This report analyzes the role of money transfer intermediaries on migrants sending remittances to Latin America and the Caribbean. We look at the current modernization of the payments industry, specifically as it relates to digital payments, analyzes trends in transfer costs, and discusses the proposed changes to the ‘Remittance Rule,’ including the consequences they may have on remittance senders.
Manuel Orozco, director of the Migration, Remittances & Development program at the Inter-American Dialogue, presented at the International Money Transfer and Payments Conference.
Internet-based products have grown substantially in recent years, and constitute an important source of innovation for the remittance industry. Although these products present important opportunities for businesses and consumers, the low rate of penetration merits further discussion and analysis. The article concludes that perhaps the issue is still more structural, that the ecosystem of payment services is performing unevenly, partly due to poor financial access among clients and merchants.
The Costs of Sending Money to Latin America and the Caribbean