Credit Card Giant MasterCard Aims to Revolutionize Cross-border Transfers to Latin America Using Blockchain Technology
Due to a significant increase in remittances to the region – the total amounting to around 146 billion US dollars in 2022, a doubling within ten years – the company sees an urgent need to optimize the processing of these transactions. Especially since about one in ten Latin Americans receives international remittances, MasterCard emphasizes the potentially transformative impact of a more efficient remittance service on economic growth and poverty reduction.

In a recently published white paper, MasterCard discusses the hurdles to broader acceptance of digital transfers. These include limited access to transferred funds, long distances to the nearest payout location, and a patchy digital infrastructure. At the same time, the report indicates that the use of digital transfer methods is increasing where such obstacles are being removed. Blockchain technology, represented by players like MoneyGram and Binance, is seen as a key to improving the situation on the ground.

To Promote the Introduction of Blockchain Transfers in Latin America, MasterCard Proposes a Series of Measures: Flexibility in the Use of Transferred Funds, Improvement of Transaction Transparency and Security, Utilization of Digitized KYC Tools to Speed Up Onboarding, and Customer Retention Through Reward Programs. Additionally, the Company Emphasizes the Importance of Educating About the Benefits of Digital Transfer Methods for Everyday Life.

Despite the positive outlook and obvious potential, challenges still need to be overcome to ensure the full implementation and acceptance of this technology in Latin America. However, MasterCard remains confident that the planned initiatives will make a significant contribution to increasing financial inclusion and promoting economic prosperity in the region.