New Visa research study highlights that Latin America and the Caribbean are consistently adopting digital applications to receive and send remittances.
The ability to send and receive remittances efficiently is desired by many people in Latin America and the Caribbean (LAC).
Visa's annual report “ Money Travels : Adoption of Digital Remittances in 2024”, a survey covering almost 45,000 remittance senders and recipients in twenty countries (including Brazil, Mexico and Peru), found that cross-border digital remittances are showing a constant transformation in their use and adoption in the region.
According to Visa's new report, digital apps remain the primary method for sending and receiving remittances, followed by digital remittances from a physical location.
Adoption of digital apps is significantly high in Brazil for both senders and recipients (80%-84%) and is also significant in Mexico (64%-59%) and Peru (61%-56%). Use of cash, checks and money orders is low among residents of the region (<10%).
The need to make and receive fast, easy and secure payments has never been more important for families, communities and economies in Latin America.
And while the research indicates that global remittances have declined year-on-year, likely due to the sustained effects of global inflation, its results reveal that senders remain positive about future remittances.
“Remittances are a lifeline for many people in Latin America and are vitally important to the prosperity of many of our developing economies. While our new research shows an incredible acceleration of digital remittances, there is still more to do collectively to make digital remittances more accessible and affordable for everyone,” said Breno Andrade, Head of Money Movement for Visa Latin America and the Caribbean.
“At Visa, shaping the future of the remittance ecosystem is a priority. And with Visa Direct – our real-time payments platform – we are taking great strides in simplifying remittances, making them faster, cheaper and safer, paving the way for a more prosperous and interconnected future.”
The study “ Money Travels : Adoption of Digital Remittances in 2024” examines how consumers send money abroad, delving into the rates, methods and reasons for sending and receiving these vital payments for many people.
Highlights among remittance senders and recipients in Latin America include:
- Remittance use in Mexico and Peru has moderated compared to the previous wave. Surveyed residents of Peru, Mexico and Brazil receive money from other countries more frequently than they send money abroad.
Remittance rates are similar across Latin American countries, but residents of Mexico are more likely to have received remittances (34%) than residents of Peru (29%) and Brazil (26%).
- The frequency of shipping is slightly lower in Mexico (64% send at least once a year) vs. Peru and Brazil (75-76% send at least once a year).
The frequency of reception is similar among all Latin American countries (70-80% receive at least once a year).
- The main reasons for sending remittances are due to an unexpected need (Peru and Mexico) or own accounts/investments (Brazil), while the main occasions for receiving remittances are due to an unexpected need (Peru), regular remittances (Mexico) or own accounts/investments (Brazil).
Few Latin American residents (5-15%) say they sent money to improve their future prospects.
- High fees are the main pain point for digital remittance users in Mexico, Peru and Brazil, although around two-fifths report no problems using digital payments to move money.
- Many remittance users see themselves using digital money transfers more frequently in the future (57% in Brazil, 35-36% in Mexico and Peru).
- Many in Latin America see ease of transfer as a key benefit of digital remittances and view app-based digital payments as the most secure of any other method.
