Mexico FinTech Chatter – September 30th, 2024
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Mexico FinTech News
DiDi Card Surpasses One Million Clients in Mexico
DiDi Card has surpassed one million clients in Mexico within its first year of operation. Interestingly, despite its digital origin, most users favor using the card in physical stores, especially supermarkets and convenience stores, while 40% prefer digital transactions, and only 5% use contactless payments. The card is most popular in Mexico City, followed by Puebla, Yucatán, and Coahuila. DiDi has also promoted financial inclusion, with 42% of its new users being women. The company attributes its success to a fast and easy application process, allowing users to apply and receive approval through the DiDi app in under five minutes.
Excélsior, 09/26/24, Carla Martínez: DiDi Card supera un millón de clientes
CNBV final approvals: Belvo Pagos as an IFPE, and Fintigo as an IFC
In its last decisions in this government, Mexico’s National Banking and Securities Commission (CNBV) approved Belvo Pagos as an Electronic Payment Funds Institution (IFPE), and Fintigo as a Crowdfunding Institution (IFC). Belvo, a platform focused on open finance solutions, received its approval in 2022 and is now authorized to offer bank-to-bank payment services via APIs, primarily targeting business payments. Meanwhile, Fintigo, part of the crowdfunding sector, was authorized in December 2022 but had to meet specific operational conditions before launching. With these approvals, 83 institutions are now authorized under Mexico’s FinTech Law, 55 as IFPEs and 28 as IFCs, while 21 other companies are awaiting approval from the CNBV to begin operations
CNBV da luz verde a Belvo y Fintigo para operar bajo la Ley Fintech en México (eleconomista.com.mx)
Nu and Bancoppel see new banking competitors as a positive: Nu on benefits of license
Speaking at the Finnosummit 2024 conference, executives from Nu Mexico and Bancoppel said the entry of new players into the Mexican banking industry should boost competition and improve access to financial services. Carlos López-Moctezuma, CEO of Bancoppel, further said that “on the regulatory front, Mexico has sought to maintain a level playing field, the same regulation for the same activities… this generates clear collaboration opportunities among companies”. Separately, Iván Canales, Nu’s Mexico head, told El Economista that its banking license would help facilitate payroll portability for users and increase competition. Canales believes this change will contribute to financial inclusion by offering simple, transparent financial products to more Mexicans. With only around 50 banking licenses in Mexico, and low financial inclusion rates (with only 11-15% of the population having access to credit cards), Nu sees a significant opportunity to improve access. The company’s application, submitted nearly a year ago, is under review by the CNBV, with both parties collaborating closely to ensure alignment with financial inclusion goals.
El Economista, 09/25/24, Sebastián Estrada: Nu y Bancoppel ven positivo la llegada de más jugadores a la banca en México
Licencia bancaria generaría más competencia en el mercado: Nu México (eleconomista.com.mx)
Due Network, a Global Fintech, Launches Operations in Mexico
A global fintech specializing in international payments has announced its entry into the Mexican market. Due enables businesses and individuals to transfer funds to and from over 60 countries more efficiently and at lower costs compared to traditional banking. With features such as multi-currency virtual bank accounts and digital dollar wallets, the company aims to support Mexican SMEs and the remittance market by offering faster and more affordable solutions.
Latam Fintech, 09/25/24, Staff: Due Network anuncia el inicio de operaciones en México
Openbank, Santander’s digital bank, launches waitlist in Mexico
Openbank, Santander’s digital bank, has opened a waitlist on its website for Mexican customers ahead of its planned launch at the end of the year. Interested customers can register online to receive updates and early access to the app. Santander aims to capture the market of users seeking fully digital financial services without physical branches, positioning Openbank as a 100% fintech option. The company highlighted Openbank’s strong customer satisfaction in Europe and its potential to offer differentiated financial solutions in Mexico. The website does not include details on the eventual services that will be offered.
El Universal, 09/24/2024, Antonio Hernández: Openbank, el banco digital de Santander, lanza lista de espera en México
Other news
El Economista, 09/25/24, Edgar Juárez: Mercado Pago presenta solicitud ante la CNBV para operar como banco en México
El Economista, 09/26/24, Leticia Riquelme: Fintech reto profundizar confianza usuarios.
