Paysend and Mastercard launch ‘Paysend Libre’ in Mexico
By Gloria Mathias
Paysend and Mastercard have partnered to launch Paysend Libre in Mexico in a move to drive financial inclusion in a region where the majority of the population is still underbanked or unbanked.
The launch brings together the strengths of Mastercard and Paysend in collaboration: Mastercard’s acceptance network and Paysend’s enormous strength in simple, digital remittance transfers between Latin America and the USA.
Paysend Libre allows the sender to initiate the transfer with just the recipient’s phone number by choosing the “Libre” option in the Paysend App. The process, which is zero-fee, generates a virtual Paysend Mastercard to act as a financial tool for recipients who lack a bank account or card. The recipient can directly access the funds received on the virtual Paysend Mastercard and securely spend the funds in real-time.
“Paysend and Mastercard are doing something never done before,” says Jairo Riveros, Group Head of Strategy and MD of the Americas at Paysend. He continues, “Through Paysend Libre, we are using remittances as a vector for widening financial inclusion, bringing more and more people into the financial ecosystem who were previously ignored by FinTechs and financial institutions.”
“As people increasingly favour digital solutions to send money quickly and securely, we are committed to working with partners like Paysend, who share a drive for payment innovations that also advance financial inclusion,” said Kiki del Valle, Division President, Mastercard North. “With a Mastercard virtual card, people will be able to instantly participate in the digital economy, quickly accessing the funds they need and making payments at more than the 100 million merchant locations worldwide that accept Mastercard.”
The societal and economic significance of Paysend Libre will be enormous. Remittances to LATAM serve as a safety net for millions, and immigrants are a lifeline for their loved ones back home, many of whom still rely on cash. In Latin America and the Caribbean, 70% of the population is unbanked or underbanked (according to the Interledger Foundation) while living in some of the largest recipient countries for remittances. In particular, the USA to Mexico corridor remains one of the largest remittance corridors in the world, with $65 billion being sent just in 2023, primarily in cash.
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