Mexico Fintech Chatter – Mar. 3, 2025

Mexico FinTech News

Playing the Long Game: FEMSA to Apply for Banking License to Expand Financial Services

After much speculation, Femsa confirmed in its quarterly conference call it plans to apply for a banking license in the coming months to strengthen and diversify its financial services. CEO José Antonio Fernández Carbajal stated that the company aims to create a comprehensive digital financial ecosystem. The company said it does not initially plan to make a large foray into credit, presumably to mitigate markets concerns about the company entering a high-risk capital-intensive business in which it has little expertise. It also said that it might look for partners in credit area. “We’re not — we have no intentions currently to make any large significant bets with regards to credit. We will be experimenting, including exploring the possibility of finding a partner for the credit part of that business to ensure that we do it not only as responsibly as possible, but responsibly and quickly, understanding that those financial services are a key element of monetizing a digital payment strategy.”

FEMSA currently operates Spin by OXXO, a digital wallet with 13.1 million users and 63.2 million transactions per month. The company is also expanding OXXO Pay, enhancing remittance services, and integrating new financial solutions for businesses.

El Economista, 02/27/25, Judith Santiago: “FEMSA to Apply for Banking License to Expand Financial Services”

Finnovista 2025 Mexico Report

The Finnovista Fintech Radar México 2025 report highlights a 4% growth in local Fintechs, with revenues up 31%, showing industry maturation. Foreign Fintechs now represent nearly 50% of the market, intensifying competition. Payments & Remittances is the fastest-growing segment, with crypto adoption increasing for remittances and B2B transactions. AI is widely used in risk management and automation. Mexico captured 60% of regional VC funding, with Open Finance regulation advancing. Collaboration with traditional financial institutions is growing, shaping the ecosystem’s future.

Link to report.

Highlights from FinTech Mexico Festival 2025

The fully sold out FinTech Mexico Festival 2025 was a big success, featuring all of Mexico’s relevant fintechs, prominent corporates, investors and consultants, as well as government officials and regulators. Kudos to the organizers. Other Mexico fintech conferences will find it hard to match its success.

Attendees mostly heard that Mexico’s FinTech sector is experiencing rapid revenue growth, driven by digital transformation, financial inclusion initiatives, and technological innovation, all to the benefit of the Mexican consumer. For companies like Bitso, Kapital, Mercado Pago, Fintual, and others, that is accurate. However, while the FinTech successes need to be celebrated, some concerns could be heard, often in the corridors. Few of the Mexican-born Fintechs are currently profitable, and none of them has become a public company, unlike in Brazil (Nu, among many others), and Argentina (Mercado Pago, via Mercado Libre). Most of Mexico’s FinTechs have been held back by burdensome regulation overly focused on ensuring financial stability rather than promoting innovation, a cash-dominated economy and failure of Codi/DiMo to take off, a risk-averse, unsophisticated Mexico consumer strongly influenced by a brand’s trust and longevity, and tough and not always fair competition from incumbents.

Below are some brief notes on some of those who went, and some of their key messages. (This is not exhaustive.)

Círculo de Crédito

• What it does: A credit information company specializing in data analysis to assess credit risk and financial inclusion.
• Opportunities in Mexico: Recognizes the potential of alternative data to improve credit evaluation, particularly using factors like mobile identity, reported addresses, and employment stability.
• Challenges: The main barrier is consumer trust in sharing personal data. Additionally, compliance with strict data privacy regulations remains a significant challenge.

MO Credit Management Platform

• What it does: A credit management platform operating in 11 Latin American countries.
• Opportunities in Mexico: Sees high demand for efficient credit management solutions and a financial ecosystem in need of more streamlined processes.
• Challenges: The Mexican regulatory framework, building trust with users, and competing with well-established financial institutions pose challenges for growth.

Puntored

• What it does: A digital payments platform that facilitates transactions across multiple sectors, handling over 500 million transactions annually.
• Opportunities in Mexico: The rising adoption of digital payments and the ability to serve the unbanked population present significant growth opportunities.
• Challenges: Integration with traditional financial institutions, ensuring transaction security, and educating consumers on digital payments.

