Mexico FinTech News
The end of Bineo? Enters “restructuring” process
Just last week we questioned the viability of Bineo, Banorte’s fully digital stand-alone bank. Now, press reports indicate the fintech has entered a “restructuring” process to “define the appropriate path forward”. The app no longer accepts new users, (“De momento estamos en actualización debido a que vamos a integrar más productos” is the response on the helpline) and according to El Economista the product and innovation teams have been laid off. We also note its X’s account has been idle since March 12, though current users have not been notified of any changes. Having started operations in early 2024, this about-face from Banorte would be shocking – if it weren’t for the fact that Bineo’s results have been shockingly weak (F1 fans will readily draw parallels to Red Bull’s decision to demote Liam Lawson after just two races – it’s been that bad). It’s unclear at this point what the appropriate path forward will be, though if Banorte were to decide to cut its losses and sell Bineo, there would not be a shortage of interested parties in its bank license. Looking at the glass half full, with less than MXN 50 million in loans, the due diligence process would probably be fairly straightforward. By contrast Banorte’s fully consolidated but separate RappiCard seems to be doing well. Perhaps Banorte should buy out Rappi’s now minority stake and merge the Bineo/RappiCard entities, keeping the successful Rappi brand for youth-targeted digital credit cards.
El Economista, 03/30/25, Fernando Gutiérrez: “Neobank Bineo enters restructuring stage”
Mendel Raises US$35mn Series B to Expand AI-Powered Expense Management Across Latin America
In very positive news for the sector, Mexican fintech Mendel, which specializes in enterprise expense management, has raised US$35 million in a Series B round led by Base10 Partners, with participation from PayPal Ventures, Endeavor Catalyst, Hi Ventures, and others. As reported by TechCrunch, the raise brings Mendel’s total equity funding to $60 million, in addition to $50 million secured through a credit facility. The company last raised $15 million in equity and $20 million in debt in Y Combinator’s Winter 2021 cohort. Founded in 2021, Mendel offers a comprehensive platform that integrates expense management, payments, and corporate travel tools tailored for large enterprises. Its mission is to automate CFO operations and serve as a one-stop solution for all B2B spend. Its SaaS-based pricing model (50% of revenues) distinguishes it from competitors like Clara and Jeeves, which primarily target SMBs and rely more heavily on transactional interchange fees. Its client base includes Mercado Libre, FEMSA, and McDonald’s. Mendel currently operates in Mexico and Argentina and serves approximately 500 customers. The company has 80 employees, up from 64 a year ago. It plans to expand into Chile, Colombia, and Peru in 2025, and Brazil in 2026. Part of the new funding will go toward AI development, the growth of its Mendel Viajes corporate travel module, and global talent acquisition.
TechCrunch, 03/27/25, Mary Ann Azevedo: “YC alum Mendel, a ‘Ramp for LatAm enterprises,’ raises $35M Series B” | Other sources: Latam Fintech, 03/28/25, Staff: “Mendel Raises US$35mn to Expand Its Expense Management Platform Across LatAm”
Walmart rules out bank license, for now
Walmart México continues to move forward with its plans to launch its debit card through its fintech platform, Cashi, ruling out moving beyond its IFPE license, at least for the time being. While fintech challengers like Nubank, Plata and Stori compete in lending, Oxxo’s Spin plans its own bank license (though at a decidedly slower pace), Walmart stands as the most conservative, with no plans of providing loans directly, but through a market place. Instead, the company seems to be planning to replicate the strategy is has followed with its MVNO, Bait, treating it not as a stand-alone business, but as another tool to foster customer loyalty.
