BBVA has today announced the launch of Tuyyo an m-remittance solution for the US-Mexico remittance corridor that will try to tap a $2,000 million/month flow of money between the two countries.
Tuyyo gives recipients free, 24/7 access to 11,000 Bancomer ATMs, with no need for a bank account or ATM card, eliminating the hurdle of traveling long distances or wating in lines to pick up money. Tuyyo users can expect to access their money within minutes of it being sent.
BBVA is not a newcomer to the digital remittances sector. It operates BBVA Transfer Services (BTS), which has facilitated money transfer services to Mexico since 1995. However, it has not been until today that BBVA has launched an m-remittace service that leverage their foothold in the US and Mexico and that will compete with Xoom (created in 2001 and acquired by Paypal in 2015 in a $1.09 billion deal) and the likes.
Back in 2013 I wrote an article in Visible Banking: m-remittances: the new el Dorado for mobile transfers? There, I pointed out the business opportunity for m-remittances and how the combination of high cost of sending money and new mobile solutions placed the industry in the list of industries to be transformed. I also added:
"I wouldn´t be surprised if BBVA any time soon connected BBVA Compass mobile app with BBVA Bancomer Dinero Móvil service to seize more of the almost $2 billion in remittances that every month Mexico receives in electronics transfers."
m-remittances: the new el Dorado for mobile transfers?
If the business opportunity was so clear (at least to me), why took BBVA so long to launch an m-remittance solution?