Mexico FinTech News
Femsa Digital continues strong growth, no data on profitability
Femsa reported 1Q24 earnings and encouraging user growth from Femsa Digital. Spin by OXXO reported 10.9 million total users, (active users 68% of the total) from 6.4mn a year ago, while Spin Premia had 44 million loyalty users (active users 49%) with an average tender of 35.0% from 28.9mn a year ago. Spin by OXXO is primarily a digital payment platform and debit card that facilitates transactions such as money transfers and utility payments, integrated with OXXO’s extensive retail network. Spin Premia, on the other hand, is a loyalty program designed to reward customers for their purchases at OXXO locations, further solidifying customer relationships and driving repeat business. Femsa has begun monetizing Spin through data collection and digital media and claims it is monetizing with certain CPG companies already. Tender on financial services is still very low (5%), an area of opportunity. FEMSA said it invested nearly US$50mn in digital in 1Q, in line with previous quarters. Femsa does not break down profitability of Digital, as it is included in Others (smaller businesses, corporate expenses and the Digital Division). Still, “Others” reported a positive EBITDA of MXN$232mn this quarter (vs. -MXN$2.8bn in the prior quarter).
https://femsa.gcs-web.com/financial-reports/quarterly-results
Chilean FinToc raises $7mn to expand into Mexico
Chile-based Fintoc, a Y Combinator alum, has secured $7 million in Series A funding to expand its presence in Chile and Mexico. Its API supports instant account-to-account (A2A) payments, offering a cheaper alternative to credit card transactions by reducing intermediary fees. This capability has garnered significant use in Chile, engaging about 13% of the population, and is positioned for substantial growth in Mexico despite lower banking penetration there.
TechCrunch, 04/25/2024, Anna Heim: Chilean instant payments API startup Fintoc raises $7 million to turn Mexico into its main market | TechCrunch
El Economista, 04/25/2024, Sebastián Estrada: Fintoc, especializada en “pay-by-bank”, levanta 7 millones de dólares en su Serie A
Merama secures $80M in credit from J.P. Morgan
Merama, a Latin American e-commerce company, has secured $80 million in credit financing from J.P. Morgan. The funding will support Merama’s expansion efforts across the region, allowing it to scale its operations and partnerships with direct-to-consumer brands. Merama aims to leverage the investment to strengthen its position in the rapidly growing e-commerce market of Latin America, driving further innovation and growth in the sector.
LatamList, 04/24/2024, Sara Delgado: Merama secures $80M in financing from J.P. Morgan
Other news
El Economista, 04/23/2024, Sebastián Estrada: Nu México reforzará seguridad y reducirá riesgo de fraudes
FinTech Expert, 04/22/2024, Staff: Klar Impulsa la Inclusión Financiera con Nuevos Préstamos Personales
LatAm FinTech News
FinTech Prex becomes the first non-bank digital wallet to be interoperable in Peru
Prexpe, a Uruguayan FinTech company, has become the first non-banked digital wallet to be interoperable in Peru. This integration allows Prexpe users to transfer money between different digital wallets and bank accounts, thus facilitating financial inclusion and money mobility in the country. This initiative represents a significant advancement in the Peruvian FinTech ecosystem and promotes the adoption of digital financial solutions among the unbanked population.
Latam FinTech Hub, 04/23/2024, Staff: FinTech Prex se convierte en la primera billetera digital no bancarizada en ser interoperable en Perú
NuInvest, Nubank’s investment broker, has been authorized by the Central Bank to operate in Brazil’s foreign exchange market
NuInvest, the investment brokerage arm of Nubank, has been granted approval by the Central Bank to commence operations within Brazil’s foreign exchange market. This development marks a significant expansion for Nubank into the realm of currency trading, potentially opening up new avenues for investment opportunities for its customers in Brazil.
Latam FinTech Hub, 04/22/2024, Staff: NuInvest, el broker de inversiones de Nubank, recibió la autorización del Banco Central para operar en el mercado de divisas en Brasil
Brazil’s FinTech Firm Clara Eyes New Funding to Fuel Expansion
Brazilian FinTech company Clara is seeking new funding to support its expansion efforts. The company, which offers financial management solutions for small and medium-sized enterprises (SMEs), aims to secure additional investment to fuel its growth and reach more customers. Clara’s expansion plans include enhancing its product offerings and expanding its market presence within Brazil. The funding will enable Clara to further develop its technology platform and accelerate its mission of providing accessible financial services to SMEs across the country.
Contxto, 04/26/2024, Staff: Brazil’s FinTech Firm Clara Eyes New Funding to Fuel Expansion
Other news
Contxto, 04/24/2024, Staff: Prexpe Achieves First Non-Banked Digital Wallet Interoperability in Peru
Contxto, 04/22/2024, Staff: Banco de la República de Colombia and Montran Launch New Central Securities Depository
Global FinTech News
Stripe, doubling down on embedded finance, de-couples’ payments from the rest of its stack
Stripe, a prominent player in the online payment processing sphere, is ramping up its commitment to embedded finance, a strategy that involves integrating payment functionalities more extensively within its broader range of services. By strategically coupling payments with other offerings in its stack, Stripe aims to streamline financial transactions, providing businesses and consumers with enhanced convenience and efficiency.
TechCrunch, 04/24/2024, Ingrid Lunden: Stripe, doubling down on embedded finance, de-couples’ payments from the rest of its stack
Klarna Integrates Payment Services with Uber
Klarna, a FinTech company, has partnered with Uber to offer payment services in the United States. This collaboration enables Uber customers to access Klarna’s “Pay in 4” installment payment option when paying for their rides. The integration of Klarna’s payment solutions aims to enhance the user experience for Uber customers by providing more flexibility and convenience in payment methods.
Contxto, 04/25/2024, Staff: Klarna Integrates Payment Services with Uber
Monese to split business in two amid mounting financial woes
Monese, a FinTech firm, has announced plans to split its business into two separate entities due to financial challenges. This decision comes as the company faces mounting financial difficulties. The split aims to segregate Monese’s banking operations from its technology platform, allowing each entity to focus on its core functions and potentially attract new investment or partnerships. The move reflects Monese’s strategy to address its financial woes and position itself for future growth and stability.
FinTech Futures, 04/23/2024, Tyler Pathe: Monese to split business in two amid mounting financial woes
Other news
TechCrunch, 04/24/2024, Mary Ann Azevedo: ‘Send now, pay later’ startup Pomelo lands $35M Series A from secretive Vy Capital, Founders Fund
FinTech Futures, 04/23/2024, Tyler Pathe: TabaPay to acquire assets of BaaS FinTech Synapse
FinTech Futures, 04/24/2024, Tyler Pathe: Jordan Kuwait Bank digitises transaction banking functions with iGTB platform
Equities platform Midas raises $45M Series A as fintech retains its sparkle in Turkey | TechCrunch
Payflows emerges from stealth with €25m Series A funding – FinTech Futures: Fintech news
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Revolut plans advertising sales push as it waits for banking licence (ft.com)