Mexico Fintech News
COFECE Makes Recommendations to Improve Financial Services in Mexico
Mexico’s antitrust watchdog COFECE issued a series of nonbinding recommendations, somewhat belatedly, to foster competition and increase financial inclusion, by way of loosening regulation on fintech players, allowing them to expand their offerings into areas currently restricted to licensed banks. While the recommendations are certainly not without merit, we would not expect them to get much traction. For further details, see our note here.
Klar says it is now profitable
Klar, Mexico’s second-largest Sofipo (popular finance institution) by clients and fourth by assets, claims it has reached profitability after four years, in sharp contrast to the heavy loss-making Nu, the largest Sofipo. CEO Stefan Möller told Expansion Klar reported monthly revenues of over $18 million, expecting to close the year above $20 million, which made the company financially sustainable. Klar plans to invest $100 million over the next year in technology, customer acquisition, and possibly acquisitions. Despite Mexico’s slowing economy, Möller remains optimistic, seeing growth potential due to increasing financial inclusion. According to CNBV data, Klar has consistently narrowed its losses throughout the past months, nearly reaching the break-even point in August, the last month for which there is data.
Expansión, 10/22/24, Luz Elena Marcos: Klar Achieves Profitability After Four Years.
Chart of the Week – Klar’s Monthly Profit Before Taxes
Nubank Eyes Argentina Amid Milei’s Rise but Sees Greater Opportunity in Mexico
Despite potential expansion in Argentina under Javier Milei’s leadership, Nubank identifies Mexico as its primary growth market due to the low penetration of financial services “Mexico seems to be 50 years behind”, said CEO David Vélez during a Bloomberg event in Brazil.
El Financiero, 10/23/24, Matthew Bristow: Nubank focuses on opportunities in Mexico.
Shein Partners with Mexican Fintech Stori Credit Card Launch
Shein, the global e-commerce platform, has teamed up with Mexican fintech Stori to launch a co-branded credit card tailored to its growing Mexican customer base. The card will offer exclusive benefits and rewards to enhance the online shopping experience. This partnership aligns with Shein’s efforts to deepen its reach in Latin America and Stori’s mission to provide accessible financial solutions.
El Economista, 10/23/24, Reuters: Shein partners with Mexican fintech Stori for credit card launch.
Kushki and J.P. Morgan Payments Partner to Expand Payment Solutions
Kushki has announced a strategic partnership with JP Morgan Payments to broaden its payment solutions across Latin America, starting in Mexico and Colombia. The new partners expect “gigantic demand” from corporate clients aiming to expand their electronic payments capabilities.
El Economista, 10/23/24, Sebastian Estrada: Kushki and J.P. Morgan Payments partner to expand payment solutions.
Kueski Introduces “Level Up” to Expand User Credit
Kueski has launched “Level Up,” a tool aimed at helping users increase their credit limits. This feature is designed to reward users who are up to date with their payments, thus allowing them greater financial flexibility.
El Imparcial, 10/25/24, David Arvizu: Kueski introduces “Level Up” to expand user credit.
CXC Raises $32.6M in Series A Round Led by Kaszek
CXC, a Mexican fintech focused on streamlining cross-border payments, has raised $32.6 million in a Series A round led by Kaszek. The funding will be used to expand its services across the region, improving payment solutions for businesses navigating international transactions.
LatamList, 10/25/24, Matheus Tomé: CXC raises $32.6M in Series A round led by Kaszek.
Other news
El Universal, 10/23/24, Antonio Hernández: J.P. Morgan aims to boost electronic payments in Latin America.
Fintech Global, 10/22/24: Propel leads $4.3m investment in Akua, enhancing FinTech innovations in LatAm.
Forbes México, 10/23/24, Diego Aguilar: Technology deficiency remains Mexican banking’s weak point.
Milenio, 10/25/24, Reuters: Bitso appoints Aimee Fearon as CFO.
LatAm Fintech News
Digital Wallets Meet to Ease QR Code Payment Tensions
Major digital wallet providers recently convened to address rising tensions over QR code payments in Argentina. The goal was to unify standards and improve interoperability between different QR payment systems, allowing users to make seamless transactions across various platforms. This collaboration aims to make QR code payments more accessible and user-friendly.
Yahoo Finanzas, 10/25/24, Staff: Digital wallets meet to ease QR payment tensions.
Agrolend Raises $53M in Series C Round
Brazilian agtech firm Agrolend has raised $53 million in a Series C funding round led by Creation Investments and Syngenta Group Ventures. This capital will support Agrolend’s expansion of digital lending services tailored for small and medium-sized farmers in Brazil, improving financial accessibility and fostering growth within the agricultural sector.
LatamList, 10/25/24, Adriana Villasana: Agrolend raises $53M in Series C round.
Other news
Forbes Colombia, 10/25/24, José Caparroso: Rappi, Mercado Libre, and Nu among top fintechs forming new founders in Latin America.
ResearchAndMarkets.com, 10/25/24: Alternative lending in LatAm expected to grow by 27.7% on an annual basis to reach US$28.2 billion in 2024.
Santander, 10/25/24: Getnet by Santander launches Getnet SEP, a solution for e-commerce payments in Brazil, Argentina, Mexico and Chile through a single integration.
Global Fintech News
Europe Losing Ground in SaaS Embedded Finance to the U.S.
Europe is falling behind the U.S. in the SaaS embedded finance sector, with American companies advancing in offering seamless financial services integrated within software platforms, according to research by payment consultancies PSE Consulting and TSG. The gap is widening due to regulatory challenges and slower adoption rates in Europe, while U.S. companies leverage innovation to embed finance solutions effectively across industries.
FF News, 10/25/24, Staff: Europe losing the SaaS embedded finance race as U.S. strides ahead.
DailyPay Strengthens Financial Position with $100M Credit from Citi
DailyPay has secured a $100 million credit line from Citi to reinforce its financial capabilities. The funding will enable DailyPay to expand its services, enhancing its earned wage access platform that provides employees with faster access to earned wages.
Fintech Global, 10/25/24, Staff: DailyPay bolsters financial strength with $100M credit boost from Citi.
Read as PDF: MIMexFintechChatter10.28.24