Remittances to many areas of Latin America are increasing by double digits, and the region is on pace to see $161 billion transferred from the U.S. before the year is out, Bloomberg reported Tuesday (Sept. 30). That’s an 8% year-over-year increase.
The President Donald Trump administration’s mass-deportation campaign, which has impacted over 180,000 people so far this year, has left many migrants worried they’ll be sent home, according to the report. That’s driving an effort to make sure their money is protected if they are deported.
Among them is a 23-year-old, who had been pooling his money with relatives to support his family in Honduras, the report said. After his stepfather was detained earlier this year, he wired money to his bank account in Honduras in case the same thing happened to him.
While remittances to category leader Mexico are slowing, countries such as El Salvador, Guatemala and Haiti are poised to get nearly 20% more than last year, according to the report. Honduras has those countries beat, with remittances up 25% compared to the first eight months of 2024.
While administrations and policies come and go, remittances are a constant, with workers around the world sending money home to friends and family to help pay for living expenses, medical needs or tuition.
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Remittances to low- to middle-income nations such as India, Mexico and the Philippines climbed nearly 6% in 2024 to reach $685 billion, according to The World Bank.
As PYMNTS CEO Karen Webster said during an interview with Remitly CEO Matt Oppenheimer in May, “There’s a grit and tenacity to find employment regardless of where it is, even in an uncertain environment.”
With that tenacity comes the need to send money across borders.
Oppenheimer said Remitly “originates” payments from 30 countries where individuals send transfers. The largest receiving countries are Mexico, India and the Philippines, but the non-top three countries grew by 45% in the second quarter of the year and accounted for most of Remitly’s sales, topping $1 billion annualized (first-quarter sales grew by 34% year over year).
