Mexico FinTech News
Post US Treasury accusations, flight to quality is another headache for Fintechs.
With global (and Mexican) financial intermediaries mostly cutting off CI Banco, Intercam Banco and Vector Casa de Bolsa following US Treasury requirements, fintechs are likely to both face added scrutiny from counterparts and clients and themselves have to invest in more compliance. Some fintechs are seeing this as an opportunity to take business from the intervened banks (especially in FX), while others are worried that their own intermediaries and customers will be circumspect about dealing with them until the dust is cleared, and migrate to bigger banks. The news on Sunday that VISA has cancelled its international relationship with CI Banco, leaving card holders outside Mexico without access to funds, is adding to the complexity of the situation. In the meantime, this will mean more compliance costs, and still more focus on reputation and trust. As industry executives told the Financial Times the news will ‘push all of Mexico’s financial institutions to increase “know your customer” and anti-money laundering scrutiny’. All three institutions are emphatically denying the accusations, but for now, they’ve been temporarily intervened by regulator CNBV, underscoring the dire potential consequences of merely being accused: counterparties are not even allowed to wait until a jury delivers a verdict before being obliged to pull relationships.
Financial Times, 25/06/25, Christine Murray and Myles McCormick: US imposes sanctions on three Mexican finance firms over China fentanyl trade.
Argentine Fintech Tapi Acquires Mastercard’s Arcus Unit in Mexico
Tapi, a fintech founded by Argentinians with most operations in Mexico, has acquired the bill payment and cash management operations of Arcus, a Mastercard subsidiary, in an all-cash deal. Details were not disclosed. According to Whitepaper, after this transaction with Tapi, Mastercard hands over to the fintech the airtime top-up and utility payments business (things like electricity, gas, etc.), but keeps the core business, which is SPEI transfers. The acquisition grants Tapi access to a broad cash deposit and withdrawal network, including OXXO and 7-Eleven stores, and strengthens its connectivity with billers throughout Mexico. The company plans to fund the acquisition using part of the $32M it has raised and profits generated over the past three years. Arcus was founded in 2013 by Latino entrepreneurs to aid immigrants with finances, evolved into a payments-as-a-service platform and was Mastercard’s largest LatAm acquisition in 2021. Mastercard aimed to access Mexico’s payment rails, including SPEI integration, which it is keeping, and partnerships with retailers like 7-Eleven and BBVA.
Investing.com, 27/06/25, Luke Juricic: Argentine fintech Tapi acquires Mastercard’s Arcus unit in Mexico.
Aplazo and EBANX Partner to Expand Flexible Payments in Mexico
Aplazo will become EBANX’s first BNPL solution in Mexico and will now be available globally through EBANX’s e-commerce platform. The BNPL market in Mexico is valued at USD $6.09bn for 2025, with projections pointing to a 300% increase by 2030. This strategic partnership aims to enable global merchants to offer Mexican consumers credit access in a simplified, transparent way, supporting ecommerce growth and digital inclusion. EBANX expects e-commerce in Mexico to grow 25% annually through 2027. Aplazo reports 38% of millennials and 31% of centennials already use BNPL. The companies aim to boost average purchase size and reduce cart abandonment through this integration. Aplazo has raised over USD $100m in equity and USD $75m in debt since 2020.
Latam Fintech Hub, 25/06/25, PR Newswire: Aplazo and EBANX partner to expand flexible payments in Mexico.
Belvo and Ualá Partner to Expand Credit in Mexico Using Employment Data
Belvo and Ualá have formed a strategic partnership to improve credit access in Mexico by leveraging employment data from the Social Security Institute (IMSS). Using Belvo’s API infrastructure, Ualá can assess users’ creditworthiness based on CURP-linked employment records, enabling faster approvals and reducing rejections due to lack of credit history. The initiative has already reached over 30 million CURPs, and achieves more than 95% success in digital connections. The partnership is expected to increase credit approvals by up to 10% and reduce denials by up to 30%. It focuses especially on financially underserved populations like women and youth. The initiative follows Ualá’s $66 million Series E extension led by Allianz X, and reflects both companies’ focus on expanding credit inclusion in the country.
Latam Fintech Hub, 25/06/25, Staff: Belvo and Ualá partner to expand credit in Mexico using employment data.
