Trendy Tendencias: US & Mexico

Blog following and discussing new trends, specifically in the US and in Mexico.

Tuesday, May 31, 2005

Sending Money Home II

First of all, I'd like to say that if my posts seem somehow lacking a certain "umph" lately, I'm sorry. I'm totally distracted and hope to explain the details on why soon!

I'm just going to revisit one more topic, and hopefully tomorrow I'll start out again with new material. It's not for a lacking of topics, I have a list of probably about 20 things I'd like to discuss, but I'm experiencing some sort of "blogger's block" lately.

I discussed earlier this month the topic of Sending Money Home...and what a big business money transfers from the US to Mexico is. Prices can be up to $16 or more per transaction. Well, according to a recent article that I have found, the US Fed is giving the banks a shot at this Mexico money transfer market. Mainstream banks currently receive a REALLY small percentage of this business (3%), and could charge only $4 to the customers making the transfer...and still make a profit. It only costs the US Federal Reserve $0.67 to make the transfer.

There are still problems to overcome such as trust (some fear being deported), and the fact that some banks will require Social Security Numbers (which many people don't have).

Still, it's a huge market, and the prices are ridiculously inflated, and it will be nice to see some cheaper competition come into play.

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