Dublin, April 12, 2024 (GLOBE NEWSWIRE) -- The "Mexico International Remittance Market Business and Investment Opportunities - Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics - Q1 2024" report has been added to ResearchAndMarkets.com's offering.
International inbound remittance market in Mexico has increased at 8.7% during 2023 to reach US$ 71.26 billion in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 5.4%, increasing from US$ 65.58 billion in 2023 to reach US$ 87.88 billion by 2028.
Remittance outflow market in Mexico has increased at 4.7% during 2023 to reach US$ 1.23 billion in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 2.9%, increasing from US$ 1.17 billion in 2023 to reach US$ 1.38 billion by 2028.
This report provides a comprehensive analysis of the international inbound and outbound remittance market in Mexico. It covers the market opportunity by transaction value, transaction volume, average value per transaction, key market players, market opportunity by channel, consumer profile, and by sending / receiving countries.
The remittance industry is poised to grow at an accelerated pace in Mexico over the medium term. Mexico, notably, is the second-largest recipient of remittances from abroad after India. The soaring pesos, in 2023, has forced many migrants in the United States to increase the amount sent back home. The trend is projected to continue further in 2024, aiding the growth of inward remittances.
To tap into the growing market, firms are entering into strategic partnerships to simplify remittances. Furthermore, global payment firms are also eyeing entry into the Mexican remittance sector. This is expected to drive the trend of mergers and acquisitions in 2024. Overall, the publisher maintains a positive growth outlook for the remittance market in Mexico over the next three to four years.
The strong construction sector, a leading employer of Mexican migrants, drives record remittances to Mexico
The United States government is spending heavily on infrastructure projects and the trend is projected to continue further in 2024. After the pandemic outbreak, the government has undertaken various measures and policies to revive economic growth, including higher spending in the construction sector.
The US-based construction market is one of the leading employers of Mexican migrants. With the government spending billions of dollars, through the CHIPS and Inflation Reduction Act, the outlook of the construction industry remains strong over the medium term. This, in turn, will drive further employment opportunities for Mexican migrants, subsequently driving more remittance inflows to Mexico.
Firms are entering into strategic collaborations to simplify remittances for Mexicans in 2024
The remittance market is poised to grow at a significant rate over the medium term. Consequently, to tap into the growing market over the next three to four years, payment providers are forging strategic alliances in the Mexican market.
Nubank, in January 2024, entered into a partnership with Felix Pago to make a foray into the fast-growing Mexico-based remittance market. The collaboration will enable its 5.5 million Mexican users to receive money from the United States through WhatsApp. The remittance industry, in Mexico, is dominated by a few traditional incumbents. Through this collaboration, Nubank is seeking to boost its value proposition by simplifying the remittance process.
The foray into the remittance market is part of Nubank's strategy to expand and diversify in Latin America. Going forward, the publisher expects global remittance service providers to also enter the Mexican market, thereby driving competitive landscape and industry growth over the next three to four years.
Firms are entering into acquisition deals to tap the high-growth remittance industry in Mexico
Amid the high growth projected in the Mexican remittance industry over the medium term, global firms are also eyeing expansion in the sector through mergers and acquisition deals. The trend is expected to gain further momentum in 2024.
Airwallex, the global remittance service provider, announced plans to acquire Mexico-based MexPago in October 2023. Acquiring MexPago will not only enable Airwallex to enter the Mexican remittance market but will also bring the coveted Institution of Electronic Payment Funds licenses. MexPago will also give Airwallex access to the Interbank Electronic Payment System. The expansion in Mexico builds on similar cross-border payment partnerships announced by Airwallex over the last few years.
Many other global firms have been eyeing expansion in the Mexican remittance market. Paysend, the UK-based fintech firm, entered into a collaboration with Visa in September 2023. The partnership is part of the firm's strategy to expand its remittance service in Mexico. From the short to medium-term perspective, the publisher expects more and more global firms to expand their footprint in the Mexican remittances market.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 130 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $71.3 Billion |
| Forecasted Market Value (USD) by 2028 | $87.9 Billion |
| Compound Annual Growth Rate | 5.4% |
| Regions Covered | Mexico |
Scope
International Inbound Market Opportunity Trend Analysis in Mexico
- By Transaction Value
- By Transaction Volume
- By Average Value Per Transaction
International Inbound Market Opportunity Trend Analysis by Channel in Mexico
- Digital (transaction value, transaction volume, average value per transaction)
- Mobile (transaction value, transaction volume, average value per transaction)
- Non-Digital (transaction value, transaction volume, average value per transaction)
International Inbound Remittance Analysis of Consumer Profile in Mexico
- Analysis by age group of senders
- Analysis by income of senders
- Analysis by occupation of senders
- Analysis by occupation of beneficiaries
- Analysis by purpose
International Inbound Remittance Flow Analysis (Country to State / Region) in Mexico
- Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
- Market share by transfer channel by key state / regions
International Outbound Market Opportunity Trend Analysis in Mexico
- By Transaction Value
- By Transaction Volume
- By Average Value Per Transaction
International Outbound Market Opportunity Trend Analysis by Channel in Mexico
- Digital (transaction value, transaction volume, average value per transaction)
- Mobile (transaction value, transaction volume, average value per transaction)
- Non-Digital (transaction value, transaction volume, average value per transaction)
International Outbound Remittance Analysis of Consumer Profile in Mexico
- Analysis by age group of senders
- Analysis by income of sender
- Analysis by occupation of sender
- Analysis by occupation of beneficiaries
- Analysis by purpose
International Outbound Remittance Flow Analysis (State / Region to Country) in Mexico
- Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
- Market share by transfer channel by key state / regions
For more information about this report visit https://www.researchandmarkets.com/r/pl5n38
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