Mexico FinTech News
What to Expect from Mexico in Nu’s 4Q24 Results: Some Mixed Trends, but Continued Credit Quality Woes
Nubank will release its 4Q24 results on Thursday, Feb. 20. Contrary to most quarters, this time it will most likely report consolidated figures before Mexican regulatory data is published, so we take this opportunity to provide a preview, based on the available data (full financials through November, and portfolio data through January 2025). Extrapolating the data for October and November, trends overall remain challenging, particularly regarding credit quality.
Source: CNBV, Miranda Partners. Figures in MXN millions. 4Q24 is calculated with the average of the two months standing in for December.
On the positive side, the financial margin should rebound from a particularly weak 3Q24, helped by a growing loan portfolio, but also by a lower rate on the still-growing deposits. Provisions, however, are set to reach another high, leaving the risk-adjusted financial margin still deep in negative territory. Operating expenses also remain high, though they trended downward in November.
Taking a closer look at the evolution of the loan portfolio, it seems the company is still far from turning things around.
Source: CNBV, Condusef, Miranda Partners. Figures in MXN millions.
Though the reacceleration of loan growth in October and November was a welcome development, we find it particularly concerning that non-performing loans have a similar reacceleration the following quarter, which could signal a rather elevated rate of first default.
Source: CNBV, Condusef, Miranda Partners.
Put another way: despite a 45% YoY growth in the portfolio as of January 2025, the NPL ratio was virtually unchanged at 8.2% (despite some ~P$3.5 bn in write-offs in the period).
Aplazo Secures $35.5M to Expand ‘Buy Now, Pay Later’ in Mexico
Mexican fintech Aplazo raised a US$35.5 mn credit line from BBVA Spark to scale its BNPL services. CEO Ángel Peña highlighted the company’s mission to expand financial access, noting that 70% of users lack other financial products. Merchants using Aplazo report a 60% increase in average purchase value. Mexico’s BNPL market is expected to grow 40% in 2025, reaching US$4.56 bn.
Latam Fintech, 02/12/25, Staff: “Aplazo Secures US$35.5 mn to Expand ‘Buy Now, Pay Later’ in Mexico”
Mercado Pago and Tapi Partner to Transform Digital Payments in Mexico
Argentine paytech Tapi announced a strategic partnership with Mercado Pago to improve payment experiences in Mexico. In 2024, Tapi saw over 1,000% growth in Mexico and plans to quadruple its business and double its client base by 2025. Currently, the company serves more than 45 clients across Mexico, Argentina, Colombia, Chile, and Peru. Tapi specializes in recurring digital payments, such as subscriptions and gift cards; it also has cash-in and cash-out capabilities across 15,000 locations, including Seven Eleven and Walmart.
Latam Fintech, 02/13/25, Staff: “Tapi and Mercado Pago Partner to Enhance Payment Experiences in Mexico”
LatAm FinTech News
Fintech Growth Surpasses 300% in Latin America and the Caribbean Over Five Years
According to Mastercard’s report “The New Era of Financial Inclusion in Latin America,” the region now has over 3,000 fintech companies operating across 26 countries, marking a 340% growth since 2017. These companies have played a key role in increasing financial inclusion, with 72% of users reporting time savings on transactions, 59% citing improved financial planning, and 53% gaining better access to credit. Despite this progress, cash usage remains prevalent, especially among low-income populations, where 40% of respondents pay more than half of their monthly expenses in cash. To address this, 88% of fintechs are developing digital solutions targeted at underserved communities.
El Economista, 02/10/25, Sebastian Estrada: “Fintech Growth Surpasses 300% in Latin America and the Caribbean Over Five Years”
ICred Secures US$53 mn to Launch New Credit Rights Investment Fund
Brazilian fintech ICred, specializing in secured personal loans, has raised US$53 mn to establish a new Credit Rights Investment Fund (FIDC). The funds will finance payroll loans for INSS beneficiaries, with the offering nearly three times oversubscribed. In 2024, ICred financed US$460 mn, serving nearly 5 million clients across more than 5,400 municipalities in Brazil, with over 2.5 million active contracts.
Latam Fintech, 02/12/25, Staff: “ICred Secures US$53 mn to Launch New Credit Rights Investment Fund”
CashU Secures US$17.5 mn to Expand B2B Lending for SMEs
Brazilian fintech CashU has secured a US$17.5 mn Credit Rights Investment Fund (FIDC) backed by Itaú BBA and Credit Saison to expand its lending operations. Founded in 2019, CashU provides AI-powered credit solutions, enabling suppliers and distributors to offer Buy Now, Pay Later options with customized payment terms. The company plans to extend approximately US$175 mn in tailored credit to small and medium-sized enterprises (SMEs) in 2025, aiming to support sustainable growth and strengthen supply chains. CashU’s proprietary credit scoring model evaluates over 1,500 variables to help businesses make informed credit decisions.
LatamList, 02/13/25, Helen Villena: “CashU Secures US$17.5 mn to Expand B2B Lending for SMEs”
Do Payment Expands to Five Latin American Countries
Peruvian fintech Do Payment, specializing in pay-in and pay-out solutions, has expanded to Chile, Colombia, Mexico, Ecuador, and Panama. This regional growth aims to streamline payment processes in sectors like e-commerce and online gaming, where rapid transactions are crucial. Co-CEO Francisco Rodríguez anticipates a 30% growth in 2025, driven by rising demand in these industries. The company plans to process over $700 million in transactions by 2025 and is preparing to enter the Brazilian and U.S. markets.
Latam Fintech, 02/06/25, Staff: “Do Payment Expands to Five Latin American Countries”
Global FinTech News
Stripe Considers Employee Share Sale at Valuation Exceeding US$85 bn
Stripe is reportedly in discussions to facilitate a sale of employee-owned shares, potentially valuing the company at over US$85 bn. This move aims to provide liquidity for employees as its anticipated public offering remains delayed. In a similar transaction last February, Stripe conducted a tender offer valuing the firm at $70 billion. The company’s valuation peaked at US$95 bn in 2021, establishing it as one of the most highly valued private companies globally.
TechCrunch, 02/11/25, Mary Azevedo: “Stripe mulls employee shareholder sale at US$85 bn-plus valuation”
Revving Secures £107M to Revolutionize Invoice Factoring in Digital Media
UK-based fintech Revving raised £107 mn, including £100 mn in debt financing from DWS, to enhance liquidity in the digital advertising sector. Its platform integrates with digital marketplaces to provide faster access to working capital, addressing payment cycles of up to 120 days. Revving plans to finance £1.8 bn for UK digital businesses over three years, with an estimated £8.6 bn economic impact. CEO Chris Pettit highlighted the urgency of tackling late payments, which contributed to over 50,000 UK business failures last year.
FinTech Global, 02/13/25, Staff: “Revving Secures £107M to Revolutionize Invoice Factoring in Digital Media”
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