Mexico Fintech Chatter – Jan. 20, 2025

Mexico FinTech News

Oxxo joins Nu Mexico’s cash-out network

Femsa’s convenience store chain Oxxo announced an agreement to make its 22,000 stores available for cash-out and (eventually) cash-in to Nu Mexico’s 9 million customers. In its press release, the company highlighted the agreement “reinforces our mission to be the most trusted and closest network, fostering financial inclusion across the country”. While the announcement might not have been a huge surprise after Oxxo made its store network available to BBVA’s clients last September (see here), we believe it is yet another sign of Femsa’s reticence to seek a bank license of its own. On the other hand, the deal is a major win for Nu, as it significantly expands its cash-out network (from 8 to 30 thousand locations), in addition to the strategic implications of likely ruling out Oxxo as an eventual competitor, perhaps more relevant in the long term, in our view.

Press releases, 01/13/25: Femsa; Nu Mexico.

 

TransUnion to Invest $560 Million to Increase Stake in Mexican Credit Bureau

TransUnion has agreed to acquire an additional 68% stake in Trans Unión de México SA (Buró de Crédito) for $560 million, increasing its ownership to 94% and valuing the company at $818 million. The country’s largest banks were the selling party. The deal, which includes the consumer credit segment but excludes commercial credit, will be financed through a combination of cash and debt. The transaction is pending regulatory approval and is expected to close by the end of 2025.

Bloomberg, 01/16/25, Michael O’Boyle: “TransUnion to Invest $560 Million to Increase Stake in Mexican Credit Bureau”

 

Rate Wars in 2025: Lower Yields and Increased Competition in Mexico

In 2025, Mexican fintechs and banks have reduced the yields offered on deposits, which previously reached up to 15%, following interest rate cuts by Banxico. As the central bank continues to lower its benchmark rate, financial institutions are adjusting their own rates to remain competitive, for the most part keeping their yields slightly above the reference rate. The arrival of new market entrants is also intensifying competition, pushing companies to innovate and refine customer acquisition and retention strategies.

Bloomberg Línea, 01/14/25, Italia López: “Rate Wars in 2025: Lower Yields and Increased Competition in Mexico”

 

Regulation and Maturity Drive Mexican Fintechs Toward Full-Service Banking

In 2024, several Mexican fintechs operating as Sofipos or Financial Technology Institutions (ITFs) applied for full-service banks licenses. This shift highlights the sector’s growing maturity and the constraints of existing regulations, which do not fully align with modern tech-driven business models. Experts emphasize the need for more flexible regulatory frameworks to support digital operations and advanced technologies like Big Data and AI. Carlos Valderrama, director of Legal Paradox, notes that a banking license enables fintechs to offer a full range of services, facilitating their growth within Mexico’s financial sector.

El Economista, 01/14/25, Sebastián Estrada: “Regulation and Maturity Drive Mexican Fintechs Toward Full-Service Banking”

 

Airwallex Enters Mexican Market with Acquisition of Fintech MexPago

Australian unicorn Airwallex, valued at $5.6 billion, has acquired Mexican fintech MexPago, an authorized Electronic Payment Funds Institution (IFPE). This acquisition marks Airwallex’s entry into Mexico, a key strategic hub for cross-border payments in the Americas. MexPago founder Luis Castillejos Ordaz, now serving as Airwallex’s Country Manager in Mexico, highlighted the growing demand for digital financial tools among SMEs, with 85% planning to expand international operations.

El Economista, 01/15/25, Fernando Gutiérrez: “Airwallex Enters Mexican Market with Acquisition of Fintech MexPago”

 

 

LatAm FinTech News

Nubank Expands USDC Rewards Program Across Latin America

Nubank has expanded its USD Coin (USDC) rewards program to crypto wallet users in Brazil, Mexico, and Colombia. Customers with a minimum balance of 10 USDC earn a 4% annual return, credited daily, with no lock-up periods. Following a 2024 pilot, USDC now represents 30% of Nubank’s crypto users’ portfolios, with over half of new users choosing it as their first digital asset. Nubank also introduced a crypto swap feature, enabling users to exchange Bitcoin and Ethereum for USDC within the platform.

Latam Fintech Hub, 01/15/25, Staff: “Nubank Expands USDC Rewards Program Across Latin America”.

 

Finmaq Secures US$29 mn to Enhance SME Asset Financing in Colombia

Colombian fintech Finmaq, which specializes in financing small and medium-sized enterprises (SMEs) and independent workers for purchasing productive assets, has raised US$29 mn in a pre-Series A round, combining debt and equity financing. The equity portion was led by Alive Ventures, with participation from 30N Ventures and other investors. This funding round follows Finmaq’s US$23.5 mn investment in June 2023.