El CEO, 03/26/25, Roberto Noguez: “Walmart readies Cashi account to compete with Nu and Spin”
Neobanks and Fintechs Turn to Sports Sponsorships to Boost Visibility in Mexico
Fintechs and neobanks in Mexico are increasingly leveraging sports sponsorships, especially in football, to build brand recognition and attract new clients. Ualá has integrated its branding into Liga MX broadcasts, including mentions during yellow and red card moments. Stori, a sofipo, partnered with Atlas FC and Santos to launch co-branded credit cards. Meanwhile, Bankaool, a traditional bank being digitized by Grupo Omni, became a sponsor of Cruz Azul in 2024. The latest entrant, Openbank, Santander’s digital bank, secured naming rights for the Kings League Openbank Americas. Legacy banks have been long-time supporters of Mexican football, with BBVA being the title sponsor of the Liga Mx, and Banorte recently acquiring the naming rights of the Estadio Azteca.
Bloomberg Línea, 03/24/25, Italia López: “Neobanks and Fintechs Turn to Sports Sponsorships to Boost Visibility in Mexico”
Bitso Launches Peso-Backed Stablecoin MXNB to Facilitate Cross-Border Payments
Bitso Business has launched Juno, a new independent platform focused on issuing stablecoins, debuting with MXNB, a digital asset backed 1:1 by the Mexican peso. MXNB aims to streamline cross-border payments by offering faster, lower-cost transactions via Arbitrum, an Ethereum Layer 2 network. Juno allows companies to convert USD-backed stablecoins into MXNB and operate across Latin America more efficiently. All MXNB reserves will be fully backed and third-party audited, ensuring transparency. According to Bitso, the use of stablecoins is gaining momentum globally, with over US$230 bn in market capitalization as of March 2025. Bitso sees MXNB as a tool to support payments, remittances, DeFi, and gaming, while boosting financial infrastructure and global business accessibility across the region.
El Economista, 03/26/25, Sebastián Estrada: “Bitso Business launches peso-backed stablecoin to facilitate cross-border payments”
Over Half of Mexicans Have Switched Their Primary Bank, Driven by Fintech and Digital Trends
A new report by FICO reveals that 56% of Mexicans have changed their primary bank in the last decade, with the rise of fintech, open finance, and competitive interest rates playing a central role. Key reasons include the search for better value (45%), improved customer experience (44%), and user-centric services (36%). Age also influences loyalty, with older clients less likely to switch. Consumers increasingly demand personalized communication, with only 33% feeling their institution uses their preferred channel. The top reasons for leaving a bank include fraud (56.7%), poor service (54.2%), and weak mobile apps (43.1%).
El Economista, 03/26/25, Sebastián Estrada: “Over half of Mexicans Have Switch their Primary Bank, driven by Fintech and Digital Trends”
Nubank to Expand in Mexico Despite Recession Concerns
Nubank confirmed it will continue expanding in Mexico throughout 2025, despite economic recession concerns. With over US$1.4 bn invested in the country since 2019, Nu has reached 10 mn customers, covering 12% of the adult population and 23% of the banked segment. It holds over 93 billion pesos in deposits. Nu executives emphasized their long-term commitment, citing low credit penetration in Mexico as a major growth opportunity.
El Financiero, 03/26/25, EFE: “‘Without fear of dying’: Nubank to expand in Mexico despite recession concerns”
Additional reading…
LatAm FinTech News
Uruguayan Cybersecurity Startup Strike Raises $13.5M to Scale
Strike, the Montevideo-based cybersecurity startup, has raised $13.5 million in a Series A round led by FinTech Collective, with backing from Galicia Ventures, Greyhound Capital, FJ Labs, Canary, and Carao Ventures. Strike was founded by Santiago Rosenblatt, a former child prodigy hacker who made headlines for breaching major platforms like PayPal and the NBA before age 15. Now, alongside co-founder Facu Lopez Juncal, he’s channeling his skills into building Strike360 — an AI-powered platform that automates penetration testing. It identifies vulnerabilities in real time, reduces detection times from months to seconds, and simplifies compliance reporting. With this new funding, Strike plans to grow its team, expand into Brazil and the U.S., and further develop its technology. The goal: to automate 50% of the pentesting process by the end of 2025. As demand surges for real-time cybersecurity in fintech and enterprise sectors, Strike aims to offer a scalable, tech-first alternative to traditional security firms.
