Mexico FinTech News
Ex Nu Mexico head Ivan Canales Chief Revenue Officer at PayJoy
Iván Canales joins PayJoy as Chief Revenue Officer. Canales arrives after Nubank México, where he helped launch the company’s first products in the country and eventually led the business as country manager, scaling it to more than 12 million customers and helping position Nu as one of Mexico’s leading digital financial institutions. He then appeared to have been fired during his paternity leave, as the company sought more profitable growth, bringing in the more disciplined Armando Herrera from Konfio and ex-AMEX as new head.
PayJoy is not a top-down neobank in the Nubank mold – which may be a good thing. It was built around extending credit for smartphones to consumers with little or no formal credit history, using the device itself as a form of digital collateral. Founder and CEO Doug Rickett studied computer engineering at MIT, worked on the early days of Google Maps leading its expansion into Asia, Africa and Latin America, and before founding PayJoy spent years in small-scale solar for emerging markets at Dlight Design — where he first learned that the problem in emerging markets was rarely the product but the financial accessibility to it. He founded PayJoy in 2015 with a former Google colleague, carrying with him that central principle: if you can digitally control a financed device, you can lend to people no one else will lend to.
Its PayJoy Access security platform is now integrated directly into the hardware of smartphone manufacturers representing between 70 and 90 percent of all phones sold in its key markets. If a customer stops paying, the device restricts itself to the PayJoy app — it is not bricked, but it is uncomfortable enough to keep honest customers current and deter fraud. According to Rickett, that technology alone cuts the default rate in half for any given customer segment. The second layer is predictive AI — not generative AI, but statistical machine learning models developed since 2016 — that allow the company to underwrite applicants without formal credit histories, adjust pricing by risk level, and determine how much credit to offer each individual. For fraud detection, PayJoy runs what it internally calls Cyborg: a combination of automated analysis at scale and human review for the most ambiguous cases, which the company says can push fraud detection from 90 percent to 99 percent or higher.
The company reported in June 2025 that it was on track to reach $650 million in revenue and $110 million in net profit by year end, having served more than 15 million customers. Its current corporate site now references more than 18 million customers, suggesting continued growth since that announcement. In total, the company says it has deployed more than $3 billion in credit to customers globally.
Mexico sits at the center of that story, both as an operating market and as the conceptual proving ground for the company’s model. When the pandemic hit in 2020, rather than tightening credit in the face of uncertainty, local management offered weeks of free credit to customers who had been paying on time — three free weeks for three weeks of on-time payment, scaling up to six. Those customers came back and paid off their loans in full, producing the best credit performance in the company’s history to that point. That experience convinced Rickett to abandon the technology licensing model — in which PayJoy sold its tools to third-party lenders — and go all-in on the vertically integrated model: PayJoy as the direct lender, not as infrastructure provider.
PayJoy explicitly cites Mexico and Colombia as key drivers of profitability for its newer credit products, and its international footprint is listed as nine countries: Mexico, Colombia, Brazil, Panama, Peru, Ecuador, South Africa, the Philippines and Indonesia.
Mexico is also where PayJoy has most aggressively pushed its second product phase. The PayJoy Card — part of what the company describes as its 2.0 vision, extending credit beyond device financing — is live in Mexico and Colombia, and the company explicitly cites both markets as key drivers of profitability for its newer credit products. The inspiration for extending credit to purchases beyond electronics came from a conversation with an executive at a major Mexican department store chain, who pointed out that every customer walking through the door already had a PayJoy-financed smartphone in their pocket — and that the equity in that device could serve as collateral to finance anything else in the store: a bed, clothing, appliances.
PayJoy has laid out a three-stage roadmap: smartphone financing, generalized credit via card and credit line, and eventually a full financial platform encompassing a digital wallet, remittances, bill pay, insurance and savings. In practice, that is a neobank built from the bottom up — from device collateral upward — rather than from a polished app downward.
