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Mobile payments and remittances, the favorites of the ‘fintech’ firms

New disruptive mechanisms have targeted the issue of remittances, one of the most representative is the financial technology sector (fintech), which is why these companies are changing the way migrants send money to their country of origin. .

According to the most recent report of the Fintech sector, carried out by the Inter-American Development Bank and Finnovista, mobile payments and remittances are the fastest growing sectors, accounting for 24 percent of the enterprises identified in the sector.

About the operations

The report details that there are 117 companies in this area that operate in Latin America and are developed mainly in the United States, Asia and Europe, designed to send money to companies or people abroad.

In Mexico, the World Remit platform offers Mexicans remittance services through its portal. Another example is TransferWise, which has more than a million downloads on Google Play, like TransferGo or Azimo

Blockchain technology

Despite the fact that blockchain technology is not yet considered as a fundamental element in the banking and financial system, banking institutions have developed through this product that reduce costs and accelerate transactions.

The fourth Financial Inclusion Report 2018 of the Latin American Federation of Banks (Felaban) adds the blockchain to solutions in the field of finance and in issues such as remittances.

The fact that the blockchain can be used in the verification process of financial transactions will be a gain. Data of sender, receiver, time, date, financial asset, value, quantity, may be stored by a computer network, where each block of information is directly linked to its predecessor, adding the impossibility of changing or modifying the information, what makes this a technology in principle desirable, “the document explains.

Since March 2018, the company specializing in transactions through Bitcoin launched Bitso Remesas, which operates in Mexico and allows receiving and sending money to the US and Latin America.


Also published on Medium.

Published inFintech

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