Brazil’s Remittance Market Lacks Full Transparency
Wise reveals that Brazil’s 2022 “VET” law—which mandates fee disclosure—fails to enforce the use of mid-market exchange rates. This loophole allows providers to advertise “zero fees” while embedding markups directly in opaque rates. Investigations found that most Brazilian remittance services do not fully disclose foreign exchange markups.
- Globally, an estimated US$228 billion is lost annually to hidden fees.
- Remittance from Brazil averages a steep 7.61% cost—second highest among G20.
- Institutions like the World Bank call on Brazil’s central bank to require full fee transparency including FX markups, to foster competition and help meet UN’s goal of <3% remittance costs by 2030.
DogPay: Painting Transparency into the Future of Cross-Border Payments
In response to the global—and particularly Brazilian—challenge of opaque remittance costs, DogPay champions full visibility and fair access through:
- Total Cost Transparency Every fee and the applied exchange rate are disclosed before sending, allowing full cost tracking.
- Standard Use of Mid-Market Rates DogPay uses the verifiable mid-market rate, with any markup clearly noted as a line item—not hidden.
- Empowerment Through Market Competition By aggregating transparent options, DogPay gives users the power to choose the most cost-effective transfer routes, driving industry-level competition.
- Aligned with Global Fairness Goals DogPay supports UN-aligned transparency objectives, striving to make remittances both affordable and trustworthy worldwide.
