On February 12, 2025, the Money Service Business Association (MSBA) and the Inter-American Dialogue Remittance Industry Observatory (RIO) brought together members of the two organizations for a daylong event about the money transfer industry and its prospects for 2025. The event brought together executives and experts from more than fifty companies to discuss competition, technology, regulation and migration within the context of family remittances.
The conversation on competition highlighted the wide range of companies participating in the intermediation of remittances, including longstanding firms with more than two decades of experience as well as emerging businesses offering both cash origination transactions and digital transfers. Market share estimates indicated that ten companies manage 80 percent of flows from the United States-Latin America and Caribbean corridor. Meanwhile, 56 percent of transfers originate primarily from agent locations, while 43 percent come from digital or online vehicles. The discussion underscored that these methods are not mutually exclusive and that consumer choice depends on various factors, with money transfer companies responding to consumer preferences and optimal revenue solutions.
The panel conversation on technology primarily addressed the role of cryptocurrencies, particularly the use of stablecoins as a vehicle for exchange between currencies on the back end of the process. Panelists also considered the expansion of new financial products for senders and recipients. Overall, technology was viewed not as a substitute for cash origination, but as a tool to improve market efficiencies in processing, compliance, consumer behavior, and financial settlements.
An important discussion focused on regulatory frameworks related to the prevention of financial risk, anti-money laundering, licensing challenges, and other regulatory trends associated with federal or state revenue. The audience stressed that it is important to consider the risks of these possibilities as the year progresses and political debates ensue.
The final conversation centered on the impact of migration and deportation on remittances. The analysis examined the extent to which it is possible to estimate the number of deported individuals, concluding that it is likely to be close to the highest number of migrants deported in the past twenty years. The discussion also addressed concerns about deportations’ effects on the U.S. economy and social structure, as well as the spread of anti-immigrant sentiments across the country.
A forthcoming event is scheduled for March 2025 to share findings from this event.
This event was by invitation only.
