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In 2021, remittances to Latin America and the Caribbean exceeded $131 billion. By 2023, that figure had already surpassed $160 billion, according to World Bank data. That is a growth of nearly $30 billion in just two years, and the trend did not stop there.
Remittances to Latin America and the Caribbean grew by more than $50 billion between 2021 and 2024, driven by increased labor migration, digital adoption, and a sustained decline in the average cost of sending money, according to the World Bank.
How much have remittances grown since 2021, and what explains it?
The jump is significant: according to the World Bank and the Knomad project, remittance flows to Latin America and the Caribbean went from approximately $131 billion in 2021 to more than $161 billion in 2023, with preliminary estimates for 2024 exceeding $180 billion.
Three factors explain a large part of this growth.
Greater presence of Latin American workers in the U.S. The migrant workforce grew during the post-pandemic period, with more people in active employment sending money regularly.
Effects of inflation in countries of origin. When prices rose in Latin America, family members in the U.S. responded by sending more to maintain the same standard of living. The purchasing power of the dollar in recipient countries became an additional reason to increase the amount of transfers.
More channels available and easier to use. The proliferation of digital services reduced friction in the process. Sending money no longer required going to a physical branch: a phone and a debit card were enough.
The digital shift: why most remittances are no longer sent in cash or through traditional services
Until the middle of the last decade, most remittances went through physical agencies: Western Union offices, MoneyGram, and specialized stores. That model has not disappeared, but it is no longer dominant.
According to the Sending Money Home report by the International Fund for Agricultural Development (IFAD), in 2023 more than 50% of global remittances were sent through digital channels, compared to less than 20% in 2019. The pandemic accelerated that change: with branches closed, users who had never tried an app or a WhatsApp service did so out of necessity, and many did not look back.
The digital channel is not just more convenient: according to the World Bank, digital transfers cost on average 1 to 2 percentage points less than traditional cash channels, which represents hundreds of dollars a year for a family that sends remittances regularly.
The consequences for the market were clear: traditional providers had to invest in their own digital platforms or lose market share. At the same time, new players entered the market, operating exclusively online or through messaging apps with lower cost structures.
What does the growth of remittances mean for the countries that receive them in Latin America?
The accumulated volume of remittances is not an abstract figure: in several Latin American countries, it represents a significant fraction of the gross domestic product and a more stable source of income than foreign direct investment or tourism.
For recipient countries, the sustained growth of the last four years has concrete implications in three dimensions.
Stability of family consumption. Remittances go directly to households, so they support spending on food, housing, education, and health even when the local economy contracts. During the years of highest inflation in the region (2022-2023), this income acted as a buffer.
Pressure on local payment systems. The higher volume of incoming transfers required local banks and digital wallets to improve their receiving infrastructure. In several countries, this translated into more options for instant credit, deposits into digital wallets, and cash withdrawals at convenience points.
Reduction of dependence on cash at the destination. As recipients gain access to digital wallets or bank accounts, the entire transfer cycle can occur without anyone touching physical cash. This opens the door for recipient families to save, pay for services, and access credit using their remittance history as backing.
What has changed for the sender: more options, lower fees, and faster speeds
From the perspective of a sender in the U.S., the market today is structurally better than it was in 2021 in three key ways.
The average cost has gone down. The World Bank publishes the Remittance Prices Worldwide report quarterly, which is the global benchmark for the cost of transfers. The global average, which was around 6.4% of the amount sent in 2021, fell below 6% in 2023. In specific corridors from the U.S. to Latin America, digital providers consistently offer costs below 3%, compared to traditional providers that can exceed 5-7%.
Speed has become the norm. The 1 to 3 business day delivery times that characterized international bank services are now a residual option. The most widely adopted digital services deliver in minutes, not days. That has changed what users expect as a minimum standard.
The exchange rate has become the real differentiator. With fees converging toward similar levels among the main digital players, the margin that each provider applies to the exchange rate has become the factor that most impacts the amount that arrives at the destination. Understanding that difference is key: in practice, a low fee can be accompanied by a less favorable exchange rate, and vice versa. The article The exchange rate and remittances: why you lose more money than you think when sending explains it in detail.
How to take advantage of these trends with Félix Pago when sending money today
The landscape described by this data is not just context: it has practical consequences for someone who sends money regularly from the U.S.
First, if you still use a cash service or a physical agency as your main channel, it is worth comparing. Not because physical services are bad, but because the cost gap between digital and in-person has widened, and in many cases, it is no longer justified by greater convenience.
Second, the channel matters as much as the provider. Services that operate via WhatsApp, like Félix, eliminate the need to download a separate app and allow you to manage everything from the same phone you already use to communicate with your family. That is a real differentiator in terms of daily friction.
Third, compare the amount that arrives, not just the fee. Always use the same reference amount, check the exchange rate applied by each service, and calculate how many pesos, quetzales, or lempiras arrive in each case. That comparison at the destination is what truly measures the total cost.
Félix charges from $2.99 per transfer, operates 24/7 via WhatsApp, and deposits into bank accounts in about 30 minutes in most countries where it operates (in Mexico, in minutes). You can start a transfer by writing directly to +1 (669) 333-3549.
Sources and references
World Bank
- World Bank, Knomad (2024): Remittance Flows to Latin America and the Caribbean (Data on annual remittance flows to Latin America and the Caribbean, 2021-2024.)
- World Bank: Remittance Prices Worldwide (Quarterly index of the average cost of remittance transfers by corridor, global benchmark.)
IFAD
- IFAD (2023): Sending Money Home (Report on global remittance trends, digital adoption, and distribution by transfer channel.)
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