Argentine fintech Uala will allow clients in Mexico to receive money from abroad starting Friday as it taps the fast growing remittances market, which is expected to reach $60 billion in this year.
The new service will be operated by Mexican bank ABC Capital, whose acquisition by Uala was announced in November, with the aim of expanding its financial services in Latin America’s second-largest economy. The ABC Capital purchase is still pending regulatory approval.
“We’re trying to reach part of the population that today doesn’t have banking services, to offer a financial service that allows them to forget about cash and start operating in a more digital and reliable way,” Carlos Hernandez, CEO of ABC Capital, said to Bloomberg News.
Money can be sent from abroad through MoneyGram to users of the Uala ABC mobile app in Mexico. The country is one of the three biggest recipients of remittances in the world along with India and China.
Operations will be limited to $900 per month and money received can be used to pay for goods and services using the Uala ABC card, or cash withdrawals at ATMs.
Uala currently has more than 5 million clients with operations in three Latin American countries.
Source: El Financiero