In 2023, PayJoy announced a $360 million round composed of $150 million in Series C equity led by Warburg Pincus — with participation from Invus, Citi Ventures, Union Square Ventures and Greylock — and $210 million in debt led by Citi. More recently, the company disclosed a new investment into its funding arm PayJoy Asset Fund from accounts advised by T. Rowe Price, bringing that fund to more than $250 million in assets under management. The fund, which now represents slightly more than half of the company’s total loan portfolio, is designed for operational flexibility and has no recourse on PayJoy equity: capital can be redirected toward whichever markets are growing fastest in a given quarter, and currency exposure is fully hedged so investors receive dollar-denominated returns regardless of peso or other local currency movements.
What PayJoy needs now is to accelerate revenue in markets where it already operates and deepen the products that go beyond the smartphone. Canales brought some of that to Nubank México: building customer traction in a highly competitive market, managing huge growth under regulatory and profitability pressure, and positioning a digital platform as a credible alternative to established financial operators. If this can be achieved with operating and underwriting discipline that Nubank Mexico arguably lacked under the much-liked Canales, then the hire might make sense.
Fintech Expert, 02/04/26, Staff: PayJoy hires Iván Canales to lead its international expansion.
Afore Sura Considers More Banking and Fintech Opportunities After Banamex Stake
Afore Sura, Mexico’s third largest pension fund with MXN 1.4 bn in AUM, is considering increasing its exposure to both traditional banks and fintechs following its participation in Banamex’s partial sale. The fund sees Mexican banking as still profitable and undervalued despite rising fintech competition and fee pressure, with low financial penetration creating room for growth. Alongside its banking bet, Sura has already invested in fintech players such as Klar and Konfío, reflecting a dual strategy across incumbents and disruptors. The move highlights how pension funds are becoming more active investors in Mexico’s financial ecosystem, leveraging regulatory changes and growing assets to diversify into alternatives and capture long-term upside in a market where nearly half the population remains unbanked.
Bloomberg, 01/04/26, Kelsey Butler: Mexico Pension Giant Afore Sura Sees Banamex Deal as One of Many in Sector.
Additional reading…
- DiDi, Rappi, and Mercado Pago now manage money for nearly 20 million Mexicans.
- 92% of Mexicans expect to manage their money through financial apps.
- From speculation to infrastructure: Mexico and the maturation of the crypto industry.
- CNBV authorizes Ares Fintech to operate as an IFPE.
- Chilean fintech Fintoc accelerates its expansion in Mexico.
- Complaints against banks rise due to fraud and unauthorized charges.
- Cregis expands across Latin America and Mexico.
LatAm FinTech News
TikTok Seeks Fintech Licenses to Enter Brazil’s Credit and Payments Market
TikTok is applying for fintech licenses in Brazil to offer payments and credit services, signalling a deeper push into financial services as part of its broader ecosystem strategy. The company is seeking authorization to operate prepaid accounts and a direct credit model, allowing it to facilitate payments and lend or intermediate loans without taking deposits. The move mirrors strategies used by digital banks like Nubank and aligns with TikTok’s efforts to integrate financial services into its platform to support e-commerce and monetization. With over 130 million adult users in Brazil, the expansion highlights how big tech platforms are intensifying competition with both incumbents and regional neobanks.
Reuters, 31/03/26, Marcela Ayres: TikTok seeks Brazil fintech license to offer credit.
Mercado Pago Refocuses Crypto Strategy as MercadoLibre Scales Regional Ecosystem
Mercado Pago is discontinuing its Mercado Coin cryptocurrency to prioritize its dollar-backed stablecoin “Meli Dolar,” aligning its crypto strategy with more practical payment and treasury use cases across Latin America. The shift comes as MercadoLibre accelerates broader ecosystem expansion, with over US$15 bn in regional investments to strengthen logistics, technology, and fintech infrastructure, while also deepening payment integrations with global e-commerce platforms like Shein and Temu to reduce transaction friction. Together, these moves highlight Mercado Pago’s evolution from experimental crypto incentives toward scalable financial services embedded in commerce, reinforcing its position as a leading fintech platform driving digital payments, cross-border commerce, and financial inclusion across key markets including Brazil, Mexico, Argentina, and Chile.
Reuters, 31/03/26, Staff: MercadoLibre’s fintech terminates its cryptocurrency Mercado Coin.
