Mexico Fintech Chatter – Jan. 27, 2025

Mexico FinTech News

Nu Reaches 10 Million Customers in Mexico – Is the Bank License Closer?

Nu has surpassed 10 million customers in Mexico, with 46% of users accessing financial products for the first time; it reaches over 98% of Mexican municipalities, including underserved areas. With this milestone, 12% of Mexico’s adult population now holds a “moradita“, the company’s signature purple card. The company continues to move forward with its bank license request, with some business columnists anticipating that this could materialize very soon.

Mileno, 01/22/25, Áxel Martínez:  “Nu Reaches 10 Million Customers in Mexico”. Other sources: Dinero en Imagen, 01/23/25, Alicia Salgado [opinion column]: “Nu Mexico to Become a Bank in a Trice”

 

Trump’s Terrorist Label for Cartels Is Putting Banks on Edge

Donald Trump’s designation of Mexican cartels as terrorist organizations risks creating a chilling effect on financial firms over fears they could face severe penalties by even unwittingly serving or paying criminals. Experts say firms might cut ties with sectors seen as risky. “This is going to be ‘know your customer’ times 10”, said Sandro García, a former top money laundering official at CNBV.

Bloomberg, 01/22/25, Michael O’Boyle:  “Trump’s Terrorist Label for Cartels Is Putting Banks on Edge”

 

Stori Won’t Request a Bank License – for Now

Bucking the trend of its larger fintech rivals, Stori will not be requesting a bank license at this time, though it doesn’t definitely rule it out. According to co-founder Marlene Garayzar, its current status as a Sofipo is “perfect” for their current offering, but that they could reconsider if clients were to demand more services that required a bank license.

El Economista, 01/26/25, Edgar Juárez:  “Stori won’t request a bank license at this time, but doesn’t rule it out”

 

Uber Eats Partners with R2 to Offer Quick Financing for Partner Restaurants

Uber Eats has partnered with fintech R2 to provide fast and flexible financing options for its partner restaurants in Mexico. Eligible restaurants can access loans averaging 35,000 pesos through an online process that takes less than five minutes via app. Repayments are deducted as a fixed percentage of sales on the platform. This initiative supports the 50,000 restaurants on Uber Eats in Mexico, 60% of which are small and medium-sized enterprises.

El Economista, 01/21/25, Elizabeth Meza Rodríguez:  “Uber Eats Partners with R2 to Offer Quick Financing for Partner Restaurants”

 

Venture Capital Transactions in Mexico Grow by 59% in 2024

In 2024, Mexico’s VC market saw a 59% increase in transaction value, reaching US$1.674 bn, up from US$1.051 bn in 2023, according to TTR Data. However, the number of transactions dropped by 25%, with 85 deals, down from 114. Key sectors included software, internet services, and financial services. Notable deals included a US$59 mn investment in fintech R2 and US$50 mn for online supermarket Jüsto. Leading investors, such as Kuiper VC, Cometa, and Endeavor Catalyst, participated in major transactions.

El Economista, 01/23/25, Rodrigo Riquelme: “Venture Capital Transactions in Mexico Grow by 59.38% in 2024”

 

Mexico Emerges as a Key Hub for Financial Innovation in Latin America

Mexico is establishing itself as a leading hub for financial innovation in Latin America, supported by a growing fintech ecosystem addressing gaps in traditional banking. With only 49% of Mexicans over 15 having a bank account, fintech companies are seizing opportunities like loans, payments, remittances, and financial management. Prominent Mexican fintech unicorns include Bitso (cryptocurrency), Clip (payments), Konfío (loans), Stori (digital banking), and Clara (business management). Companies like Kueski, Klar, Sofía, Belvo, and Jeeves are nearing billion-dollar valuations.

El Financiero, 01/24/25, Erika Mejía: “Mexico Emerges as a Key Hub for Financial Innovation in Latin America”

 

Clara Becomes SOFOM in Mexico to Enhance Financial Solutions

Clara, a corporate expense management platform, has been authorized as a Sociedad Financiera de Objeto Múltiple (SOFOM). While there are some legal advantages of incorporating as a SOFOM, they are not authorized to take deposits. Moreover, it is a far less exclusive club: according to CNBV figures, there are 1,820 SOFOMs, compared to 34 Sofipos and 51 banks.

Latam Fintech Hub, 01/23/25, Staff: “Clara Becomes SOFOM in Mexico to Enhance Financial Solutions”

 

 

LatAm FinTech News

Nubank’s Strategic Vision for the Next Decade

David Vélez, CEO of Nubank, shared the company’s long-term plans, focusing on global expansion and innovation. It is considering relocating its legal domicile to the UK to support international growth, and is evaluating entering the US market within 18-24 months, depending on favorable regulatory conditions. The company is exploring emerging markets, and recently invested US$150 mn in Singapore-based Tyme Group, which operates in South Africa and the Philippines.

Forbes Argentina, 01/20/25, Robert Olsen: “David Vélez, CEO of Nubank, Reveals Fintech’s Plans: ‘We’re Thinking About the Next 10 Years'”

 

Credicuotas Issues First Dollar-Denominated Bond for $18.2 Million

Argentine fintech Credicuotas, which specializes in consumer loans, has raised US$18.2 mn through its first USD bond issuance. CEO Ezequiel Weisstaub highlighted that dollar financing reduces funding costs, diversifies sources, and attracts new investors.

Latam Fintech Hub, 01/22/25, Staff: “Credicuotas Issues First Dollar-Denominated Bond for US$18.2 Mn”

 

PayMon Raises $600K Pre-Seed Round Led by Magma Partners

Ecuadorian fintech PayMon has raised $600,000 in a pre-seed funding round. PayMon provides a financial management app for students and parents, along with business tools for schools and cafeterias to automate payments and sales. The funds will be used to expand operations in Mexico and Ecuador and introduce new payment solutions.

LatamList, 01/20/25, Araceli Dominguez: “PayMon Raises $600K Pre-Seed Round Led by Magma Partners”

 

 

Global FinTech News

Trump’s New Meme-coin Sparks Anger in Crypto World

US President Donald Trump has been criticized for launching a meme-coin while saying he “doesn’t know much” about the cryptocurrency. The digital coin called TRUMP appeared on his social media accounts ahead of his inauguration on Monday and quickly became one of the most valuable crypto coins. The launch of the so-called meme-coin – a cryptocurrency with no utility other than for fun or speculation – has been widely criticised by industry insiders, who described it as a “stunt”, that is “making a mockery of the industry”.

BBC, 01/23/25, Joe Tidy: ‘A mockery’: Trump’s new meme-coin sparks anger in crypto world

 

Trump Discussing TikTok Purchase with Multiple People, Decision in 30 Days

U.S. President Donald Trump said on Saturday he was in talks with multiple people over buying TikTok and would likely have a decision on the popular app’s future in the next 30 days. Under the deal being negotiated by the White House, TikTok’s China-based owner, ByteDance, would retain a stake in the company, but data collection and software updates would be overseen by Oracle, according to sources.

Reuters, 01/26/25, Nandita Bose: Trump discussing TikTok purchase with multiple people, decision in 30 days

 

Clutch Secures US$65 mn Series B Funding to Propel Credit Unions into the FinTech Era

Clutch, a fintech company specializing in modernizing credit union services, has raised US$65 mn in a Series B funding round. The investment will enhance Clutch’s platform, enabling credit unions to offer digital-first financial solutions to their members.

FF News, 01/23/25, Staff: “Clutch Secures US$65 mn Series B Funding to Propel Credit Unions into the FinTech Era”

 

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