Blockchain and crypto have a place in a partnered remittance ecosystem in Latin America, the financial services giant found.
Mastercard has released a white paper on remittances in Latin America. Remittance rates are growing faster than the global average in the region, and mobile phone and internet penetration will fuel a transition from cash to digital options, the report said.
As of 2022, one in ten people worldwide lives in a home that receives remittances worth a total of $831 billion. The average cost of sending remittances to Latin America was 5.8% of the amount sent, compared to a global average of 6.3%, and costs reaching up to 25.5% at times, usually in the poorest regions, Mastercard reported.
Competition is increasing, however, sometimes creating a race to the bottom on prices. The report also cited World Bank data that showed that at least half of remittances were transmitted by informal means.
