Colombia is in the middle of a financial transformation. According to the Bank of the Republic, incoming money transfers, also known as remittancesan impressive 10% have grown on an annual average since 2021. They exceeded US $ 10 billion in 2023. The same data tell us that the country reached a new milestone last year. The number of Colombians who receive remittances doubled from just under 1 million in 2016 to more than 2.1 million in June 2024.
Remittances are not just a matter of numbers. Behind each money transfer there is a story: a family that pays for education, a mother who saves for the future of her children, a rural businessman who launches a small business. This influx of financial support, promoted by a growing Colombian diaspora, is rewriting how cross -border support is seen. Digital wallets have a vital role to play.
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These applications are attractive because they go beyond facilitating money transfers. They allow consumers to save, Make pays and even invest, all from the comfort of your mobile device.
Digital wallets are redesigning the way consumers access essential financial services. This is particularly true for those who are not bankrupt.
The impact of digital wallets is particularly deep in rural regionswhere traditional financial infrastructure can be limited. In these areas, digital channels are fundamental.
Personal finance
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By providing fluid and accessible channels for money transfers, digital wallets allow these communities to access vital resources. Its accessibility means that more consumers can participate in the formal financial system. However, barriers persist for broader acceptance.
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Almost 40% of Colombian households lack reliable internet connectivity, especially in remote regions where remittances are usually more critical. Besides, Many lack skills or confidence to navigate on digital platforms. Overcoming these obstacles requires a multifaceted approach, which includes investments in digital infrastructure, financial education programs and initiatives to generate trust and empower consumers.
The change towards digital remittances is more than a simple technological tendency: It is an engine of economic growth. Remittances already represent approximately 2.8% of Colombia’s GDP. Digital wallets can amplify this impact by unlocking opportunities in trade, entrepreneurship and essential services. They are also a vital part of Colombia’s broader impulse to digitize their economy and include everyone, regardless of their financial situation or location.
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In Western Union, we are proud to be part of this transformation. By offering money shipments from the outside to digital wallets such as Nequi, Daviplata, Dale, Tpaga, Payvalidwe are creating integrated multichannel solutions that meet various needs.
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However, the true driving force behind this transformation is people. Consumers are not only adapting to digital tools, but are adopting them as a way of taking control of their financial future.
It has been reported that Colombia is emerging as a leader in the digital revolution of Latin America. The country’s trip is undoubtedly a history of progress, resilience and innovation. The rise of digital wallets is not only remodeling remittances, but also laying the foundations for a more inclusive and equitable economy. As the nation advances, these digital solutions will connect more people through borders, releasing potential and promoting prosperity for coming generations.
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In this digital era, remittances are no longer about sending And receive money: it is about building futures, promoting resilience and promoting progress.
Priscila Nogueira
Director for southern lacquer at Western Union.
