The London-based cross-border payments company, Wise Plc, has started operations in Mexico with the aim of capturing a share of the remittance market in the country, which recently experienced a 10.6% increase. Wise users will be able to send money from Mexico to more than 40 currencies and 160 countries, facilitating the transfer of Mexican pesos to US dollars, among other types of transactions. This move not only benefits Mexican users who wish to send money to their relatives abroad, but also facilitates Mexicans living in the United States to make transfers from dollars to pesos through the Wise platform. With the dollar-to-peso service positioning itself as the third most important transmission route for Wise's US customers, there has been a significant increase in the volume of transfers in the last two years, highlighting growth potential in this market. Harsh Sinha, Chief Technology Officer of Wise, stated that the company is prepared to face possible changes in global sanctions, while emphasizing Wise's commitment to providing effective solutions for the needs of Mexican citizens. Sinha highlighted in an interview that the company is committed to delivering an efficient service in a constantly expanding region, strengthening its presence in the Americas. In this regard, Wise has identified that banks and other money transfer services in Mexico conceal up to 10.4% of their costs in hidden fees, which represents an obstacle for users seeking more transparent and efficient financial options. Wise's entry into the Mexican market comes in a context of uncertainty regarding the remittance industry in the country, following the designation of Mexican cartels as terrorist organizations by former US President Donald Trump. Migrants send more than 60 billion dollars a year to Mexico through the remittance system, which accounts for 4% of the country's gross domestic product, highlighting the relevance and need for efficient and transparent services in this financial sector.
