Miami-based fintech startup enabling Latino workers in the US to send money back to their families in Latin America via WhatsApp, Félix Pago is expanding its services to El Salvador, Honduras, Guatemala, and the Dominican Republic following a new partnership with payments giant, Mastercard.
Félix Pago uses blockchain and artificial intelligence (AI) to power its chat-based platform which makes financial services more accessible for those in historically underserved regions. The person sending the money tells the chatbot on WhatsApp, either in writing or by voice note, how much money they want to send and to whom. Only in the last step does the sender click on a link to securely fill in their debit card details.
On the receiving end, the money can be instantly cashed out in local currency as a bank deposit, in cash at a store, or, thanks to the partnership with Mastercard, also by card.
Remittances from the United States to Latin America reached $155billion in 2023. According to Mastercard’s data, one in four families in Central America depend on remittances from family members in the United States to keep them above the poverty line. Mexico led the industry with $67billion, Guatemala with $17billion, Honduras with $8billion, the Dominican Republic with $6billion, and El Salvador with $4billion.
Félix Pago uses blockchain to bring greater security and speed to users of both companies. It also uses Circle‘s USDC stablecoin to save on currency exchanges, translating into more affordable transactions for senders. This makes fees much lower than SWIFT transactions, which are also slower.
Utilising cryptocurrencies
Manuel Godoy, CEO of Félix Pago
“Félix Pago’s presence in the region addresses a critical need for reliable, secure, and accessible money transfer services,” said Manuel Godoy, CEO of Félix Pago. “The partnership will deliver an expanded range of financial products and a card issuance program to serve the unique financial needs of both senders and recipients, supporting financial inclusion across Central America.
“Cryptocurrencies are a powerful enabler of remittances, but you have to abstract them from the user. The user doesn’t care. I always say it could be a donkey crossing the border, it doesn’t matter. What they want is the money, the local currency, and they want it instantly and at the best possible price. And cryptocurrencies allow for that.”
Walter Pimenta, executive vice president, commercial and new payment flows, Mastercard Latin America and Caribbean
“Extending the benefits of the digital economy to more people is part of our financial inclusion mission. Mastercard’s collaboration with Felix Pago addresses a real need in today’s digital-first world to expand digital financial services to more individuals, empowering both senders and receivers to have a safe, simple, and secure remittance payments option,” said Walter Pimenta, executive vice president, commercial and new payment flows, Mastercard Latin America and Caribbean.
Mastercard joins Felix Pago’s growing list of prominent allies, including Nubank, Mercado Pago, Intermex, and Uniteller.
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