In June 2025, remittances to Mexico dropped by a staggering 16.2% year-on-year, falling from approximately US $6.2 billion in June 2024 to just US $5.2 billion—the steepest monthly decline in over a decade. This marks a continuation of a downward trend: through the first half of 2025, remittances totaled around US $29.6 billion, down roughly 5.6% from the previous year.
Why Remittances Are Falling
Analysts cite several overlapping causes for this sharp drop:
- Fear of Deportation and Tighter U.S. Immigration Policies – Increasing raids and enforcement measures have made Mexican migrants in the U.S. apprehensive about leaving home or work, leading to fewer remittance transfers.
- Weaker U.S. Job Market for Migrants – Employment opportunities for Mexican workers in the U.S. appear to be declining, either from reduced demand or reluctance to participate in the labor force.
- Stronger Peso Reducing Purchasing Power – As the peso gains value against the dollar, remittances in dollar terms translate into fewer pesos—particularly impactful as families rely on that exchange for daily expenses.
- Emerging U.S. Remittance Taxes – Proposed legislation aims to tax remittance flows, such as a 1% levy on cash transfers, which critics argue unfairly penalizes migrant workers and could push remittance channels underground.
These factors converge to weaken a critical lifeline: remittances have long accounted for 3–4% of Mexico’s GDP, providing essential support for millions of households—particularly in rural or low-income areas.
A Renewed Strategy: Streamlining Cross‑Border Payments via SOFOM + International Bank
To reconnect families safely and efficiently, there is a powerful model emerging: pairing cross‑border payment processors—anchored by an international bank licensed in Puerto Rico—with a SOFOM in Mexico.
Why This Collaboration Makes Sense
Component | Strengths & Benefits |
Puerto Rico–licensed international bank | Operates under U.S. regulations with robust compliance capabilities and strong operational infrastructure for managing cross-border dollar flows. |
Mexican SOFOM (Sociedad Financiera de Objeto Múltiple) | Offers agility to deliver financial services inside Mexico—such as lending, credit, and payments—while navigating local rules with expertise. |
What the Partnership Delivers
- Secure and Transparent Funds Movement – Trusted, compliant transfers from Puerto Rico into Mexico’s financial system via the SOFOM.
- Lower Costs and Reduced Risks – Digital transfers minimize reliance on cash or informal channels, reducing risk tied to deportation fears, immigration enforcement, and taxation.
- Enhanced Access for Recipients – SOFOMs provide faster, more affordable access to funds in underserved communities.
- Regulatory Confidence and Dual-Market Strategy – Alignment with both U.S. and Mexican regulations provides stability and credibility.
- Catalyzing Economic Stability – Reliable remittance flows sustain household resilience and broader economic health.
Bridging Hearts and Wallets: A Path Forward
Remittances are more than money—they’re a vital bridge between loved ones. Today’s challenges—from migration policies to currency fluctuations and proposed taxes—demand innovation to preserve these lifelines.
By linking a regulated, U.S.-style infrastructure in Puerto Rico with an agile, locally compliant SOFOM, cross‑border payments can regain efficiency and resilience. This structure not only protects families, but also strengthens trust and stability in the flow of much-needed funds.
Take the Next Step
If you’re ready to explore how this model can reinforce financial connections between the U.S. and Mexico, contact us today. We specialize in designing and implementing non‑bank financial solutions—including SOFOM structures integrated with international banking—to restore and amplify remittance channels with compliance, security, and scalability.