Cash to Family, Faster and Cheaper: Coinme Rewrites the Remittance Rulebook

The international remittance market represents one of global finance’s most consequential yet inefficient systems. For millions of immigrants sending financial support to families abroad, traditional money transfer services extract substantial costs through fees and exchange rate margins. Within this landscape, cryptocurrency infrastructure offers potential solutions to longstanding friction points—particularly for cash-based remittance flows from the United States to Latin America.

Coinme, under Neil Bergquist’s leadership, has positioned its extensive physical-to-digital currency network as a strategic alternative within this critical financial corridor. Their approach addresses structural inefficiencies through technological innovation while remaining accessible to cash-preferred consumers.

The Remittance Landscape: Scale and Structural Inefficiencies

The magnitude of cash transfers from the United States to Latin American countries represents a significant economic force. “There’s $50 billion a year of cash that’s sent from the United States to Latin America, and that’s cash to cash, which is surprising,” notes Bergquist. This substantial flow predominantly occurs through traditional money transfer operators charging fees that can substantially reduce the value received by recipients.

The World Bank consistently reports that remittance costs remain stubbornly high—the global average for sending $200 internationally hovers above 6% of the transfer amount. For cash-based transfers, these costs frequently escalate further, creating disproportionate burdens on those with limited financial resources.

Traditional remittance channels present multiple friction points: high fees, unfavorable exchange rates, limited operating hours, and delayed settlement timeframes. These inefficiencies persist partly because many senders and recipients operate primarily or exclusively in cash economies, limiting their ability to access potentially more efficient digital alternatives.

Cryptocurrency as Remittance Infrastructure

Blockchain-based payment systems offer inherent advantages for cross-border value transfers. By operating on globally distributed networks without centralized intermediaries, cryptocurrencies can potentially reduce costs while accelerating settlement.

“Well, now you can put that cash into a Coinme location, get crypto and send that anywhere faster and cheaper than a lot of existing solutions,” Bergquist explains. This represents cryptocurrency’s practical utility beyond speculative investment—serving as functional infrastructure for essential financial flows.

The technical properties of cryptocurrency networks provide advantages specifically relevant to remittance use cases. Transactions can execute 24/7 without banking hour limitations, settlement occurs within minutes rather than days, and blockchain verification eliminates chargeback risks that contribute to traditional providers’ fee structures.

Physical-Digital Bridge: Meeting Users Where They Are

Coinme’s distinctive approach to remittances centers on creating accessible physical on-ramps for cash-preferred users. Through partnerships with established retail networks, the company has developed extensive geographic coverage that makes cryptocurrency conversions convenient for immigrant populations.

“There is a Coinme location located within roughly 5 miles for 90% of the American population,” Bergquist claims. This reach includes over 6,000 Coinstar kiosks at grocery stores and thousands more MoneyGram agent locations found at local pharmacies.

This distribution strategy aligns with remittance senders’ geographic patterns, as immigrant communities often cluster in specific metropolitan areas. By integrating with retail locations these populations already frequent, Coinme reduces adoption barriers while creating familiar transaction environments.

Technical Innovations: Simplifying Complexity

Beyond physical access, Coinme has developed simplified technical interfaces that address cryptocurrency’s user experience challenges. Many potential users find wallet management, blockchain transactions, and private key security intimidating—particularly those with limited technical backgrounds.

“Anyone who has ever sent bitcoin or digital currency on-chain, I think, can agree that it’s scary,” Bergquist acknowledges. “You’re entering in a 16-character alphanumeric phrase. You’re copying and pasting it into a little box and then you’re clicking confirm. And once you click confirm, there’s no going back.”

To address this complexity, Coinme has integrated wallet functionality directly into its platform, managing technical details behind more familiar interfaces. This approach allows users to focus on the fundamental transaction—converting dollars to digital currency and sending it to recipients—without navigating complex cryptocurrency protocols.

