BBVA launches remittance service for Latin America
(Latin America Business). Spanish bank BBVA launched an
app-based service, called Tuyyo, enabling consumers to easily send remittances
to people in Latin America and the Caribbean. Tuyyo — which is initially
launching for US to Mexico transfers and will later be rolled out to the rest
of Latin America — allows users to send money to Mexico 24/7.
Recipients can access the funds within minutes, retrieve the
money via ATM, bank account, or cash pickup locations, and minimize the costs
involved with retrieving money. The app is compatible with iOS and Android
devices.
Remittances are a massive global market, poised to grow from
$575 billion globally in 2016 to $615 billion in 2018.
Mexico is a significant market to enter, as it’s the
fourth-largest recipient of global remittances. Remittances to Mexico reached
an all-time high of $26.97 billion in 2016, an 8.8% increase from 2015,
according to research from BBVA. And 95.4% of remittances to Mexico came from
the US, making it a popular channel for Tuyyo to target first.
Tuyyo allows BBVA to compete with digital-first firms. BBVA
has powered money transfers to Mexico since 1995, and has since expanded to
other key Latin American markets. Launching a digital platform allows BBVA to
compete with digital-first players like WorldRemit, which sees over 700,000
monthly transactions. Digital-first remittance offerings are popular because
they are less expensive than traditional services. But because Tuyyo is a
bank-based offering, which is typically even more expensive, it might be
popular because it's convenient and cheap, allowing it to compete.
Latin America Business - misancosa@gmail.com