Quick answer: Remittances to Latin America and the Caribbean are shifting from cash to digital. A Mastercard and PCMI report projected that in 2024 digital transfers would begin to outpace physical cash sent across borders, on top of a regional formal remittance flow of roughly US$146 billion in 2022. The catch is cost: the global average price of sending money is still about double the United Nations target, and cutting that gap is where digital rails, and potentially central bank digital currencies, matter most.
Updated 07/17/2026. By Jake Claver. Educational content, not investment advice.
Remittances are among the largest and most reliable flows of money into developing economies, and for many families they are a primary source of income. Latin America and the Caribbean sit at the center of that story, anchored by the busiest remittance corridor on earth. The figures below trace back to named primary sources, starting with the Mastercard and PCMI research.
What the Mastercard and PCMI report found
The Mastercard and PCMI report on the future of remittances in Latin America (March 2024) put formal 2022 remittance volume to the region at about US$146 billion, more than double the level a decade earlier. The single largest pipeline is the United States to Mexico corridor, at roughly US$56 billion in 2022, the biggest remittance corridor in the world. The report’s headline finding is a turning point in method: digital remittances were set to begin outpacing cash, with the digital share of remittances received in the region rising to 45% in 2023 from just 17% in 2014.
Why remittances still cost too much
Speed and convenience are improving, but price remains the sticking point. According to the World Bank’s Remittance Prices Worldwide data, the global average cost of sending US$200 was about 6.62% in the third quarter of 2024, more than double the UN Sustainable Development Goal target of 3% (target 10.c). Latin America and the Caribbean fare better than the global average, at roughly 5.9%, but that is still well above the goal. The World Bank estimates that reaching the 3% target worldwide would save families about US$20 billion a year.
The method gap is the clearest lever. Digital transfers are consistently cheaper than cash-based ones, which is a large part of why the shift the Mastercard report describes matters for households, not just providers.
The corridors that carry the volume
Remittance flows are highly concentrated. The United States is the dominant sending country for the region, and Mexico and the Central American nations of El Salvador, Guatemala, and Honduras are among the most remittance-dependent economies. Because so much value moves through a handful of corridors, even small reductions in per-transfer cost compound into large aggregate savings. That concentration is also why corridor-specific digital products, rather than one global solution, tend to move the needle first.
Digital rails and what is being tested
Digitization here does not mean one technology. It spans mobile wallets, card-based transfers such as the Mastercard network, and, more experimentally, distributed-ledger and central bank digital currency approaches. The World Bank and MIT explored the technical feasibility of a central bank digital currency in Project Hamilton, while the OECD studied whether blockchain can lower remittance costs and the IMF has modeled how digital money could reshape cross-border flows. Blockchain-based settlement networks, including Ripple and the XRP Ledger, have targeted the same corridors, though their real-world share of remittance volume is still small relative to incumbents. The Financial Stability Board tracks the broader push under the G20 cross-border payments roadmap.
Why this matters
Remittances are a lifeline for millions of families, and the fee charged to move US$200 is money taken directly out of household budgets. The Latin America data shows the direction of travel is digital, cheaper, and faster, but the gap to the 3% target is real. The technology winning market share is not settled, and none of this is a claim about any company’s stock or token. It is a story about payment infrastructure and household cost.
Common questions
How big are remittances to Latin America?
The Mastercard and PCMI report put formal remittance flows to Latin America and the Caribbean at about US$146 billion in 2022, more than double the level of a decade earlier.
What is the largest remittance corridor in the world?
The United States to Mexico corridor is the single largest remittance pipeline in the world, at roughly US$56 billion in 2022 according to the Mastercard and PCMI report.
How much does it cost to send a remittance?
The World Bank’s Remittance Prices Worldwide data put the global average cost of sending US$200 at about 6.62% in the third quarter of 2024. The UN Sustainable Development Goal target is 3% by 2030. Latin America and the Caribbean average roughly 5.9%.
Are digital remittances cheaper than cash?
Generally yes. World Bank data shows digital remittances carry a lower average cost than non-digital, cash-based transfers, which is a major reason the shift toward digital sending matters for families.
Do blockchain networks handle remittances to Latin America?
Some blockchain-based settlement networks, including Ripple and the XRP Ledger, target Latin American corridors, and the IMF and OECD have studied whether digital money and blockchain can cut remittance costs. Their share of total remittance volume remains small relative to established money transfer operators and card networks.
This content is educational only. It is not tax, legal, or investment advice. Check primary sources and speak with a qualified professional before making financial decisions.