Deloitte

• What it does: A global consulting firm with expertise in financial technology and regulatory compliance.
• Opportunities in Mexico: Believes that regulatory standardization could accelerate innovation and strengthen Mexico’s financial market.
• Challenges: Unclear FinTech regulations could slow the sector’s ability to adapt and grow, potentially limiting competition.

Mastercard

• What it does: A leading global payments company specializing in credit, debit, and digital transactions.
• Opportunities in Mexico: Sees huge potential in digital payments, particularly through contactless transactions, which now make up 70% of total payments.
• Challenges: Low digital infrastructure, consumer resistance to cashless transactions, and a strong cultural reliance on cash.

Incode

• What it does: A cybersecurity company focused on digital identity verification and fraud prevention.
• Opportunities in Mexico: Growing demand for secure digital transactions and the rise of financial services requiring biometric authentication.
• Challenges: Increasingly sophisticated cyber threats, balancing privacy concerns with security, and adapting to evolving international cybersecurity regulations.

Visa

• What it does: A global leader in payment processing and digital transactions.
• Opportunities in Mexico: Believes in expanding tokenization to improve real-time payments security and reducing fraud.
• Challenges: Consumer education remains a hurdle, along with low adoption of digital payments in Mexico’s economy.

Blip Latam

• What it does: A company developing AI-powered solutions for financial services.
• Opportunities in Mexico: AI-driven customer service automation and predictive analytics for credit scoring and fraud prevention.
• Challenges: Regulatory uncertainty around AI applications in financial services and ensuring fairness and transparency in AI-driven decisions.

Celestial Dynamics

• What it does: A company specializing in cutting-edge financial technology applications.
• Opportunities in Mexico: Expansion of blockchain-based solutions and the integration of AI in financial operations.
• Challenges: Lack of public awareness about emerging technologies and regulatory concerns regarding their implementation.

Fintual

• What it does: A digital investment platform focused on democratizing financial services.
• Opportunities in Mexico: Sees a large, underserved market for simple and accessible investment products.
• Challenges: Low financial literacy, competing with traditional banks, and overcoming consumer distrust in digital platforms.

Tec-Check

• What it does: A digital consumer protection platform for financial services.
• Opportunities in Mexico: Addressing transparency issues in FinTech services and advocating for better consumer rights.
• Challenges: The lack of financial regulation enforcement and consumer awareness about digital financial protections.

Theodora AI

• What it does: A startup specializing in artificial intelligence applications in finance.
• Opportunities in Mexico: Growing demand for AI-driven risk analysis and fraud detection in banking.
• Challenges: Compliance with AI regulations, access to high-quality data, and ensuring ethical AI use.

Spin by OXXO

• What it does: A digital payments platform backed by OXXO, Mexico’s largest convenience store chain.
• Opportunities in Mexico: Direct access to 80 million monthly OXXO customers provides an edge in digital payment adoption.
• Challenges: Competing with banks and digital wallets, ensuring interoperability, and driving user adoption.

Kueski

• What it does: A FinTech specializing in Buy Now, Pay Later (BNPL) and instant loans.
• Opportunities in Mexico: Bridging the credit gap for underbanked consumers who need flexible financing options.
• Challenges: High default risks, regulatory scrutiny on BNPL products, and intense competition.

Tala

• What it does: A digital microlending platform focused on financial inclusion.
• Opportunities in Mexico: Reaching unbanked populations through alternative credit scoring.
• Challenges: High non-payment rates, fraud risks, and adapting to tightening financial regulations.

Nu México (Nubank)

• What it does: A digital-first banking service offering credit cards and digital financial products.
• Opportunities in Mexico: Massive market potential, as 50% of its customers are first-time credit card users.
• Challenges: Regulatory ambiguity, gaining trust among consumers accustomed to traditional banking institutions.

Mercado Pago

• What it does: The financial services arm of Mercado Libre, offering digital payments, credit, and remittances.
• Opportunities in Mexico: Expansion of e-commerce payment solutions and increasing digital banking penetration.
• Challenges: Regulatory complexity, competition with traditional banks, and maintaining consumer trust.

Plata Card

• What it does: A credit card provider focused on financial inclusion.
• Opportunities in Mexico: High demand for alternative credit solutions among underbanked consumers.
• Challenges: Managing high-risk lending, mitigating default rates, and competing with larger financial institutions.

