International money transfer company Wise announced its official entry into Mexico on Jan. 30 in an effort to tap into the country’s vast remittances market.
The new service will allow Mexican nationals to send money in and out of the country via a fully digital process using Wise’s app or website, where all features are accessible in one place.
In a press release, Wise said its services “are designed for Mexican nationals who need to send money abroad, enabling a transparent, fast and seamless method for international money transfers.”
Beyond offering a more convenient, more affordable and faster way to move money out of Mexico, Wise said it will address the lack of transparency in international payments, referring to it as “one of the biggest challenges in the country.”
According to the news agency Reuters, the new service will strive to address the high hidden fees associated with traditional money transfers.
Efrain Florencia, Wise’s Mexico country manager, said that launching the service in Mexico allows the self-styled global technology company “to disrupt a traditional remittance market by introducing radical price transparency, completely redefining how Mexican nationals send money abroad.”
Remittances are one of Mexico’s most important sources of foreign currency — the country is the second-largest recipient of remittances globally, according to the World Bank.
Reuters reported that consumers moved around US $168 billion in and out of Mexico in 2024 and Wise believes that could double by 2028.
According to a survey conducted by Wise, Mexicans lost US $446 million in hidden fees when sending money internationally last year. Wise claims banks and other providers in Mexico are concealing up to 10.4% of their costs in hidden fees, which could easily surpass US $500 million this year.
With approximately 37.2 million Hispanics of Mexican origin living in the United States, sending dollars converted into pesos is the third-largest corridor for U.S. customers of Wise, a route that has doubled in the past two years.
At the same time, US $480 million in remittances was sent from Mexico to the United States, demonstrating the importance of this two-way currency route.
“With the potential for further growth, Mexico offers a unique opportunity to serve a large and growing region within Wise’s Americas operations,” the company said.
With the new service, Wise says Mexican nationals will be able to quickly and easily send funds in over 40 currencies from Mexico to 160 countries.
With reports from Reuters and El Financiero
About time 👏….now it will be easier to pay locals rent money since Airbnb is less than useless now.
Is this a two way street? Can we expats use Wise to send money from our banks in the ‘USA to our Mexico banks.