Luis Felipe Rodriguez, vice president and general manager of Western Union in Mexico, the slowdown in the U.S. economy has led to a slower pace of job creation, which along with more efficient border controls and even more restrictive laws in some states such as Arizona, has caused an unprecedented decline of migration to that country. "Regulation in the United States is changing the dynamics in the business of remittance companies," he says.

Regarding the impact of technology on remittances, Rodriguez says that some consumers prefer to receive cash, however, forecasts are for the entry of new competitors in the remittance industry, due to the popularization of new technologies which function as a method of payment.

"We will see new players integrated into the chain, because of opportunities created by the new means of payment, especially mobile phones ..." said Rodriguez, who states that the technology transition is linked to a "cultural change which will only take place over the long-term. "



More on this topic

Guatemala Lags Behind in mobile payments

May 2017

It is estimated that the country has a delay of between 7 and 10 years in terms of access and use of mobile banking and electronic transactions compared to the United States and some South American countries.

The low level of bankization, low investment in technology and communication development, and difficulties in accessing the internet are some of the reasons why the country lags behind in relation to other nations in the use of applications and systems for making transactions online.

Cell Phones: Primary Means of Connecting to Internet

September 2013

In Costa Rica, 71% of users connect to the internet via their cell phone, while 68% do so using a computer at home.

Elfinancierocr.com reports that "that means that about 920,000 people say that they connect to the internet using a mobile device," according to a study prepared by Unimer RED 506, which noted that access through this medium grew by 56% compared to 2011 and 30% compared to 2012.

Mobile Phones and Banking

September 2012

60% of the world's population have no access to banking services, although 85% have a mobile phone.

Brett King, founder of the first mobile banking service in the U.S. and the UK, and specialist in innovation in financial services, was at the XII Latin American Congress on banking automation, which is being held in Panama.

Sending Remittances By Mobile Phone

August 2012

From the month of September recipients of remittances in Guatemala, Honduras and El Salvador will be able to receive them on their mobile phones.

By using a its cellular network platform, the Guatemalan company Tigo Money, a subsidiary of Tigo, will offer international services for money receipts.

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