Even with a pandemic, remittances to Mexico are increasing and digitizing

Migrants stop sending money through stores and focus on electronic transfers through phone applications

Sanitary restrictions imposed by COVID – 19 in Los Angeles, made Rosa López stop going to the store to send remittances to her family in Mexico and will start to send money digitally, using your phone.

“ With the pandemic we could no longer go out and I began to send money electronically. I downloaded an application to my phone from a shipping company. It’s very easy “, says Rosa who carries 33 years in the country and makes a living cleaning houses, taking care of children and sick people.

“I’m not going to go back to the store to send the money from there because it is more convenient do it over the phone. I get cheaper and faster. Also I don’t have a car and I had to walk 25 minutes to get to the place. ”

The COVID pandemic – 19 accelerated the transition from in-person remittances to digital remittances through applications on the phone, but also the Banco de México revealed that the first two months of this year increased 20. 9% compared to the same period of the previous year, before of the pandemic.

Rosa says that definitely she increased by a 15% the amount he sends to his mother in Michoacán and to his relatives in Oaxaca and Mexico City. “What little we have we have to share with our family in Mexico.”

Does the pandemic cause the digitization of remittances?

Jorge Godínez Reyes, Director for Latin America at WorldRemit , a company 100% digital, said that the pandemic itself did not cause the shift towards digital transfers , but an acceleration in the use of mobile money and other non-cash payment options.

“It’s a trend that we will continue to see in 2021, in which users are expected to increasingly opt for digital options, as long as they are fast, simple and secure. ”

According to data from the Bilbao Vizcaya bank (BBVA), during the 2020 the 99% of remittances to Mexico, it was done through electronic transfers.

“This gives us an idea that even though there are several ways to send money internationally, digital services have become the favorites ”.

He added that mobility restrictions made it clear that contrary to what many people thought, money transactions do not necessarily have to be done in person and driving cash.

“Digital transfer services offer users ways to send money safely, quickly and very easily from their phones or electronic devices.”

By what percentage did the sending of digital remittances increase in 2020?

“The most recent data indicates that Mexico received $ 33, 000 in remittances during 2020, of which a large percentage were made by digital means ”.

He explained that one of the advantages of digital services, as in the case of the company he represents, is that unlike traditional providers, the service is available the 20 hours a day, 7 days a week from the phone or online.

What are the main security measures that we must follow when making a shipment?

• Reliability: When downloading an application, confirm that you are using a service that is verified and recognized by the authorities international banking.

data Protection: Make sure the money transfer service is committed to protecting your data and not shared with third parties.

Identity of the recipient: confirm the recipient data and how to get the money either stop payment, mobile money or bank transfer . Make sure you are using the full legal name of the beneficiary, as the bank in the receiving country will match their identification with the transfer information.

Transaction speed: Choose a service that guarantees that your money reaches its intended destination quickly and safely.

Follow-up: Perhaps the part of the operation where more security is required is in the follow-up of the transaction. It is important to have the option to track until the transfer is cashed.

Which Are the advantages of online shipments compared to those we do in person at the store or supermarket?

“At this time all security measures for our health are not small, the more we avoid being exposed we will be more protected, and that is the great advantage of digital platforms like ours that are so simple, secure and fast to use that it is not necessary to have an intermediary. ”