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Demand for card, app to send money back to Mexico skyrockets after U.S. changes tax rules

Mexico presents a card and mobile app for Mexican citizens in the United States to send money back to family and friends.
Juan Carlos Buenrostro/Presidencia
Mexico presents a card and mobile app for Mexican citizens in the United States to send money back to family and friends.

Mexico is promoting a government card and accompanying mobile app that allow immigrants in the United States to send money back to family in Mexico, as well as pay into the country’s social security system.

The head of Mexico’s department of financial wellbeing says demand for the cards has skyrocketed over the past few months at consulates in the United States, causing some to run out of cards.

Mexico says the app has the most competitive exchange rate of any remittance service.

As part of Republicans’ spending and tax bill passed this summer, some remittances sent through private services like Western Union and MoneyGram are now also taxed at 1%.

The app also lets Mexicans living in the United States pay into Mexico’s social security system so they can receive government pensions.

More news from KJZZ's Hermosillo Bureau

Nina Kravinsky is a senior field correspondent covering stories about Sonora and the border from the Hermosillo, Mexico, bureau of KJZZ’s Fronteras Desk.