There is a new option for transferring funds from the United States to Mexico with the entry in the market of the digital remittance firm Remitly.
The Seattle-based company, which launched three years ago, has until now focused its service on the Philippines and India, where its customers are sending more than US $500 million annually through the mobile service.
The company says it recently processed its one-millionth money transfer.
Remitly yesterday announced its expansion into Mexico, where its service is available through half a dozen banks and 11,000 pickup locations.
It guarantees transfers from a credit or debit card within minutes, and those from a bank account within three business days at fees it says average 2%, compared with the average among its competitors of 7.9%.
It also promises competitive exchange rates. Today’s rate was 16.23 pesos to the dollar, according to its website.
The company says the world’s “single largest corridor for international money transfers” is that between the U.S. and Mexico, with more than $24 billion transferred annually.
In addition to its mobile application, the company boasts it has an advanced fraud detection system. The service is available on Android, iOS and online, and is authorized in 45 U.S. states.
Remitly describes the process of making international money transfers as “antiquated” despite the increasing integration of the global economy through technology.
Founder and CEO Matt Oppenheimer said it was while living in Africa that he realized how “incredibly difficult, expensive, arduous and slow” was the process of sending money across international borders.
“We started Remitly because we knew we could change that.”
The startup has raised $22.5 million from sources such as Amazon founder Jeff Bezos’ company, Bezos Expeditions.
Mexico News Daily