LatamList, 01/16/25, Hellen Villena: “Finmaq raises US$29 mn to expand SME asset financing in Colombia”.

 

Airwallex obtains new operating license in Brazil

Airwallex has secured a payment institution license in Brazil, enabling services like local accounts, card issuance, and payment processing. Ravi Adusumilli, Airwallex’s President for the Americas, emphasized the company’s mission to support businesses across Latin America and globally with seamless cross-border transactions solutions.

El Economista, 01/15/25, Fernando Gutiérrez: “Airwallex obtains new operating license in Brazil”

 

Uruguayan Fintech Mozart Joins Microsoft and Nvidia Programs, Plans Mexico Expansion

Mozart, a fintech focused on AI-powered credit and debt solutions in Latin America, has been selected for Microsoft for Startups and Nvidia’s Inception Program. The Microsoft initiative grants US$150,000 in cloud infrastructure, mentorship, and global networking, while Nvidia offers advanced technology, venture capital connections, and marketing support. In 2025, Mozart plans to expand into Mexico by building a local leadership team and is also exploring entry into the Brazilian market. The company is finalizing a US$1 mn funding round to support these efforts.

El Observador, 01/17/25, Staff; “Uruguayan Fintech Mozart Joins Microsoft and Nvidia Programs, Plans Mexico Expansion”

 

 

Global FinTech News

eToro Files for U.S. IPO, Targeting $5 Billion Valuation

Retail trading platform eToro has confidentially filed for an IPO in New York, seeking a valuation exceeding $5 billion. Founded in 2007, eToro offers trading services for stocks and cryptocurrencies, managing $11.3 billion in assets across 3 million accounts. This follows a withdrawn 2021 SPAC deal valued at $10.4 billion and a $250 million funding round in 2023 at a $3.5 billion valuation. Goldman Sachs, Jefferies, and UBS are among the banks advising the IPO.

TechCrunch, 01/16/25, Staff: “Trading platform eToro said to be eyeing $5B US IPO in 2025”

 

Santander Said to Consider Exit from UK

Santander is exploring options for its UK operations, including a potential exit. Management at the Spanish bank is said to be frustrated by low returns and the high regulatory costs associated to the UK’s ring-fencing regime. According to sources, in the event of an exit, the bank would retain corporate and investment banking presence.

Financial Times, 01/18/25, Ortenca Aliaj and Simon Foy: “Silbo Money Introduces WhatsApp Payment Services in Spain”

 

Silbo Money Introduces WhatsApp Payment Services in Spain

Seville-based fintech Silbo Money has been authorized by the Bank of Spain to facilitate payments directly through WhatsApp, positioning itself as a competitor to services like Bizum. Founded in 2021, Silbo Money initially raised €1.5 mn and plans to secure an additional €2 mn in 2025. The service allows users to make payments within WhatsApp without additional apps, capitalizing on WhatsApp’s 95% penetration in Spain.

SerNoticias.com.mx, 01/16/25, Staff: “Santander considers UK exit amid frustrations with high street banking”

 

Global Fintechs Secure US$111 mn to Drive Cross-Border Growth

Two fintech companies in Switzerland and Nigeria have raised a combined US$111 mn to drive international expansion. Sygnum, a Swiss digital asset bank, secured US$58 mn, boosting its valuation to over US$1 bn. The funds will support its entry into EU/EEA markets and establish a regulated presence in Hong Kong. LemFi, a Nigerian cross-border payments platform, raised US$53 mn in a round led by Left Lane Capital. The funding will enable LemFi to expand into Europe, focusing on the UK and Germany, to serve African immigrant communities.

FinTech Magazine, 01/16/25, Louis Thompsett: “Global Fintechs Secure US$165m in Cross-Border Growth Push”

 

Recharge Secures £38 Million from ABN AMRO to Fuel M&A Strategy

Recharge, a European leader in online prepaid payments, has secured a £38 million facility from ABN AMRO to support its M&A strategy.

FF News, 01/17/25, Staff: “Recharge Partners With ABN AMRO for £38 Million to Boost Their M&A”

 

Hyperline Secures US$10 mn to Revolutionize Automated Billing

Hyperline, a monetization platform for hybrid revenue models, has raised US$10 mn in a seed extension round led by Index Ventures. The platform supports SMEs with automated pricing, workflows, and multi-currency capabilities.

FinTech Global, 01/16/25, Staff: “Hyperline Secures US$10 mn to Revolutionize Automated Billing”

 

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