The remittance market in Latin America provides you with an excellent opportunity to escalate your business. Even during the Covid-19 pandemic, the market kept growing, exposing the need to make cross-border payment processes easier and as secure and reliable as the traditional banking system. If you want to expand your business into new markets, here we tell you why Latin America is the best option.
One of the main goals of every company is to improve its scalability, that is, to be able to grow, improve its services and boost its income without impairing quality or increasing costs. To do this, you need an infrastructure that supports a larger number of users and that can go international.
The cross-border payment market in Latin America has opened up great opportunities for business to become more scalable. Due to globalization and intraregional migration, it has shown steady expansion. Remittances, which are sent by emigrants to their families, account for a large proportion of cross-border payments. Only in 2020, despite the negative impact of the pandemic, more than 702 billion dollars were sent in remittances globally, surpassing the amount of money that came from direct foreign investments ––as stated in the report of the Global Knowledge Partnership on Migration and Development (KNOMAD).
According to the World Bank, the remittance flow to Latin America increased by 6.5% in 2020, reaching 103 billion dollars. Experts predict that it will continue to grow in the future thanks to the digitization of cross-border payment processes.
In Latin America, there are many countries that offer great market opportunities in terms of remittances and cross-border payments. Brazil, Ecuador and, particularly, Colombia showed a significant increase in the remittance flow, and Bolivia, Paraguay and Peru received payments that accounted for more than 1% of their GDP. As we can see, the industry’s potential for growth is undeniable.
Moreover, according to FXC Intelligence, 43% of the Latin American population is unbanked, which makes it more difficult for people to receive payments from abroad and highlights the need for digitized cross-border payment services. This is your opportunity to get into the remittance market in Latin America by offering services that meet the needs of your clients.
Moving into a New Era in Cross-Border Payments
Payment processors still have to face many problems when dealing with cross-border payments because each country has its own laws, regulations and currency, which often contradict either local or bank licenses on issuing and acquiring. SWIFT ––the global network for financial telecommunications between banks and other institutions–– has some limitations:
❌ It has limited network coverage and it requires users to have a bank account.
❌ Settlements can be delayed.
❌ Fees are high and vary depending on the sender or receiver’s location.
New technologies make it possible to offer a wider range of solutions within the financial system. For that reason, many companies are choosing to integrate with cross-border payment platforms, which allow their clients to make and receive cross-border payments, such as remittances, and avoid all the problems mentioned above, since:
✅ It is not necessary to have a bank account in order to send or receive payments.
✅ You can make direct real-time transactions without delay or intermediaries.
✅ Fees are significantly lower.
These alternatives are better than other options in the conventional cross-border payment network and allow you to reach more users in the Latin American remittance market at lower fees than those charged by banks. Remitee Business is one of the best platforms to achieve that goal.
Remitee: Your Ally in the Latin American Market
One of the main goals of every company is to improve its scalability, that is, to optimize its processes, reduce its costs and have an infrastructure that supports more users at no extra cost and that can be internationalized. Traditional payment methods fail to meet these needs but, by integrating with the cross-border payment platform Remitee Business, your business will achieve scalability and you will be able to cross any border successfully.
Remitee Business is a multi-purpose digital platform where you can make real-time money transfers, settlements, and payments to many countries using only one connection, avoiding delayed transactions due to intermediaries and any problem related to limited banking network coverage. It is a fast, secure and reliable way to enter the Latin American remittance market and to offer your clients a service that meets their needs and expectations. In addition, our fees are lower than those charged by banks and other institutions, and your clients can receive payments wherever they need. This is an excellent opportunity for your company to grow.
By means of our leading-edge technology ––which was selected for the Microsoft for Startups and Google for Startups Accelerator: Sustainable Development Goals programs–– you will be able to expand your business into new markets in Latin America as well as have access to millions of bank accounts, cash pick-up points, and digital wallets, without the need to have a bank account or spend too much money.
Do you want Remitee Business to be your partner? Contact us or arrange a meeting right now. We want to be your partner on this journey beyond the borders.