Mexico FinTech News
MercadoLibre Announces Record US$3.4 bn Investment in Mexico
MercadoLibre announced on Friday it will invest a record US$3.4 bn in Mexico, its second largest market. A 38% increase relative to the investments the company made in 2024, the funds will be used to develop the company’s logistics capacity and develop its brand, as well as to boost its fintech operation, MercadoLibre country chief David Geisen said at President Claudia Sheinbaum’s morning press conference. As part of this drive, the company expects to add 10,000 new positions in Mexico.
Bloomberg, 03/02/25, Carolina Millan, “MercadoLibre Boosts Mexico Bet With $3.4 Billion Investment Plan”
Walmart Launching Debit Card in Mexico, Challenging Nubank and MercadoLibre
Walmart México is introducing its own debit card through its fintech platform Cashi, perhaps aiming to compete with Oxxo, and eventually with Nubank and MercadoLibre in the country’s financial sector. Currently Cashi offers a digital wallet for purchases within WalMart stores with 2% cash back, and select utility bills; the debit card will allow for purchases anywhere. This move marks Walmart’s expansion beyond retail into digital banking, leveraging its strong brand presence. Walmart entered the financial space in 2023 by acquiring Trafalgar Digital, later rebranded as Cashi. The new Cashi debit card allows deposits of up to $24,000 pesos per month, integrates with SPEI for bank transfers, and is available in both physical ($50 MXN) and digital versions via the Cashi app. Users can also withdraw, deposit, and receive remittances at Walmart stores and ATMs. Questions remain to what extend WalMex aims to extend its limited current credit marketplace offering, and whether it will seek to upgrade its IFPE license to a bank.
Cronista, 03/05/25, Staff: “Walmart Launches Debit Card in Mexico, Challenging Nubank and MercadoLibre”
BanCoppel offers digital mortgages
BanCoppel enters Mexico’s underpenetrated mortgage market with a fully digital offering, a first of its kind. Loans range from MXN 300,000 to 15 million, with rates starting at 9.90%. The bank aims for a 5-6% market share, targeting both existing and new customers. Borrowers receive personalized guidance, and up to 90% financing is available. With digital innovation at its core, BanCoppel seeks to transform access to housing finance in an underserved segment
El Economista, 03/03/25, Édgar Juárez: “BanCoppel Enters Mortgage Market”
FEMSA’s Banking Ambitions Could Disrupt Fintech and Neobanks, Says Moody’s
Ratings agency Moody’s warned that if FEMSA secures a banking license it could negatively impact fintechs and neobanks in Mexico. The credit agency highlighted that Spin by OXXO serves a customer base similar to that of traditional and digital banks and would intensify competition in an already challenging economic environment. The agency previously identified Spin by OXXO as a key challenger in Mexico’s fintech ecosystem, reaching 13 million users by the end of 2024.
Milenio, 03/05/25, Fernanda Murillo: “FEMSA’s Banking Ambitions Could Disrupt Fintech and Neobanks, Says Moody’s”
74% of Private Investment in Mexico Goes to Fintech
A report by Finnovista revealed that 74% of private investment funds in Mexico are directed towards fintech companies, demonstrating strong investor confidence in the sector. In 2024, venture capital firms invested US$865 mn in 50 fintech companies, with funding rounds focusing on larger, more established startups. The report highlighted that fintechs specializing in credit, remittances, and payments have seen the highest growth and funding. Notable deals include Stori’s US$212 mn Series C, Plata’s US$100 mn banking expansion round, Baubap’s US$120 mn pre-Series A, and Clip’s US$100 mn Series D. According to Andrés Fontao, CEO of Finnosummit, fintechs are now operating as mature businesses focused on profitability and customer retention rather than continuous fundraising.
Expansión, 03/05/25, Luz Elena Marcos Méndez: “74% of Private Investment in Mexico Goes to Fintech”
Liverpool vs. Fintech: How Consumer Credit is Changing in Mexico
Retail giant Liverpool is facing increasing competition from fintech companies in Mexico’s consumer credit market. Traditionally, Liverpool and Suburbia store cards have been a key entry point for first-time borrowers, but fintechs are now offering more accessible and flexible financing options, particularly for low-income and unbanked consumers. Liverpool’s CFO, Gonzalo Gallegos, acknowledged this shift, noting the rise in overall credit card issuance and fintechs’ growing market share. In response, Liverpool has adopted a more conservative credit strategy while still reporting 12.9% growth in its financial division in 2024, with loans reaching 64.3 billion pesos. Nearly half of Liverpool’s sales are driven by its store-issued credit cards. Analysts suggest that while fintechs increase financial inclusion, they are also reshaping the competitive landscape, challenging traditional lenders like Liverpool in the evolving consumer credit market.
