Ualá ABC Enters the Remittance BusinessBy Antonio Gozain | Mon, 09/12/2022 - 15:00
Argentinian fintech Ualá announced that users of the Ualá ABC mobile app will be able to receive digital remittances through the app without paying commissions.
Remittances can be sent from abroad through Ualá's website or from the over 40,000 MoneyGram branch offices across the US. Once the amount is received at the Ualá ABC account, users can use it to make purchases online and in physical establishments that accept Mastercard cards. They can also make commission-free withdrawals twice a month at an ATM, said the company.
Ualá ABC users must register their remittance collection folio and fill a brief routine form before collecting their money. The entire process is carried out digitally. People living in Mexico will be enabled to receive up to US$900 monthly in their Ualá ABC account. This figure represents more than double the average individual remittance sent, which was US$406 during 1H22, according to Ualá.
Remittances to Mexico increased by 16.4 percent from January to July 2022, setting the historical record of US$5.3 billion, as reported by MBN. The accumulated income from remittances during 1H22 amounted to US$32.8 billion.
“In [Mexico], remittances sustain the economy of thousands of families and, through accessible and reliable financial products, it is possible to generate a significant social impact. With the launch of remittances, Ualá and ABC Capital endorse their commitment to help achieve a more competitive, transparent and inclusive Mexican financial system,” said Ualá through a statement.
In the context of the new remittance functionality, which has been available since Sep. 9, 2022, Ualá ABC launched the “Estamos Unidos” (We are united) campaign, which offers additional financial solutions for families in the US and Mexico. The mobile app can be downloaded from Android system’s Play Store and iOS’ App Store, said the company.
Financial Education in Mexico
In Mexico, only 25 percent of the adult population has some type of formal financial education, according to INEGI’s National Financial Inclusion Survey (ENIF). Aiming to contribute to financial education in the country, Ualá launched Aula Ualá, a free-to-use platform for financial education focused on the Mexican population, as reported by MBN.