Introduction to the Issue
The tightening of immigration policies in the United States is negatively affecting remittances sent to Mexico, according to experts from the WhatsApp-based remittance platform, Zapp.
Expert Insights
José Luis Orozco, CEO and co-founder of Zapp, explained that migrants are facing a growing sense of insecurity when transferring money to their families, which has altered the frequency of transfers and remittance dynamics.
Survey Results
Zapp released the results of their survey titled “When Fear Hinders Remittances to Mexico,” highlighting that economic and emotional commitment to families in their home countries remains strong among working Mexicans.
However, Orozco noted that due to the new measures, workers in the US are asking someone else to make transfers for security reasons.
Key Survey Findings
- 67% of respondents acknowledged that the new policies have affected their income.
- 74% of users reported spacing out remittance transfers in recent months.
- 27% of respondents stated no changes in transfer frequency or amounts.
- 28% expressed high concern about sending remittances due to new US immigration policies.
- 39% reported some concern when sending money due to fear of immigration authorities.
Latino Stores as a Source of Risk
One surveyed individual admitted concern about sending remittances from Latino stores, as these locations pose a higher risk of raids and potential detention.
A remesadora is a licensed and regulated company for international money transfers to Mexico, often run by Latinos.
Since May, Valerie Angelkos, Zapp’s spokesperson, predicted in an interview that emisores would seek alternative methods for sending money due to the proposed US Congress tax.
Some interviewed users emphasized that WhatsApp transfers limit their exposure to raids.
Zapp: A Non-Traditional Remittance Platform
Zapp is not a traditional remittance company but operates through regulated financial entities as a digital platform or interface. It provides users with necessary information to securely send money via a direct link from the company’s official website.
Key Questions and Answers
- What is Zapp? Zapp is a technology platform that facilitates secure digital remittance transfers to Mexico.
- How have new US immigration policies affected remittances? The stricter policies have caused migrants to feel insecure, leading to changes in transfer frequency and dynamics.
- What percentage of survey respondents expressed concern about sending remittances? 28% of respondents showed high concern, while 39% reported some level of worry due to new immigration policies.
- Why are Latino stores considered high-risk for remittance transfers? These stores may have a higher likelihood of raids, increasing the risk of detention for remesadores.