Expansión, 03/03/25, Mara Echeverría: “Liverpool vs Fintech: How Consumer Credit is Changing in Mexico”
AI Adoption in Financial Services Continues to Rise
More than half of Mexican fintechs now use artificial intelligence (AI), primarily for customer interaction, fraud prevention, and risk assessment, according to Fintech Radar México 2025. 68% of fintechs apply AI to analyze customer behavior and personalize services, while 75% focus on single-product clients and 68% target unbanked populations, boosting financial inclusion. Pablo Pereyra, Director at 2innovate, noted that traditional banks are also leveraging AI to enhance automation and expand personalized offerings.
El Economista, 03/03/25, Sebastián Estrada: “AI Adoption in Financial Services Continues to Rise”
LatAm FinTech News
Malga Raises US$5.5 mn Series A to Expand Payments Infrastructure in Brazil
Brazilian fintech Malga raised US$5.5 mn in a Series A round led by iDEXO and Costanoa. Malga provides a unified API that connects businesses to multiple financial services, including payment providers, anti-fraud solutions, and analytics dashboards. The funds will be used to expand its team and accelerate growth, with the aim of trippling revenue again in 2025.
LatamList, 03/06/25, Matheus Tomé: “Malga Raises US$5.5 mn Series A Round Led by iDEXO and Costanoa”
Niva, an Indian-Colombian KYB startup raises $5.5 million
Niva, an AI-powered platform transforming business verification, raised $5.5M in a round led by Kaszek, bringing its total funding to $8.8M. Founded by Indian entrepreneurs Abhinav Rai and Akhil Naini, Niva is based in Colombia. Investors include Google’s Gradient Ventures, Picus Capital, and Canary. The platform automates Know Your Business (KYB) verification, cutting processing time from days to minutes. The funds will support expansion in Mexico, Brazil, and Colombia, partnering with fintechs like Xepelin and Aplazo
Forbes Colombia, 03/07/25, José Caparroso: “These India-born Founders Launch AI-Verification Platform in LatAm”
Global FinTech News
Klarna Eyes $15bn Valuation in $1bn IPO, perhaps launching next week
Klarna plans to raise at least $1 billion in a U.S. IPO, targeting a valuation above $15 billion. The Swedish fintech, known for its buy-now, pay-later services, has confidentially filed with the SEC. Goldman Sachs, JPMorgan, and Morgan Stanley are leading the listing.
Bloomberg, 03/06/25, Katie Roof and Bailey Lipschultz: “Klarna to File for $1 Billion-Plus IPO as Soon as Next Week”
Trump Announces U.S. Crypto Reserve
Donald Trump unveiled plans for a U.S. strategic cryptocurrency reserve, including Bitcoin, Ethereum, XRP, Solana, and Cardano. His announcement triggered a crypto market surge after recent losses. Trump framed the move as reversing Biden-era policies, vowing to make the U.S. the “Crypto Capital of the World.” The SEC has softened its stance on crypto regulation, recently dropping cases against Coinbase and Robinhood. A White House crypto summit is set for March 7.
PYMNTS, 03/02/25, Staff: “Trump: Bitcoin Will Sit ‘at Heart’ of US Crypto Reserve”
Duetti Secures US$200 mn to Expand Royalty Deals for Independent Creators
Duetti, a fintech specializing in music royalties, secured US$200 mn in funding to expand its royalty and publishing deals for independent artists. The funding, led by Northleaf Capital Partners, will allow Duetti to scale its platform, providing artists with immediate financial advances in exchange for a share of their future royalties. The company aims to democratize access to music financing, enabling independent creators to monetize their catalogs more effectively without relying on traditional record labels.
FinTech Global, 03/05/25, Staff: “Duetti Secures US$200 mn to Expand Royalty and Publishing Deals for Independent Creators”
Quantexa Secures US$175 mn Series F to Expand AI-Driven Fintech Solutions in North America
Quantexa, a UK-based AI-powered fintech, raised US$175 mn in a Series F round to accelerate its expansion in North America. The round was led by GIC, Warburg Pincus, and Dawn Capital, bringing Quantexa’s total funding to over US$500 mn. The company specializes in data analytics, fraud detection, and risk management for financial institutions, using AI-driven decision intelligence to enhance compliance and prevent financial crime. The funds will support new product development and hiring initiatives as Quantexa scales its presence in the US and Canada.
FinTech Global, 03/05/25, Staff: “UK AI Fintech Quantexa Secures US$175 mn Series F to Fuel North American Growth”
Additional reading…
- Ramp Deepens Investor Bench, Valuation Grows to $13 Billion.
- Plaid In Talks for Secondary Share Sale at $6 Billion Valuation.
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