The Mexico remittance industry has witnessed a robust growth in the past few years. Remittance is an important parameter in the economic growth and national development of Mexico. Majority of the Mexican are dependent on the remittance fund. Remittances are the mainstay of the economies of many Mexican communities. Migrant’s wages sent from abroad to Mexico tends to act as a stabilizing force for Mexican economy. Mexico is one of the largest recipients of remittance in the world. The growth of the remittance industry in the country has been majorly driven by the large number of Mexican workers who have crossed borders in search of higher paying job opportunities. Currently, the remittance market is experiencing growth owing to factors such as the introduction of newer business models like digital modes of fund transfer, decreasing rate of remittance fees and high wage rates existing in the country. The growth in the market is also supported by factors like currency rate fluctuations in the countries to which expatriates belong, government initiatives, decreasing remittance fees and other related factors.
The US has majorly contributed in the transaction volume of remittance in the country. The rising Mexican expatriates in other countries especially in the US because of strong the US labor market and weakening Mexico peso has triggered the size of the remittance industry of the country. Migrant’s workers often transfer more money in Mexico when peso falls against the dollar giving recipient more local currency. The surge in the remittance market in Mexico has also been supported by the bilateral initiatives taken between the US and Mexican governments to facilitate remittance.
The Bill payment market has observed a robust growth in Mexico over the years. Mexico has made tremendous progress in last few years in terms of improving quality of life of its citizen especially in the areas of utilities, entertainment, health and education.
Mexico remittance & bill payment industry is highly fragmented with the presence of number of small, medium size and large companies in the country. The Companies in the industry are competing in the market on the basis of Value, service, quality, technical & operational differences, price commission, marketing efforts, trust, convenience, availability of outlets, price, technology and brand recognition. The companies in the industry are also doing extensive research on developing client centric solutions which will help the customers to easily use the digital mode of payment as per their requirements.
The report titled “Mexico Remittance & Bill Payment Market Outlook to 2021- Growing Mexican Immigrants in the US & increasing internet penetration to Drive Market Growth” by Ken Research suggested a positive CAGR of 2.9% in transaction volume for International remittance in the next 3 years till 2019.
Ankur Gupta, Head Marketing & Communications