Who are the Migrants Sending Remittances?
Migrants traditionally send an additional $50 to $100 each month in May as a gift to their mothers. In Mexico, women, especially mothers of emigrants, are the primary recipients of these remittances. This trend is also evident in digital money transfer formats, such as WhatsApp.
The Impact of Mother’s Day on Remittances
According to a survey conducted by the Zapp platform, May remains the month with the highest volume of remittances due to the so-called “Mother’s Day effect.” Seventy-nine percent of users on this platform send remittances to their mothers in their home countries and provide an additional amount during May.
In May of the previous year, users in the United States sent an average of $360 to their mothers in Mexico for Mother’s Day. Thirty-one percent of respondents stated that their parent used the funds to “buy something nice,” while 40% mentioned sending a physical gift along with the remittance.
One in four users sent a physical gift from the United States, while the rest purchased a digital gift in Mexico for faster delivery.
The Rise of Digital Remittances
In September, a Visa report highlighted that 42% of displaced Mexican workers sending remittances to the country use digital means.
The Visa report “The Money Journey: Adoption of Digital Remittances by 2024” emphasized that seven out of ten users of these digital remittance platforms consider them a faster and more efficient payment method compared to traditional channels.
Traditional Surge in Remittances
Experts from BBVA have found that over the past 20 years, remittances captured during May have increased by an average of 14% compared to the rest of the year. In May 2020, there was a peak of 18%, likely due to concerns about the prevailing health situation in Mexico during the pandemic.
Eduardo Levy, Director of Remittances at Grupo Elektra, mentioned in an interview that workers abroad typically make an extra effort in May to send an additional gift, beyond their usual contribution, to their mothers or spouses staying at home.
A Banco Mundial analysis shows that remittances sent to Mexico usually see a significant increase in May, likely driven by Mother’s Day. However, no similar increases are observed during June, when Father’s Day is celebrated.
Banco Mundial experts, who also have extensive experience reporting and analyzing migration flows and remittances, noted a substantial increase in these resources in December, linked to Christmas celebrations.
“Sometimes the money sent is used to compensate for the absence of a key family member,” they mentioned in the Banco Mundial’s blog post titled “Dear mom, happy Mother’s Day!”
Key Questions and Answers
- What is the traditional surge in remittances? In May, migrants traditionally send an additional $50 to $100 as a gift to their mothers, leading to a 14% increase in remittances compared to the rest of the year.
- Why does this surge occur in May? The increase is attributed to the Mother’s Day celebration, with 79% of users on the Zapp platform sending extra funds to their mothers in their home countries.
- How has the use of digital platforms impacted remittances? Forty-two percent of displaced Mexican workers sending remittances to the country now use digital means, considering them faster and more efficient than traditional channels.
- What is the significance of remittances in Mexico? Remittances play a crucial role in the Mexican economy, with women being the primary recipients. The Banco Mundial reports a significant increase in remittances during May, driven by Mother’s Day, and a smaller increase in December linked to Christmas celebrations.
