In 2023, Mexican migrants working in the United States sent an impressive $63 billion back home to friends and relatives, marking a more-than 7 percent increase from the previous year, according to The Associated Press. This money, known as remittances, is crucial for supporting families and communities where job opportunities are scarce.
It’s an economic lifeline for many, yet the process isn’t always as smooth as it should be. Traditional methods of sending money, like through Western Union, come with high fees that eat into these hard-earned funds.
Prósperos.ai, a new financial technology company, has begun offering a solution by providing transfers that are 80 percent to 90 percent cheaper than most options available.
Salvador Chavez, one of the founders of Prósperos and a former vice president of engineering for Bill.com, has a long history of community-focused initiatives. While at Bill, Chavez founded and led the program Adelante, aimed at giving low-income, first-generation students access to engineering internship opportunities within the company.
Chavez also played a key role in creating the award-winning film Campesinos: America’s Unsung Heroes. The film highlights the essential — yet often overlooked — contributions of farmworkers in the U.S. It shows their daily struggles and advocates for better recognition and improved working conditions.
Chavez, the son of immigrant parents, was driven by what he said was a mission to “give Latinos better opportunities.” He realized that no one in the financial sector was offering solutions to Latinos working in farm labor and trades – so, he and his co-founder, Vinay Pai, started Prósperos.
“My father was a farmworker in Fresno,” said Chavez. “He worked in extreme weather conditions, and when it came time to send money to my mother in Mexico, he was charged 8 percent to cash his check and another 5 percent to send money back home. The money that was left over, he put under his mattress, and it was often stolen.”
This experience motivated Chavez.
“The idea is to help Latino communities which are often underserved and overlooked,” he said.
Prósperos is changing the game by drastically reducing these costly fees. The company works directly with employers to provide a simple and affordable way to send money home. When an employer partners with Prosperos, they can transition their workforce to direct deposit, streamline their payroll and save thousands of dollars. Their employees receive a bank account and a Mastercard that can be used for various financial tasks, including money transfers to their families in Mexico.
Sending money internationally often involves high fees and hidden charges. These fees can take away a significant portion of the money being sent, reducing the amount families actually receive.
For migrant workers, every dollar is important, and these fees add up quickly.
The process of using Prósperos is easy and straightforward. Once an employer signs up with Prósperos, the employees get a Mastercard from an FDIC insured bank. Another card is sent to the employee’s family in Mexico. This setup allows direct transfers between the two cards via the Prósperos app, a substantially more affordable option by avoiding traditional remittance services and their fees.
Users can also deposit their paychecks into their Prósperos account and use their Mastercard for daily expenses. When they want to send money home, they simply transfer funds from their card to their family member’s card. The family member in Mexico can then withdraw cash from ATMs using their card or use the card anywhere Mastercard is accepted.
“Users can save up to $1,000 per year by using Prósperos.” said Chavez. “Our fees equate the amount it would cost you to purchase a coffee and a breakfast burrito once a month.”
Employers benefit too by offering an attractive perk to their employees, which can help with recruitment and retention. Additionally, employers save money by no longer needing to print paper checks, and any payroll mistakes can be easily and quickly corrected via direct deposit.
“Employers that have 1,000 employees can save up to $75,000 per year when eliminating paper checks,” said Chavez.
Signing up for Prosperos is simple. Employees provide a few key pieces of information, including a Matricula or state identification, a selfie for identity verification, and the name and address of their family in Mexico. A Matricula is an identification card issued by Mexican consulates to Mexican nationals residing outside of the country. It serves as an official ID and is widely accepted for various purposes.
While the idea behind Prosperos is simple, it tackles a significant problem that has often been ignored: the high cost of wire transfer fees and the lack of inclusivity in our banking system for farmworkers. By providing a cheaper alternative, Prosperos empowers migrant workers to better support their families financially.
As our world becomes more connected Prosperos is transforming how remittances are handled and setting a new standard in the industry. With its innovative approach, Prósperos is making a significant difference in the lives of many migrant farmworkers and their families.
“When we talk to farmworkers and hand them their own personal Mastercard, we can see the excitement and enthusiasm on their faces,” Chavez said. “They realize that they are now part of the banking system and have overcome a hurdle that has been an issue for far too long.”
David Salazar serves as the 2024 American Farmland Trust Agriculture Communications Intern at AGDAILY, with a focus on helping to amplify diversity and minority voices in agriculture. David is originally from King City, California, and attended the University of California, Fresno, as a first-generation college student. He received a bachelor’s degree in viticulture and enology and has worked in California’s premier wine producing regions.
