The US Mexico money transfer corridor is, by many measures, the largest in the world. It catered for 13 million migrants, according to data released back in 2014, and data from the same period shows that the US is the largest sender of remittances globally, with Mexico the fourth largest receiver globally.
No wonder then that Spain’s second largest bank, BBVA, has launched a new money transfer app to try to claim a slice of the US to Mexico money transfer market; estimated to be worth $73 billion per annum, with the average US based migrant sending around $1,900 home to Mexico every year.
Tuyyo; the name is an amalgamation of “tu y yo”, meaning you and I in Spanish, only permits users based in the US to make transfers to Mexico but additional services catering for other South American destinations are expected soon.
Recipients can access the funds sent by remitters within minutes of the transfer being completed; they either receive the funds direct to their bank accounts (provided the bank has a relationship with BBVA) or pick up the funds from a Bancomer ATM or a designated pick up location; there are tens of thousands available, and recipients do not require either a bank card or even an account to take advantage of the service. A code is given to receivers by Bancomer staff that enables them to withdraw cash from an ATM without a card once they have confirmed their identity.
In terms of fees and charges, Tuyyo is making every user’s first transfer fee-free, meaning they only pay for the exchange rate spread. After the first transfer, the fee is $5.49 plus FX rate. For comparison purposes, TransferWise charges a fee of $3 as well as 1% of the entire transaction value.
BBVA is a fintech friendly bank that has embraced digital disruption. As well as owning over a quarter of British Challenger bank Atom bank, BBVA also acquired mobile banking app Simple for $117m in 2014.
As such, BBVA understands that modern consumers are motivated to switch to newer, more agile service providers, which are also perceived to be more customer focused, and more in tune with millennial style, fintech inspired financial services.
Tuyyo’s website address, for example, is tuyyo.love, a nod to users of the remittance industry, which is strongly correlated with close family ties and looking after loved ones.
As Derek White, Global Head of Customer ands Client Solutions for BBVA said at the launch of the app back in September last year: “People feel a strong sense of duty to help out their families; “This is one way to say, ‘We still love you even if we can’t be together right now.’”
Tuyyo enables its users to add personalised messages to their money transfers and even add images and pictures, meaning each transfer can have a social as well as a financial impact.
Money transfer apps are becoming increasingly prevalent and an efficient way to send money overseas, considered by the World Bank backed Remittance Prices Worldwide to be currently the most cost effective solution available. Alternative services include World Remit, Azimo, Remitly and Revolut; for a fuller guide click here.
Banks collaborating with BBVA to accept transfers from Tuyyo include Bancomer, Banorte, Bansefi, Elektra, and Bancoppel. Sign up is free and the app is available from Google Play and the App Stores.
This content is sourced and brought to you by The Money Cloud – comparing the best rates for sending money overseas offered by hand-picked, regulated brokers and money transfer agencies.