Guatemala: Competition for Remittances

$4.5 billion a year comes from the U.S., generating a fierce battle between 22 banks and transfer companies that compete for the market.

Thursday, May 3, 2012

The stiff competition for larger pieces of the cake that makes up remittances is leading banks and financial companies to sign alliances and join forces.

For example the company AirPak / Western Union this week signed an alliance with Banco de los Trabajadores (Bantrab) in order to increase their participation in the remittance business through the promotion "Remesa del Norte” (Remittance from the North). Customers participate in a draw for a car, motorcycles and appliances with each consignment.

Another agent in the market is Divine Star SA, with the support of MasterCard, and American banks First California Bank, Bank of America and Wells Fargo, and which in Guatemala is seeking an alliance with the Crédito Hipotecario Nacional.

"Competition for the business of remittances has led to a reduction in the cost of transfers, which benefits the pockets of migrants and their families: however, banks and remittance companies are left with about $232 million, which is 5.3 percent of total shipments," reported Elperiodico.com.gt.



More on this topic

Prepaid Cards Are Coming

April 2012

Although in Colombia, Venezuela and Peru use of pre paid cards is widespread in Central America they are only in the initial stages of implementation.

Having successfully piloted in South America, MasterCard and Visa intend to introduce and expand the use of the prepaid card in Panama, where the use of this product is in an early stage, as well as the rest of Central America.

GCP launches credit card in Panamanian market

September 2008

It is an automobile card offered by Grupo Corporativo Perez (GCP) which is made up of the following companies: Ricardo Pérez, Tambor S.A., Seguros Centralizados and Tofis.

The card, which is already available in the market, will be issued by Credomatic and will be backed by MasterCard.

MasterCard bets on prepayments

July 2008

MasterCard is betting on the development of prepaid cards not just in Panama but in all of Latin America.

Credit and debit cards have been popular in Panama's market, where most of the population has access to banking services.
The director of sales and product delivery for MasterCard, Max Chion, says there's a long road to travel in the development of new products for the mass market.

MasterCard transactions increase in Latin America and the Caribbean

May 2008

During the first quarter of 2008, cardholders of MasterCard in Latin America and the Caribbean used their cards for 415 million purchases, generating a gross dollar volume of 44 billion dollars. This is a 20.7 per cent increase in terms of local currency compared to the same period in 2007.

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