What is a remittance?

A remittance It is a money transfer that a person sends from the country where they live and work to another person in a different country, usually a family member. The term comes from the verb “to send”, which means to send or command.

In the context of Latino migration in the United States, remittances are the shipments that immigrant workers make to their families in Mexico, Guatemala, Honduras, El Salvador, Nicaragua, Colombia, the Dominican Republic, Ecuador, Peru, and other Latin American countries. According to the Inter-American Development Bank, in 2026 it is projected that Latin America and the Caribbean will receive more than $174 billion in remittances, with the United States being the main source of those funds.

For many families, remittances represent a significant part of their monthly income: they pay for rent, food, children's education, and medical expenses.

How sending a remittance works

The process is simpler than it seems:

1. The submitter (who sends the money) choose a service provider and specify the amount and details of your payee.
2. The provider applies the exchange rate to convert dollars to the currency of the destination country.
3. The provider charges a perpetration for the service, which can be a fixed fee or a percentage of the amount sent.
4. The beneficiary receives the money by bank deposit, cash withdrawal, or mobile wallet, depending on the method chosen.

With Félix, the entire process happens via WhatsApp: without additional apps, without queues, and in minutes.

Types of remittances

• Exchange rate: The exchange rate that applies when converting dollars to the destination currency.
• Beneficiary: the person who receives the shipment.
• Commission: The fee charged by the supplier to process the shipment.
• Bank transfer: one of the methods for sending a remittance.