Mendel Partners with BICE and Visa to Launch Corporate Card in Chile
Mexican fintech Mendel partnered with Banco BICE and Visa to launch a corporate credit card in Chile, expanding its regional footprint in expense management and embedded finance. The product combines financing with a digital platform that enables real-time expense tracking, card issuance, and centralized control for companies, targeting businesses seeking greater visibility and efficiency in financial operations. The alliance reflects growing collaborate between fintech, traditional banks and global networks to modernize corporate finance infrastructure, positioning players like Mendel to scale B2B financial services across the region.
Latam Fintech Hub, 31/03/26, Staff: Mendel partners with BICE and Visa to launch a corporate credit card in Chile
Additional reading…
- Revolut obtains a license to operate as a bank in Peru and strengthens its expansion in Latin America.
- Mevo raises $18M round led by Prosus.
- Brazilian fintech UnblockPay raises US$4.5mn seed round to scale stablecoin-based cross-border payments.
- Chilean fintech Blanco raises US$1.7mn via Broota to scale factoring business.
- Brazilian digital credit fintech Jeitto seeks to expand across Latin America ahead of its IPO.
Global FinTech News
Coinbase Secures Conditional US Trust Charter to Expand Institutional Crypto Services
Coinbase received conditional approval from the Office of the Comptroller of the Currency for a national trust company charter, positioning the firm to strengthen its role as a federally regulated crypto custodian and expand into new businesses such as stablecoins and tokenized securities. The license would enhance institutional trust by providing a unified regulatory framework, reinforcing Coinbase’s position as a key infrastructure provider for ETFs and asset managers entering crypto markets. The move reflects a broader shift among crypto firms seeking bank-like charters to diversify revenue beyond trading amid market volatility and to gain regulatory clarity under a more favorable U.S. policy environment, a trend that could influence how digital asset platforms scale globally and interact with traditional finance.
Bloomberg, 02/04/26, Olga Kharif: Coinbase Wins Conditional US Approval for National Trust Charter.
Wise Launches Everyday Accounts in UK to Capture Deposits
Wise is launching everyday banking accounts in the UK offering a 3.26% variable interest rate and direct debit functionality, expanding beyond its core cross-border payments business to capture customer deposits and deepen engagement. The fintech, which operates under an e-money license and serves 15.6 mn users globally, is positioning itself against incumbents and neobanks like Revolut by encouraging customers to hold and grow balances within its ecosystem. The move reflects a broader trend of fintechs evolving into full-service banking platforms to improve unit economics and retention, while Wise continues to pursue additional regulatory approvals, including a US bank license, to support its global expansion strategy.
Bloomberg, 30/03/26, Aisha S Gani: Wise to open UK everyday bank accounts as it competes with Revolut and Monzo.
Monzo Exits US to Refocus on UK and Europe
Monzo is shutting down its US operations after failing to gain traction since its 2020 launch, laying off around 50 employees and allowing existing customers to use accounts until June while halting new sign-ups. The UK-based neobank, which offers digital banking services including debit cards, savings, and lending, is shifting resources to scale in its core UK market and expand in Europe following ECB authorization. The move reflects the difficulty foreign fintechs face in entering the highly competitive and regulated US market, contrasting with peers like Revolut, Wise, and Nubank that continue to pursue US growth. Under new CEO Diana Layfield, the decision signals a strategic retrenchment toward markets where Monzo already has scale, with over 15 mn users in the UK, as competition intensifies globally among digital banks seeking sustainable growth.
Bloomberg, 31/03/26, Aisha S Gani: Monzo shuts US operations to prioritize growth in the UK and Europe.
Additional reading…
- Klarna Agrees to $1.7 Billion Transaction Supporting up to $40B+ of Lending.
- SoFi Launches Banking Service for Businesses. Can It Boost the Struggling Stock?
- China’s Top Private Ping An Insurer Taps AI to Unlock $174 Billion Value.
- Cross River Raises $50 Million to Expand Further Into AI, Crypto.
- Plume Tokenizes Payroll With Toku and WisdomTree to Deliver Yield at the Point of Payment.
Download PDF: Mexico Fintech Chatter – 06.04.26