Coppel

• What it does: Initially a department store operator, Coppel has grown into one of the largest financial services providers in Mexico, operating both a bank and a pension fund manager (Afore).
• Opportunities in Mexico: Coppel offers a diverse and comprehensive range of financial products, primarily targeting the lower-income sector. As its customers’ financial needs evolve and their incomes grow, the company continues to expand its services while maintaining a strong focus on transparency and relevance, which drives client retention.
• Challenges: Limited financial literacy and low access to financial background information contribute to general distrust of financial services.

Aviva

• What it does: Financial services for Mexico’s underbanked populations via tech-enabled kiosks located in cities of less than 500,000 inhabitants.
• Opportunities in Mexico: The majority of Mexico’s underbanked live in non metropolitan areas where access to financial services are limited and mistrust of 100% digital is high.
• Challenges: Expanding their physical footprint, underwriting a segment with no formal credit history, building trust with users.

Bitso

• What it does: Largest Crypto exchange in Latin America.
• Opportunities in Mexico: The rising use of Stablecoins has the potential to transform the remittances industry.
• Challenges: Regulatory framework; financial literacy, particularly in crypto.

Ualá

• What it does: Licensed bank, operating entirely digitally.
• Opportunities in Mexico: Low financial inclusion translating into high demand for credit from new digital disruptors.
• Challenges: Fierce competition from other fintechs has prevented Ualá from achieving the same level of success as in its home country, Argentina, despite being the only fully digital player with a bank license at this point.

LatAm FinTech News

Solfácil obtains US$170 mn financing to Expand Solar Financing in Brazil

Brazilian solar fintech Solfácil secured US$170 mn through a Credit Rights Investment Fund, bringing its total funding to over US$850 mn in debt and equity. The company provides solar loans and equipment for residential and small business installations, working through sales integrators. With the funds, Solfácil aims to expand its solar kit financing as declining equipment prices make solar energy more attractive.

LatamList, 02/26/25, Hellen Villena: “Solfácil Raises US$170 mn to Expand Solar Financing in Brazil”

Capim Raises US$26.7 mn to Expand Digital Lending and POS Solutions in Brazil

Brazilian fintech Capim secured US$26.7 mn in a Series A funding round co-led by Valor Capital and QED Investors. Founded in 2021, it specializes in buy now, pay later solutions for dental services and aims to expand its financial offerings with a point-of-sale system.

Latam Fintech, 02/28/25, Staff: “Capim, Brazilian Digital Lending Fintech, Raises US$26.7 mn to Expand Financial Offerings with a POS Terminal”

Global FinTech News

ResilienceVC Launches US$56 mn Fund to Back Fintechs Focused on Financial Inclusion

Washington, D.C.-based ResilienceVC raised a US$56 mn fund to invest in fintech startups addressing homeownership, insurance, and financial access for underserved Americans. Founded in 2023, the firm plans 25 investments with $1 million initial checks, focusing on AI-driven and embedded fintech solutions.

TechCrunch, 02/27/25, Mary Ann Azevedo: “ResilienceVC Bucks Trend, Unveils US$56 mn Fund to Back Fintechs Working on Financial Inclusion”

ClearScore Secures £30 mn from HSBC Innovation Banking for Global Expansion

ClearScore, a financial marketplace helping consumers access credit scores and compare financial products, has secured £30 mn in debt financing from HSBC Innovation Banking UK. This funding will support ClearScore’s next growth phase, expanding its range of financial services and increasing user access across multiple channels. Operating in the UK, South Africa, Australia, New Zealand, and Canada, ClearScore currently serves over 24 million users.

FinTech Global, 02/25/25, Staff: “ClearScore Secures £30M from HSBC Innovation Banking UK to Drive Global Expansion”

Additional reading…

• Flanks raises €14m: Barcelona-based Flanks secures €14m to expand wealth management data platform into the UK, Germany, and Nordic markets.
• Stripe processed $1.4tn in 2024 as it publishes its annual letter: Stripe’s TPV grew 38% YoY, reaching $1.4tn, with strong AI investments and profitability, now valued at $91.5bn.
• Marqeta acquires TransactPay: Marqeta buys TransactPay, a BIN sponsorship provider, strengthening its UK/EU presence and boosting digital payments capabilities for customers.

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