Additional reading…
- Mercado Pago gets ready to become Mexico’s largest digital bank.
- Drivers and Delivery Workers for Uber, Didi, and Rappi Face Uncertainty Amid New Reform Taking Effect.
LatAm FinTech News
Colombian Fintech Welli Raises $25M to Expand Health Credit Model in LatAm
Bogotá-based Welli has secured $25 million to scale its healthcare financing platform across Latin America. The startup, which has already disbursed over US$12 mn in Colombia, enables patients to obtain instant credit for medical and aesthetic procedures through a network of over 1,500 clinics and doctors. Loans are approved in five minutes and funds are directly transferred to providers, with average loan amounts around US$1,000.
Latam Fintech Hub, 26/06/25, Valora Analitik: Colombian fintech Welli raises $25M to expand health credit model in LatAm.
Waltz Raises $9.1M and Expands to Latin America
U.S.-based fintech Waltz has secured $9.1M in funding to drive its expansion into Latin America, starting with Brazil. A line of credit was provided by Setpoint Capital, while TLV Partners and Aleph led an equity investment. Waltz enables international clients to remotely buy real estate in the U.S., offering services such as mortgage processing, LLC formation, and property management. The funding will help Waltz scale these services in high-demand LATAM markets.
LatamList, 26/06/25, Matheus Tomé: Waltz raises $9.1M in debt and equity and expands to LatinAmerica.
Kiara Capital Secures First Close for US$40M Fintech-Focused Fund
Miami-based venture capital firm Kiara Capital has announced the close of its inaugural fund, targeting up to US$40 million to support early-stage B2B fintech startups across Latin America and U.S.-linked cross-border markets. Co-founded by Michael Esrubilsky and Daniel Arippol, the fund has already made five investments, including in Mexico- and Colombia-focused startups, deploying US$2 million. Kiara plans to back 15–20 companies with checks starting at US$500,000. The firm has attracted interest from bank executives, VC partners, and family offices aligned with fintech innovation.
Fintech Finance News, 25/06/25, Eunice and Staff: Miami-Based Kiara Capital Announces First Close for Fintech-Focused Fund Raising Up to US$ 40 Million.
Justos Raises $16.5M to Expand AI Tools for Brokers
Brazilian auto-insurtech Justos secured $16.5M in growth capital to deepen its AI-enabled broker tools and scale operations. The round was led by Ribbit Capital with participation from Kaszek, Scale Up, and Endeavor Catalyst. This follows a $35.8M Series A in 2021 and the approval of a full S3 insurer license by SUSEP. Founded in 2020, Justos uses smartphone telematics to reward safe drivers and plans to automate quoting, underwriting, claims, and roadside assistance. The company has doubled revenue annually and improved loss ratios, aiming to enter Brazil’s top-10 auto insurers with an AI-native strategy.
LatamList, 23/06/25, Pedro Farina: Justos raises $16.5M to expand AI tools for brokers.
Additional reading…
- Morgan Stanley sees Nubank leading payroll loans in Brazil ahead of schedule...
- … while Citi flags risks —this is its investment view.
Global FinTech News
BIS Prefers Regulated Tokenization to Stablecoins
The Bank for International Settlements (BIS) delivered its most pointed critique yet of stablecoins in its 2025 Annual Economic Report, casting doubt on their ability to serve as the backbone of the future monetary system. The BIS evaluated stablecoins using a three-pillar framework—singleness, elasticity, and integrity—and found them lacking on all fronts. While stablecoins offer some promise for programmable payments and cross-border transfers, the BIS concluded they fall short of key requirements for sound money, especially in terms of price stability, regulatory oversight, and crime prevention.
Instead of stablecoins, the BIS strongly advocates for the tokenization of central bank reserves, commercial bank deposits, and government securities on unified, programmable platforms. This approach, the BIS argues, preserves the trust in central bank money while unlocking new efficiencies in payments, securities markets, and cross-border transactions. Tokenization allows for seamless integration of messaging, reconciliation, and settlement, potentially enabling 24/7 operations and programmable financial contracts.
