Miranda’s Weekly Mex FinTech Monitor – November 13, 2023
Mexico FinTech News
Nu raises yield rate to 15% to compete with Stori and Ualá
NeoBank Nu has increased its annual return rate for savers in Mexico 15% up from 9%, as part of the ongoing interest rate competition among digital financial institutions. This automatic adjustment applies to both new and existing deposits in the “Nu box,” aligning with Nu’s customer-centric approach and focusing on simplifying the savings process. Nonetheless, the sharp increase has raised concerns about the impact on profitability for Nu and other FinTechs forced to compete. Mexico’s traditional banks pay close to zero interest on small demand deposits, fueling their profits. With total deposits of reportedly MXN 2.4 billion by the end of August, Nu joins competitors like Stori and Ualá ABC, offering competitive returns of 15 percent and 12 percent, respectively.
La Jornada, 11/8/2023, Julio Gutiérrez: Nu mejora la oferta, sube tasa de rendimiento a 15 por ciento
Klu and Pagando join the authorized FinTech universe in Mexico.
The National Banking and Securities Commission (CNBV) has authorized two companies, Klu Tech, S.A.P.I de C.V. (Klu) and XC Networks, S.A. de C.V. (trading as Pagando) as IFPES under the FinTech Law. This brings the total number of authorized FinTech firms to 69. Klu provides business solutions including corporate accounts, international transfers, bill payments, and point-of-sale terminals. Pagando offers both personal and corporate accounts. The CNBV also reported that it would conclude their evaluations of the firms still operating under the eighth transitory provision of the FinTech Law which allowed them to operate while they awaited their regulatory approval. According to the regulatory body, only 8 companies are currently operating under this provision.
El Economista, 11/8/2023, Fernando Gutiérrez: Klu y Pagando se unen al universo autorizado de FinTech en México
El Economista, 11/7/23, Sebastián Estrada: Fintech que operan con autorización condicionada tendrán resolución
Wise will apply for FinTech license in Mexico
Wise announced it is seeking to obtain a FinTech license in Mexico. The move aims to diversify Wise’s operations within the country, allowing them to offer a comprehensive range of financial products and services. By acquiring the license, Wise aims to enhance the user experience for its customers in Mexico, providing a one-stop solution for various financial needs. Additionally, obtaining the license will position Wise to compete more effectively with other FinTech companies operating in the Mexican market.
Iupana, 11/3/2023, Antony Pinedo: Exclusiva – Wise aplicará para licencia FinTech en México
Other news
Forbes México, 11/6/2023, José Roberto Arteaga: DiDi cerrará 2023 con una inversión histórica de 410 mdd para México y otros países
Forbes México, 11/3/23, Staff: Femsa prevé completar venta de negocios en 2024 para recortar deuda
LatAm FinTech News
Mercado Pago receives a $466 million credit line from Citigroup to expand in Mexico and Brazil
Citigroup extended a $466 million credit line to fast-growing Mercado Pago, the financial arm of Mercado Libre, to expand credit offerings in Brazil and Mexico. The funding, with $237 million from Citigroup’s Brazil unit and $229 million from its Mexican subsidiary, aims to boost credit growth and financial inclusion in the region. The two-year agreement mirrors a 2021 deal, signaling continued support. Relatedly, the company’s loan portfolio in Latin America grew 22.6% YoY to $3.4 billion in Q3 2023.
Reuters, 11/8/2023, Staff: MercadoLibre bags $466 mln from Citi to expand credit offering
Jeeves and Bexs introduce cross-border B2B payments platform in Brazil
Global FinTech Jeeves, in collaboration with the Brazilian FinTech Bexs, has introduced a fully digital self-service cross-border B2B payment platform in Brazil, streamlining and expediting the traditionally manual process of sending money from Brazil to global destinations. The platform, integrated with Bexs’ FX-as-a-Service solution, enables digital execution of transactions within 24 hours, eliminating the need for analog bureaucracy and multiple communications with FX providers. With a focus on providing Brazilian businesses access to global goods and services, the platform offers competitive FX rates, optimizing fund transfers and transaction margins. Jeeves aims to leverage its unique digital experience to benefit both startups and larger companies in the Brazilian market, recognizing the country as a significant expansion opportunity in Latin America.
Finextra, 11/8/2023, Staff: Jeeves and Bexs launch cross-border B2B payments platform in Brazil
Other news
Expansión, 11/10/2023, Alejandro Pineda: Secure electronic payments, the next big challenge for AI in Latin America
Contxto, 11/8/23, Eduardo Vega: N26, german fintech, confirms cessation of operations in Brazil
Global FinTech News
Klarna dodges a strike after reaching agreement with workers
Fintech giant Klarna has averted a planned strike by reaching an agreement with its workers in Sweden. The dispute centered around the absence of a Collective Bargaining Agreement (CBA) for Klarna employees, as most Swedish workers are covered by such agreements. Klarna’s CEO, Sebastian Siemiatkowski, stated that after intense negotiations, the company will join the Banks Employer Organisation by January 1, 2024, and has also agreed to sign a CBA that includes members of all unions affiliated with the central organization Saco.
TechCrunch, 11/3/23, Mary Ann Azevedo: Swedish fintech Klarna dodges a strike after reaching agreement with workers
US payment platform Bill is set to acquire Melio in a deal worth US $1.95 billion.
The American payment platform Bill is reportedly close to finalizing a deal to acquire Melio, a B2B payments platform for small businesses, for US $1.95 billion. This valuation is significantly lower than Melio’s previous $4 billion valuation after a funding round in September 2021. Bill, based in San Jose, California, offers financial automation software to small and medium-sized businesses (SMBs) across various industries. The acquisition is expected to be a stock and cash transaction, with the terms subject to potential revisions before finalization. An official announcement may come this week.
Fintech Futures, 11/9/2023, Tyler Pathe: US business payment platform Bill reportedly closing on $1.95bn deal to acquire Melio
Other news
Fintech Futures, 11/9/2023, Shruti Khainar: UK challenger Monument Bank completes £40m Series B raise, eyes more funding
Fintech Futures, 11/10/2023, Tyler Pathe: Canadian Tire reacquires Scotiabank’s 20% stake in its financial services arm in $650m deal
Reuters, 11/3/23, John Kruzel: US Supreme Court takes up Coinbase arbitration dispute
Bloomberg, 11/08/2023, Sarah Jacob: PayPal Rival Adyen Tempers Growth Targets to Regain Confidence
Bloomberg, 11/7/2023, Katie Roof and Ryan Gould: Stablecoin Issuer Circle Internet Considering 2024 IPO