Fintech and stablecoin firms ought to take into account wanting outdoors of the US-to-Mexico hall to win the $174 billion Latin America remittance market, in line with a Bybit government.
Most corporations have targeted too narrowly on the $61.8 billion US-Mexico remittance market and are lacking faster-growing corridors between the US and Central America, in addition to remittances inside Latin America, Bybit chief advertising and marketing officer Claudia Wang mentioned in a publish on X on Sunday.
“The corridors that look ‘sizzling’ proper now usually are not the corridors most fintechs are optimized for,” she mentioned, citing Venezuela-to-Colombia, Argentina-to-Bolivia and Spain-to-Ecuador as examples. The non-US-to-Mexico remittance market stands at about $112 billion.
“Cease treating LATAM as one market,” Wang mentioned, including that she spent six months finding out the area:
“Brazil, Mexico, Argentina, Colombia — every wants completely different licenses, completely different rails, completely different stablecoins, completely different advertising and marketing. The businesses successful right here run country-specific stacks, not regional ones.”
Remittances all through the Americas have largely been facilitated via banking rails by corporations together with Western Union and MoneyGram. Nonetheless, each unveiled plans to roll out stablecoin infrastructure following the passage of the GENIUS Act in July.
Western Union is constructing its personal US dollar-backed stablecoin, USDPT, which is within the ultimate phases of readiness and anticipated to launch this month.
Crypto-native firms similar to Binance, Bitso, Strike and Felix Pago are additionally competing within the LATAM remittance market, as are banks and retail and telecommunications firms similar to Walmart and Tigo, Wang famous.
US immigration coverage is influencing LATAM remittance market
Wang famous that the US-to-Central America hall “is exploding,” with remittances in Honduras, El Salvador and Guatemala rising 19%, 18% and 15%, respectively, in 2025.
In contrast, remittances within the oversaturated US-Mexico hall fell 4.5% to $61.8 billion.
Wang mentioned the divergence between rising Central American flows and Mexico’s decline is the results of US immigration coverage: “Migrants from Central America are sending extra dwelling — quicker, bigger quantities — to hedge towards deportation danger.”
In contrast, Mexico has a “extra established and documented diaspora” and thus “would not present the identical panic-send conduct,” Wang mentioned.
Prime remittance corridors in 2025. Supply: Claudia Wang
As for the non-US corridors, Wang famous that whereas a few of these remittance markets are small in absolute phrases, they’re “barely served” by US cash transmitter operators and “nearly untouched by crypto rails.”
Latin Individuals wish to maintain stablecoins, not simply transfer them
Wang additionally mentioned many Western fintechs haven’t realized that in LATAM, the “killer app” is holding stablecoins, not shifting them.
“Customers do not wish to ‘use’ stablecoins for a transaction and convert again to native foreign money. They wish to maintain {dollars}. The transaction is the aspect impact.”
Wang mentioned there is no such thing as a clear winner within the LATAM remittance market, including that “the fintechs that win the subsequent decade on this area will mix native rails, stablecoin liquidity, belief and closed-loop economics — remit → maintain → spend → earn.”
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She added that many fintech firms within the house have constructed their merchandise for the everyday 25-year-old crypto dealer, not the common remittance sender, who’s 40 to 60 years previous and presumably will not be tech-savvy.
Profile of the imagined LATAM remittance consumer (left) vs precise consumer (proper). Supply: Claudia Wang
“In case your product makes a 50-year-old manufacturing facility employee in New Jersey assume for greater than 30 seconds earlier than sending $300 to his mother in Honduras, you’ve got already misplaced,” Wang mentioned:
“The crypto business has spent 5 years optimizing for the unsuitable consumer. The retail remittance buyer in LATAM would not wish to ‘self-custody.’ They wish to know the cash landed.”
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