Despite BIS reservations, global regulators are moving to integrate stablecoins into the financial system, but only under robust oversight. In the U.S., the proposed GENIUS Act establishes a federal framework requiring stablecoin issuers to maintain full reserves, undergo regular audits, and comply with stringent anti-money laundering and consumer protection standards. Visa CEO Ryan McInerney welcomed the act, saying it provides the regulatory clarity needed for innovation and confirming Visa’s readiness to scale stablecoin-powered payments across its network if demand materializes. Europe’s MiCA regulation has imposed similar transparency and reserve requirements to ensure stability and consumer safety.
Major Industry Moves: Fiserv, Visa, Mastercard, and JPMorgan
The regulatory shift has spurred major financial and payments players to act:
- Fiserv announced the launch of its own stablecoin, FIUSD, for financial institutions, built on infrastructure from Paxos and Circle and available through the Solana blockchain. Fiserv’s partnerships with PayPal and Mastercard will enable FIUSD to be used across Mastercard’s global network, including for stablecoin-powered cards and payments.
- Visa and Mastercard remain at the forefront, with Visa’s CEO underscoring their commitment to embracing stablecoins and integrating them with existing payment rails, especially in emerging markets where stablecoins can drive financial inclusion.
- JPMorgan is piloting JPMD, a USD-denominated deposit token for institutional clients, issued on Coinbase’s Base blockchain. Unlike stablecoins, JPMD is a permissioned token, tightly integrated with traditional banking compliance and only available to approved institutional clients. JPMorgan argues deposit tokens offer the programmability and speed of stablecoins but with the regulatory assurances of commercial bank deposits, positioning them as a superior alternative for large-scale, cross-border, and on-chain settlements.
BIS Annual Economic Report, 24/06/25: The next-generation monetary and financial system.
CNBC, 17/06/25, Ryan Browne: JPMorgan moves further into crypto with stablecoin-like token JPMD.
Fiserv press release, 23/06/25: Fiserv Launches New FIUSD Stablecoin for Financial Institutions .
CNBC, 24/06/25: Visa CEO on GENIUS ACT: We’ve been embracing stablecoins.
Mastercard press release, 24/06/25: Mastercard partners with Fiserv to accelerate mainstream stablecoin adoption.
Worldline down 30% in week on KYC fears
Worldline, a major European payment processor, saw its shares drop nearly 30% after the European Investigative Collaboration (EIC) reported that the company allegedly covered up billions of euros in fraudulent transactions by high-risk clients over a decade. Despite warnings from its risk teams and partners like Visa, Worldline reportedly continued processing transactions with clients having fraud rates exceeding Visa’s 1.5% limit, sometimes as high as 15%. To avoid detection, it is claimed the company shifted these accounts between subsidiaries. Belgian prosecutors have since launched a money laundering investigation into Worldline’s Belgian entity.
Mediapart, 25/06/25, Yann Philippin and Clément Rabu: Dirty money from a French online payment giant. | Reuters, 27/06/25, Gianluca Lo Nostro: Belgian prosecutors launch money laundering probe into Worldline’s local unit.
Spain imposes conditions on BBVA takeover of Sabadell, including no merger in three years
Spain’s BBVA will not be allowed to integrate its operations with Sabadell for at least three years as one of the conditions imposed by the Spanish government on its hostile bid for its smaller rival in a potential blow to the suitor’s expansion plans. BBVA, whose CEO said on Monday it could drop its offer if Madrid’s terms proved too harsh, said in a statement it would evaluate the conditions set by the government.
Reuters, 24/06/25, Jesús Aguado: Spain says BBVA, Sabadell cannot integrate for at least 3 years as takeover condition.
BBVA Launches Fully Digital Bank in Germany
BBVA has launched a 100% digital bank in Germany, offering a fee-free checking account with a 3% annual interest rate and a debit card with 3% cashback—both for the first 12 months. The initiative builds on BBVA’s prior digital success in Italy and targets Germany’s tech-savvy market, where 66% of the bank’s new customers already join through digital channels. The new platform features a fully digital experience, including instant SEPA transfers, personal loans, and a card with dynamic CVV for enhanced payment security.
Fintech Finance News, 27/06/25, Staff: BBVA launches a 100% digital bank in Germany.
Additional reading…
- Xero to acquire Melio: A payments game-changer for small businesses across the US.
- SMB-focused Finom closes €115M as European fintech heats up.
- Spinwheel raises $30M to boost real-time consumer credit AI.
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