MEXICO CITY, Mexico--Digital remittances from the U.S. to Mexico have overtaken cash for the first time, marking a significant shift in the world’s largest remittance corridor and underscoring how quickly cross-border payments are moving toward app-based and account-linked transfers, according to several news outlets.
Bloomberg, in a report also republished by the Los Angeles Times, said the change occurred in 2025, citing data from Mexico’s central bank, Banco de México.
The milestone comes as policy changes and consumer behavior are accelerating the move away from cash. Bloomberg reported that digital transfers are gaining share as migrants increasingly use mobile-first and lower-friction services rather than traditional cash pickup models, with the shift illustrated by consumers moving from in-person outlets to app-based offerings such as WhatsApp-enabled remittance tools.
The timing is notable for financial institutions because the digital transition follows the Jan. 1 launch of a new U.S. 1% tax on remittances sent in cash, money orders and cashier’s checks, while transfers funded through bank accounts and debit or credit cards are exempt, according to recent coverage by Mexico News Daily citing BBVA Research and Banxico data. Mexico News Daily also reported earlier this month that January remittances to Mexico totaled $4.594 billion, down 1.4% year over year, even as electronic channels dominated the mix.
For credit unions, banks and payments providers, the takeaway is that Mexico’s massive remittance market is becoming increasingly digital even amid softer overall flows, creating more pressure—and opportunity—around real-time cross-border payments, mobile wallets, lower-fee digital rails and card- or account-funded transfer models. The long-running cash-heavy model in the U.S.-Mexico corridor is now being structurally displaced, not just supplemented, according to he Bloomberg/Los Angeles Times reporting.