Remittances act as a lifeline in developing markets where access to finance is limited. As a result, many organisations are looking to make sending and receiving money from abroad as simple and convenient as possible. The latest to do so are Paysend, the UK payment ecosystem, and Mastercard, the global payments processor.
In their new partnership, the two firms have launched Paysend Libre in Mexico. The new product brings the benefits of Mastercard, its acceptance network with Paysend, and its capability to transfer funds between Latin America (LatAm) and the USA.
Paysend Libre allows the sender to initiate the transfer with just the phone number of the recipient by choosing the ‘Libre’ option in the Paysend App. The process, which is zero-fee, generates a virtual Paysend Mastercard to act as a financial tool for recipients who lack a bank account or card. The recipient can directly access the funds received on the virtual Paysend Mastercard and securely spend the funds in real-time.
Many still collect their remittances in cash and Paysend Libre makes it easy for those wishing to do so.
Remittances to LatAm serve as a safety net for millions and immigrants are a lifeline for their loved ones back home, many of whom still rely on cash. According to the Interledger Foundation, in Latin America and the Caribbean, 70 per cent of the population are unbanked or underbanked, while living in some of the largest recipient countries for remittances.
In particular, the USA to Mexico corridor remains one of the largest remittance corridors in the world, with $65billion being sent just in 2023, primarily in cash. After piloting Paysend Libre in Guatemala and other countries previously, the launch in Mexico will continue to build on access to this important remittance corridor.
Widening financial inclusion
“Paysend and Mastercard are doing something never done before,” says Jairo Riveros, group head of strategy and MD of the Americas at Paysend. “Through Paysend Libre we are using remittances as a vector for widening financial inclusion, bringing more and more people into the financial ecosystem who were previously ignored by fintechs and financial institutions.”
“As people increasingly favour digital solutions to send money quickly and securely, we are committed to working with partners like Paysend, who share a drive for payment innovations that also advance financial inclusion,” said Kiki del Valle, division president, Mastercard North.
“With a Mastercard virtual card, people will be able to instantly participate in the digital economy, quickly accessing the funds they need and make payments at more than the 100 million merchant locations worldwide that accept Mastercard.”
Utilising Mastercard Move
Paysend Libre leverages Mastercard Move’s money movement capabilities. Mastercard Move enables people and organisations to move money quickly and safely. This can be done both domestically and internationally across more than 180 countries and in over 150 currencies, with access to more than 95 per cent of the world’s banked population.