Western Union Data For Transfers To Cuba: 2.88 Million Annually- 24% To Havana; Florida 1st, Texas 2nd, New Jersey 3rd; US$200,000+ Could Be Aboard Each Flight From Miami
/“Every month, Cubans in the U.S. send more than 240,000 unique transfers into Cuba using formal money transfer channels.“- Western Union Company
2.88 million annual transfers will cease on 22 November 2020 unless the Republic of Cuba shifts control of the in-country partner of Western Union Company, Fincimex, to a non-military-controlled entity.
If each transfer is US$300.00 (Western Union Company’s published global average for all C2C sends), then the total annual value of transfers would be US$864 million- or US$72 million per month or US$2.4 million per day. There are unofficial estimates suggesting an average transfer of nearer to US$500.00. The U.S.-Cuba Trade and Economic Council estimates Western Union Company transfers annually to the Republic of Cuba of approximately US$900 million to US$1.5 billion.
Absent Western Union Company services, the US$2.4 million per day would likely be transported from the United States to the Republic of Cuba using paid “mules” aboard regularly-scheduled commercial flights. With a current approximately twelve daily 150-passenger aircraft flights from Miami International Airport (MIA) to Jose Marti International Airport (HAV), that would suggest a possible US$200,000.00 or more aboard each flight.
From Western Union: “The closure of airports and the termination of flights in a pandemic world limits these methods of transfer through these mules. The current formal channels provide a safe, secure, and guaranteed method to deliver much-needed dollars directly into the hands of Cubans.”
Western Union Company
Denver, Colorado
19 November 2020
U.S. CUBA MONEY TRANSFER FACTS – AS NOVEMBER 18, 2020
US to Cuba Flows
In the absence of Cuban Central Bank data, independent researchers estimate total remittances sent from the U.S. to Cuba between US$2 billion to US$4 billion per annum. An estimated equal amount is reportedly channeled through informal channels, some carrying it on behalf of family and friends and others surcharging premium rates to assure safe passage. vi Approximately 50% of transactions are estimated to flow through formal channels and 50% through informal channels.
Every month, Cubans in the U.S. send more than 240,000 unique transfers into Cuba using formal money transfer channels. vii Unique transfers do not equate to customers; a single customer may send multiple transactions in a month. vii On an annual basis, there are more than 2,880,000 transfers from the United States to Cuba. vvi Western Union has previously reported the global average for transfers is US$300.00. vii For each pay-in-store transaction, the outlet receives a percentage of the fee and the in-country distribution partner receives a percentage of the fee.
Top U.S. States sending to Cuba
1. Florida
2. Texas
3. New Jersey
4. Nevada
5. New York
6. California
7. Kentucky
8. Nebraska
9. Arizona
10. Georgia
Major Receive Provinces and % of Formal Remittances Received viii
Artemisa- 6%
Camaguey- 6%
Ciego de Avila- 7%
Cienfuegos- 4%
Granma- 3%
Guantanamo- 3%
Holguin- 6%
Isla de la Juventud- 1%
La Habana- 24%
Las Tunas- 3%
Matanzas- 7%
Mayabeque- 4%
Pinar del Rio- 6%
Sancti Spiritus- 4%
Santiago de Cuba- 7%
Villa Clara- 7%
Western Union 407 Agent Location Breakdown by Province ix
Artemisa- 26
Camaguey- 25
Ciego de Avila- 29
Cienfuegos- 17
Granma- 13
Guantanamo- 14
Holguin- 23
Isla de la Juventud- 5
La Habana- 96
Las Tunas- 14
Matanzas- 29
Mayabeque- 18
Pinar del Rio- 26
Sancti Spiritus- 16
Santiago de Cuba- 27
Villa Clara
Demographics
U.S. Cuban Senders i Nearly half (48%) of all Cuban American families send remittances to relatives in Cuba. The most recent arrivals are the most likely to send remittances while the older population group and the pre-1995 migrants are the least likely to send money to relatives on the island.
Age
Cuban Americans aged 40-59 are most likely to send remittances to relatives in Cuba.
Cuban Receivers ii
Approximately 70% of Cubans living in South Florida have relatives living in Cuba. Unsurprisingly, a higher percentage of those who migrated since 1995 (84%) have relatives left behind. The South Florida Cuban-American community is developing into a true transnational diaspora. Despite the recent travel restrictions, many families have experienced the migration of one or more of their members.
Reasons for Sending Money to Cuba
The economy and health care remain the two most important issues for Cuban Americans. iii
Additionally: food, rent, and other expenses or supports micro-businesses iv Regardless of when the respondents left Cuba, the economy edges out health care as the most important issue for Cuban Americans in South Florida. v
i Source: pg. 28 FIU Study, 2020, Steven J. Green School of International and Public Affairs
ii (Source: pg. 24 FIU Study, 2020, Steven J. Green School of International and Public Affairs)
iii (Source: pg. 4 FIU Study, 2020, Steven J. Green School of International and Public Affairs)
iv (Source: Western Union internal data used on blog/customer letter, 11/13/20)
v (Source: pg. 30, FIU Study, 2020, Steven J. Green School of International and Public Affairs)
vi FIU 2016
vii Western Union
viii Western Union
ix Western Union
LINKS TO PREVIOUS RELATED POSTS
Cuba Has Options To Retain Western Union Electronic Remittance Services- Transfer To A Bank?