Strategic Partnerships: Expanding the Remittance Network

Coinme has strategically expanded its remittance capabilities through partnerships that enhance both sending and receiving infrastructure. In April 2024, the company announced a collaboration with global digital payments platform CiNKO, specifically highlighting international payment channels to Latin America and the Caribbean.

This partnership demonstrates Coinme’s focus on building complete remittance corridors rather than simply creating sending capabilities. Effective remittance systems require strong off-ramping infrastructure in receiving countries, allowing recipients to convert digital assets to local currency efficiently.

Through CiNKO’s established presence in Latin American markets, Coinme aims to create more comprehensive end-to-end solutions that address both sides of the remittance equation. This approach acknowledges that sender convenience alone cannot drive adoption without corresponding recipient infrastructure.

Regulatory Considerations: Compliance and Innovation

The remittance sector operates within complex regulatory frameworks designed to prevent money laundering and terrorist financing. These requirements create compliance obligations that cryptocurrency companies must navigate—particularly when handling cash transactions.

“Coinme prides itself on setting the industry bar when it comes to our focus on regulatory rigor and compliance,” Bergquist emphasizes. “As governments pay more mind to crypto and provide more regulatory clarity, we embrace this as part of our customer relationship.”

This compliance-focused approach represents both a philosophical stance and a competitive advantage. By obtaining money transmitter licenses and implementing robust Know Your Customer (KYC) procedures, Coinme has built the regulatory foundation necessary for sustainable operation in financial services.

While some cryptocurrency proponents advocate for completely decentralized, permissionless systems, Coinme has chosen a middle path that embraces blockchain technology’s efficiency while operating within established regulatory frameworks. This positioning allows them to serve mainstream remittance corridors without the legal uncertainties facing less regulated competitors.

Market Impact: Efficiency and Inclusion

The potential impact of cryptocurrency-based remittance infrastructure extends beyond individual consumer convenience. By reducing transaction costs, these systems can materially increase the value reaching recipients—often supporting essential expenses like housing, education, and healthcare.

The World Bank estimates that a 5% reduction in remittance costs could generate billions in additional annual value for receiving countries. Through more efficient infrastructure, cryptocurrency-based systems could theoretically contribute to broader economic development goals.

Coinme’s physical network also creates financial inclusion opportunities for underbanked populations who might otherwise lack access to digital financial services. “Coinme reaches these underserved populations by providing easy-to-use and trusted access to crypto with cash,” Bergquist notes. This accessibility has particular relevance for immigrant communities who may face banking barriers but need reliable remittance options.

Future Trajectory: Evolving Remittance Models

Looking ahead, Bergquist sees continued evolution in remittance systems as cryptocurrency infrastructure matures. “We’re fortunate to be on pace to double revenue this year,” he notes, suggesting growing adoption of crypto-based remittance alternatives.

Stablecoins—cryptocurrencies pegged to traditional currencies—present particularly promising remittance applications by addressing the volatility concerns that might otherwise deter risk-averse users. These assets combine blockchain efficiency with value stability, potentially offering an ideal medium for cross-border transfers.

The remittance sector’s future may involve hybrid models that leverage both traditional and cryptocurrency infrastructure, with platforms like Coinme serving as bridges between established financial systems and emerging digital alternatives. Such integrations could gradually transform remittance economics while remaining accessible to diverse user populations.

As cryptocurrency infrastructure continues developing globally, particularly in emerging markets that represent major remittance destinations, the efficiency gains could become increasingly pronounced. The key determinants will likely be regulatory frameworks, user experience refinements, and liquidity development in receiving markets.

Through its focused approach to the U.S.-Latin America corridor, Coinme demonstrates how cryptocurrency can address specific financial pain points rather than simply disrupting for disruption’s sake. This practical implementation of blockchain technology creates tangible benefits for populations who have historically been underserved by traditional financial systems—fulfilling cryptocurrency’s promise of greater financial accessibility and efficiency.