BBVA has launched a new mobile app called Tuyyo, which will enable consumers to send remittances to recipients in Mexico, according to a press release.

The Initial Tuyyo transfer for a user will only include the FX costs, but be free of any fee. Additional transfers will have a flat fee of $5.49 plus the FX rate applied when sending funds to Mexico.

First-time users in Mexico will have to pay a one-off visit to a BBVA Bancomer branch to verify identify and will be shown how to use the service during that visit after which they have to enter a code into any Bancomer ATM to withdraw their funds, according to the release.

"With traditional remittance providers, the money has to go through a series of different agents before it gets to you," Gabriel Palafox, chairman of BBVA Transfer Services, said in the release. "Because Tuyyo runs on the BTS rails, the app allows the sender, through BBVA, to actually just move the money directly to the payment locations – this increases speed and maximizes convenience."

BBVA plans to add other features to Tuyyo, including insurance or microfinancing products with the sender paying the bill through the app for the benefit of the receiver, according to the release.

BBVA said it also plans to extend the service beyond Mexico to countries in Latin America.