US-based fintech Felix Pago has announced a partnership with Mastercard aimed at expanding its digital remittance services in Central America. The startup, known for its chat-based platform that uses blockchain and artificial intelligence to facilitate remittances via WhatsApp, plans to introduce its services in El Salvador, Honduras, Guatemala, and the Dominican Republic.

The collaboration will allow Félix Pago to leverage Mastercard’s payment infrastructure to support these services in regions where financial access has traditionally been limited. In 2023, remittances from the United States to Latin America totalled USD 155 billion, with Mexico receiving USD 67 billion, Guatemala USD 17 billion, Honduras USD 8 billion, the Dominican Republic USD 6 billion, and El Salvador USD 4 billion. Data from Mastercard indicate that remittances are crucial to Central American households, with one in four families in the region relying on these funds to help stay above the poverty line.

Expanding financial inclusion Officials from Félix Pago emphasised that the company’s expansion through Mastercard addresses the demand for secure and accessible money transfers across Central America. They noted that the partnership will enable the introduction of a range of financial products and a card issuance programme, aiming to meet the needs of both senders and recipients in the region. Félix Pago’s service enables users to send money directly through a chatbot on WhatsApp.

Senders can communicate the amount and recipient details via text or voice message, completing the transaction by entering their debit card information. Funds can be collected by recipients in local currency through bank deposits, cash at select stores, or through cards enabled by the Mastercard partnership. Representatives from Mastercard remarked that this collaboration is part of Mastercard’s mission to increase financial inclusion.

By supporting Félix Pago’s operations, Mastercard aims to provide senders and receivers with a streamlined, secure method for digital remittances, contributing to the accessibility of the digital economy. Integrating blockchain and stablecoin technology On the back end, Félix Pago employs blockchain technology to enhance transaction speed and security. The platform relies on Circle's USDC stablecoin to minimise currency exchange costs, resulting in lower transaction fees than traditional SWIFT payments.

Mastercard joins Félix Pago’s expanding network of strategic partners, which includes companies such as Nubank, Mercado Pago, Intermex, and Uniteller. Founded in 2021, Félix Pago has grown across the US and Mexico, securing USD 23.3 million in funding from investors such as Castle Island Ventures, Switch Ventures, and HTwenty Capital Innovation. .