Silicon Angle, 03/26/25, Duncan Riley: “Strike raises $13.5M to expand its AI-driven continuous penetration testing platform”
Betterfly closes in Five Latin American Countries
Chilean insurtech Betterfly has exited Argentina, Brazil, Colombia, Ecuador, and Peru as part of a strategic reorganization, now focusing on Chile, Mexico, and Spain, where 94% of its revenue is generated. The company plans future expansion into the United States, citing its significantly larger healthcare market. Founded in 2018, Betterfly reached unicorn status in 2022 and operates a B2B2C model, offering employers life and health insurance products that increase in coverage based on employee engagement with wellness activities.
LatamList, 03/24/25, Matheus Tomé: “Betterfly Ceases Operations in Five Latin American Countries”
PedidosYa Launches Financial Services for Restaurants and Gig Workers
Uruguayan foodtech PedidosYa has expanded into financial services, offering working capital loans and digital wallets to restaurants on its platform, with plans to roll out similar tools for gig workers. CEO Esteban Gutiérrez stated that the company aims to empower partners to make transfers, pay suppliers, access credit cards, receive early payments, and invest through a wallet-like account, without functioning as a bank. Active in 15 Latin American countries, PedidosYa continues to grow its influence by integrating financial products into its existing logistics and delivery ecosystem.
LatamList, 03/24/25, Matheus Tomé: “PedidosYa Launches Financial Services Offerings”
Global FinTech News
Mercury Raises US$300 mn Series C Led by Sequoia, Reaching US$3.5 bn Valuation
Mercury, a U.S.-based business banking fintech, has raised US$300 mn in a Series C funding round led by Sequoia Capital, bringing its post-money valuation to US$3.5 bn. The round follows steady growth in the company’s client base and platform adoption. Alongside the funding, Mercury announced the addition of four new directors to its board, signaling a move to further scale its operations and product offerings for startups and small businesses.
FinTech Futures, 03/27/25, Tyler Pathe: “Mercury Raises US$300 mn Series C Led by Sequoia, Valuation Tops US$3.5 bn”
Block slashes headcount, holds no punches in Dorsey email
Block, Inc., the financial technology company led by CEO Jack Dorsey, recently laid off approximately 8% of its workforce, totaling 931 employees. In an email to staff, Dorsey explained that 391 positions were eliminated due to strategic shifts, 460 for performance-related reasons, and 80 to flatten the company’s hierarchy. He acknowledged that the company was “behind in our actions”. These layoffs come amid concerns over Block’s underperformance in the first quarter and its current valuation, with shares trading below $60.
TechCrunch, 03/25/25, Charles Rollet and Maxwell Zeff: “Read the email Jack Dorsey sent when he cut 931 of Block’s staff”
Deutsche Bank Backs London Fintech Abound with £250 mn to Expand AI-Based Lending
Abound, a UK-based consumer lending fintech, secured £250 mn in financing from Deutsche Bank to scale its operations and advance its AI-powered lending platform. The company leverages Open Banking data and artificial intelligence to offer lower-interest personal loans, improving credit decisions beyond traditional credit scores. With this funding, Abound aims to expand its loan portfolio, enhance its technology, and make affordable credit more accessible to underserved consumers.
FinTech Global, 03/27/25, Staff: “Deutsche Bank Backs London Fintech Abound with £250 mn”
Checkout.com’s Intelligent Acceptance Surpasses US$10 bn in Added Merchant Revenue
Checkout.com announced that its Intelligent Acceptance platform has now generated over US$10 bn in additional revenue for merchants, just 21 months after launch. The AI-driven system applies real-time optimizations across every step of the payment process—including routing, authentication, and retries—powered by over 20 billion data points. The platform is used by global brands such as Vinted, Papa Johns, and Delivery Hero, helping increase acceptance rates by an average of 3.8% in 2024. The company processes over 60 mn payment optimizations daily, aiming to close the revenue gap caused by online transaction friction and regulatory complexity.
The Fintech Times, 03/25/25, Staff: “Checkout.com Reflects on Intelligent Acceptance Success: Surpasses US$10 bn in Merchant Revenue”
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