According to the latest Western Union earnings report, The company reported significant growth in global remittance transfers during 2024.
(See: Money transfers from Colombians abroad to the country grew 10% in the first quarter)
As they mention it, This increase is mainly attributed to the rise of digital transactions, which grew by 13% in the first quarter of the year and represented 31% of all user movements during this period.
According to a study by the consulting firm Bain & Company, it is projected that the adoption of electronic payments in Colombia It will reach 10% by 2026 and 11% by 2027.
In addition, a 9% increase in income generated by these payment methods in the region is expected, reaching US$35 billion by 2026. “This would represent a higher growth rate compared to Europe (4%) and North America (6%)“they claim
(Read: ‘Colombia, the third destination for remittances in the region’)
“Over the last year, remittances have represented a significant source of income in Colombia, serving as vital support to cover basic household expenses. These funds help pay for food, housing, utilities, debt, healthcare, and education.“said Mauricio García, vice president of Western Union for South America.
Furthermore, he pointed out that “These resources are also used for the creation of new projects, the purchase of properties, travel and medical treatments, among other uses“.
(See more: 26% of total remittances arrived in Valle del Cauca in 2023)
February was the month with the highest revenues, reaching US$913.93 million.
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According to the Bank of the Republic, the country has received remittances totaling US$2,720.77 million so far in 2024, reflecting an increase of 9.88% compared to the same period last year.
(Read more: Remittances at Easter, a boost for trips and family reunions)
The report highlights that February was the month with the highest income, reaching US$913.93 million and registering an increase of 9.76% compared to the same month of the previous year. These remittances come mainly from the United States (53%), followed by Spain (13%), Chile and the United Kingdom, the latter with 4%, respectively.
“These results underline the importance of remittances in the national economy and emphasize the need to continue implementing strategies for financial connectivity in the country. This involves developing various options that facilitate efficient transfers and instant payments for users, companies and financial institutions.“García emphasized.
(See also: The reasons for the good moment for the remittance market in Colombia)
Following this trend, the company projects that the adoption of these channels will continue to grow in the coming years, anticipating that they could reach 10.7 million users worldwide by 2027.
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