The South American remittance market is a vital source of income for many countries in the region, with an estimated value of $43 billion. The market is heavily dominated by traditional money transfer providers such as Western Union and MoneyGram, but new startups are starting to make an impact. Companies like RapiPago and Bcash have been able to tap into the growing market of mobile and digital payments in the region.
While the South American remittance market is growing, it still faces challenges such as high fees and lack of access to formal financial services for many people. But the market is expected to continue growing in the coming years. According to recent reports by PwC, Bain & Company, McKinsey and YC, the market is expected to grow at a CAGR of 5.2% from 2020 to 2025. Remittances startups such as Bitso and Mercado Pago are also expected to play a bigger role in the market in the future by providing cheaper and more efficient services.
As more people in South America gain access to mobile technology, digital currencies and other financial services, the remittance market is expected to continue to grow.
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