Mexico FinTech News
Government Upends E-commerce with New Tariffs
Aiming to fight “abusive practices”, the Mexican government announced new tariffs, effective Jan. 1, for goods entering the country via courier companies. The measure eliminates the tax-free (“de minimus”) break for goods under US$50 of value. Going forward, Mexico is imposing a 19% tariff on all products of whatever value coming from countries without a free-trade treaty (such as China), and is thus believed to be aimed at Asian e-commerce giants Shein and Temu that had previously benefited from the tax-free “de minimus” regime for their low-value goods. Nonetheless, goods from the US and Canada will now pay a hefty 17% duty, so Amazon and Mercado Libre are also severely impacted. It follows a 35% tariff imposed on textiles, announced earlier in December.
Reuters, 12/31/24, Cassandra Garrison: Mexico unveils new tariffs, popular e-tailers like Shein, Temu may be in crosshairs
Latitud publishes LatAm Tech Report 2024
VC fund Latitud, backed by well known industry players such as Nubank’s David Vélez and Brex’s Henrique Dubugras, published its annual LatAm Tech Report. Widely followed in the media, the third edition of the report covers the “trends, challenges, and opportunities shaping Latin America’s startup ecosystem in Fintech, SaaS, E-commerce, Logistics, and AI”. It is available here.
Konfío Increases and Extends Credit Lines to Boost SME Financing
Mexican fintech Konfío announced expanded credit lines with longer maturities. Goldman Sachs increased its line to MXN 4.4 bn, with maturity in 2028 (previously MXN 4.1 bn maturing in 2026), while JPMorgan Chase expanded to MXN 3 bn with a 2027 term (previously MXN 1.5 bn maturing in 2025). Afore Sura became a participant in the credit lines (details were not disclosed); as such, Afore Sura is the first institutional investor to lend to Konfio. The company continues to move forward with its bank license request.
El Economista, 12/18/24, Sebastian Estrada: Goldman Sachs, JPMorgan Chase, Afore Sura Finance Konfío with MXN 7.4 Billion
Stori Reduces Interest Rates on Investment Products in Mexico
Effective January 3, 2025, Mexican fintech Stori lowered its interest rates across various investment products. The rate for demand deposits decreased from 14.5% to 13%, and fixed-term investments saw reductions ranging from 0.7% to 1.75%, with the highest rate offered now at 14.8%. These adjustments follow recent cuts to the central bank reference rate.
Xataka México, 01/02/25, Gonzalo Hernández: Stori Says Goodbye to 15.5% Rates
Nu Mexico Adds Gentera’s Yastás Network to Cash-in and out Options
Nu’s nine million customers in Mexico will be able to deposit and withdraw cash at the more than 5,000 businesses that are part of the Yastás network, a subsidiary of Gentera. Yastás has presence in 1,355 municipalities throughout the country.
El Economista, 12/18/24, Edgar Juárez: Nu Mexico’s Clients Will Be Able to Deposit and Withdraw Cash on Yastas’ Network
Farmacias del Ahorro acquires IFPE TUDI, Enhancing Loyalty Program
Drugstore chain Farmacia del Ahorro will launch its own fintech service following the acquisition of IFPE Tu Dinero (TUDI). Users will be able to deposit, transfer and withdraw cash, which the company is expected to integrate with its loyalty program. Farmacias del Ahorro joins other retailers such as Femsa’s Oxxo and Walmart in launching its own fintech oferring through an IFPE.
El Economista, 12/30/24, Fernando Gutiérrez: Farmacias del Ahorro to Launch Fintech in 2025
Advances and Challenges in Financial Inclusion in Mexico
Financial inclusion in Mexico has improved, with the percentage of people holding savings or debit accounts rising from 59% in 2018 to 65% in 2021, according to the National Survey of Financial Inclusion (ENIF). However, challenges such as market concentration and gender disparities remain. Five banks control 65% of financial assets and accounts, limiting competition. Additionally, a 14% gender gap persists, with 56% of men and only 42% of women accessing financial services. Experts suggest promoting regulatory frameworks that encourage innovation and competition between traditional banks and fintechs, alongside improving internet infrastructure to enhance accessibility and affordability.
El Financiero, 12/27/24, Miguel Ángel Gutiérrez: Advances and Challenges in Financial Inclusion in Mexico
Mexico Becomes Third Preferred Destination for Peruvian Fintechs Seeking International Expansion
According to the Finnovista Fintech Radar Perú 2024 report, 49.1% of Peruvian fintech startups are expanding internationally, with 20.8% choosing Mexico as their destination. This positions Mexico as the third most popular country for Peruvian fintechs, following Colombia (24.5%) and Chile (22.6%).