Forbes México, 08/14/24, Forbes Staff: CNBV oficializa 35 nuevas Fintech
Oxxo nombra a Carlos Arroyo como su nuevo director general en México (expansion.mx)
LatAm FinTech News
Rappi to Invest $22 Million in Argentina for Expansion
Rappi has announced plans to invest $22 million in Argentina over the next four years. This investment is part of a broader expansion strategy aimed at improving its delivery and fintech services in the country. The company will focus on enhancing user experience and expanding its presence in key markets across Argentina. Rappi’s efforts are expected to bring new features and services, benefiting both users and local businesses.
El Cronista, 09/25/24, Staff: Rappi invertirá US$ 22 millones en Argentina.
Mercado Pago Raises $183M in Brazil to Boost Credit, Payments, and Working Capital
Mercado Pago, the digital bank of Mercado Libre, completed its first financial letter issuance in Brazil, raising 1 billion reais. The issuance attracted 2.7 times more demand than the amount offered, with Itaú BBA coordinating the operation. The funds will support Mercado Pago’s growth in credit, payment processing, and working capital while extending its liabilities and diversifying financing sources. The issuance included two series: one maturing in two years with a CDI + 0.50% annual rate and another in three years with a CDI + 0.60% rate. Lourenço Cassandre, Senior Treasury Director at Mercado Livre and Mercado Pago in Brazil, noted that the operation expanded institutional investors’ understanding of Mercado Pago’s digital banking capabilities beyond payment services
Latam Fintech, 09/24/2024, Finsiders: Mercado Pago capta US$183M para apoyar su crecimiento en los frentes de crédito, procesamiento de pagos y capital de trabajo en Latam
Nubank Leverages Nasdaq Tech for Regulatory Compliance in Colombia
Nubank, with over 100 million customers in South America, has selected Nasdaq’s regulatory reporting solution, AxiomSL, to ensure compliance with Colombian regulations. This partnership extends an existing collaboration, with Nasdaq supporting Nubank’s fixed income and money market operations.
The Fintech Times, 09/23/2024, Staff: Nubank Leverages Regulatory Reporting Tech from Nasdaq to Ensure Compliance in Colombia
Other news
LatamList, 09/25/24, Juliane Butty: 500 Global launches fourth fund for Latin American startups.
Global FinTech News
Department of Justice sues Visa, alleges the card issuer monopolizes debit card markets
The U.S. Justice Department has filed an antitrust lawsuit against Visa, alleging that the financial services behemoth uses its size and dominance to stifle competition in the debit card market, costing consumers and businesses billions of dollars.
AP, 09/24/24, Mae Anderson: Department of Justice sues Visa, alleges the card issuer monopolizes debit card markets.
EIB Provides €220 Million Financing to Italian Paytech Company Nexi
The European Investment Bank (EIB) has awarded €220 million in financing to Nexi Group, an Italian paytech company, to drive innovation in digital payments across Europe. Announced in Milan, the funding will support Nexi’s projects to modernize digital payment systems and enhance their technological capabilities.
FinTech News Switzerland, 09/27/2024, Staff: EIB Provides €220 Million Financing to Italian Paytech Company Nexi
M2P Fintech Secures US$100M for African Expansion
M2P Fintech has raised $100 million to support its expansion into the African market. The funds will be used to develop digital financial infrastructure and scalable solutions for banks, fintechs, and startups across the continent, helping drive financial inclusion and innovation.
Fintech Magazine, 09/25/24, Louis Thompsett: M2P Fintech secures US$100M for African expansion.
Fintech Magazine, 09/25/24, Louis Thompsett: Indebted secures $50M in Series C funding round.
Other news
TechCrunch, 09/25/24, Staff: Peak XV Reaps $1.2B After Split.
PitchBook, 09/25/24, Leah Hodgson: Headline’s Xiao on Growth Investing Resurgence.
FinTech Futures, 09/27/24, Cameron Emanuel-Burns: Estonian fintech Mifundo has raised €10 million from various sources.
FinTech Futures, 09/27/24, Cameron Emanuel-Burns: UK-based fintech Simpler has secured €9 million in a pre-Series A
FinTech Futures, 09/27/24, Cameron Emanuel-Burns: Desia, a UK-based fintech start-up, has bagged a $3.3 million pre-seed funding round.
Fintech Magazine, 09/25/24, Louis Thompsett: Indebted secures $50M in Series C funding round.
Chime Hires Morgan Stanley To Lead IPO — The Information
Revolut to Spin Out $9.5 Billion Wealth Assets With New Platform – Bloomberg