TyN Magazine, 12/20/24, Staff: Mexico Becomes Third Preferred Destination for Peruvian Fintechs Seeking International Expansion
Other news:
LATAM Fintech, 12/19/24, Staff: “MUNDI Fintech to Expand Export Financing Operations Across Latin America and Canada by 2025”
LatAm FinTech News
Nubank Invests $150 mn in South Africa’s Tyme Group
Brazilian fintech giant Nubank led the Series D round of Tyme Group, a digital bank backed by China’s Tencent with 15 million customers in South Africa and the Philippines. Founded in 2019, Tyme Group combines digital banking with physical experiences through partnerships with retailers, aiming to provide accessible banking solutions in emerging markets. The funding will help Tyme Group finance its push into Southeast Asia and list by 2028. Nubank will become a minority partner, with CEO David Vélez stating “we are excited to work with Tyme to share many of our learnings of scaling this model to hundreds of millions of customers”. While of a relatively small size (just about 0.3% of its US$52.3 bn market cap), the transaction also signals the company is not shying away from the added complexity of new geographies, as trends in Mexico remain particularly challenging.
Reuters, 12/17/24, Andre Romani and Nqobile Dludla: Brazilian digital lender Nubank invests $150 million in Tyme Group. Other sources: Nubank press release.
Agibank Secures $63 Million Investment to Fuel Growth and Potential IPO
Brazilian neobank Agibank has received a $63 million investment from Lumina Capital, valuing the bank at $1.75 bn. Agibank plans to use the funds to accelerate growth and explore a potential IPO in the coming years. The bank operates a hybrid model, combining digital banking with over 1,000 physical service centers to cater to low-income customers.
Latam Fintech Hub, 12/26/24, Staff: Agibank Secures US$63 mn Investment to Fuel Growth and Potential IPO
Itaú and Rappi End Credit Card Partnership in Chile
Itaú and Rappi have decided to terminate their RappiCard by Itaú credit card partnership in Chile. Existing cardholders will retain their cards under Itaú’s management, with the transition expected to conclude within 12 months. Launched in 2022, the partnership aimed to deliver a fully digital credit card experience. The decision reflects strategic adjustments by both companies, though specific reasons were not disclosed. It follows a similar split in Mexico, where Banorte took control of its JV with Rappi.
Diario Financiero, 12/20/24, Florencia Donoso: “Itaú and Rappi End Credit Card Partnership in Chile”
Itau to Acquire Uruguayan Payments Processor Plexo
Brazilian banking giant Itau has agreed to acquire Plexo, an online payments processor based in Uruguay. Terms were not disclosed. Itau, which has previously acquired other fintech companies, aims to bolster its digital offering, both for companies and individuals.
El Observador, 12/29/24, Staff: Itau to Acquire Uruguayan Payments Processor Plexo.
Argentine Congress Considers Regulating Delivery Apps
The Argentine Congress is debating legislation to regulate platforms like Rappi and Uber. One bill, proposed by Cristian Ritondo (PRO), seeks to preserve couriers’ independent contractor status, while another, by Vanesa Siley (Unión por la Patria), aims to classify their relationship with apps as formal employment under the Labor Contract Law. The lack of regulation has resulted in legal disputes and labor violations, prompting lawmakers to propose clearer rights and obligations for all parties involved.
iProUP, 12/19/24, Maru Pol: “Argentine Congress Considers Regulating Delivery Apps”
Other news:
Latam Fintech Hub, 12/19/24, Staff: Fintech Bold acquires Tuily, the business credit platform, to enhance its financial services solutions in Colombia.
LatamList, 12/23/24, Hellen Villena: Conta Comigo Digital Raises US$525K to Expand Payment Platform.
Global FinTech News
Best Egg Secures US$1 bn to Expand Vehicle Equity Loans
Best Egg, a fintech company focused on loans secured by the borrowers’ autos, has arranged a US$1 bn purchase facility to expand its vehicle equity loan offerings. This funding will enable Best Egg to provide more consumers with access to loans using their vehicles as collateral.
FinTech Global, 12/19/24, Staff: Best Egg secures $1bn funding to expand vehicle equity loans.
Other news:
FinTech Global, 01/02/25, Staff: Alif raises $20m from Accial Capital to expand Shariah-compliant finance
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