Mexico FinTech News
Cyrpto Rally and Stablecoin Use Boosts Bitso as it Expands Yield Feature
Booming Bitso has added Ether (ETH) and Solana (SOL) to its yield feature, with Cardano (ADA) and Polkadot (DOT) set to launch in early December. Users can earn weekly interest on these assets and existing stablecoins USDC and USDT. Annual rates range from 2% to 4% for stablecoins, with variable rates for the new cryptocurrencies updated weekly based on market conditions. The huge rally in crypto this year, and wide acceptance of stable coins offered by Bitso in managing cheaply exchange rate risk for remittances for players like Elektra and Felix Pago, has been a boom for Bitso, which is very likely Mexico’s most profitable Fintech. Good news for Tiger Global, Pantera, Paradigm, Cometa, Coatue, QED and Kaszek, some of Bitso’s main investors. In October 2024, Stripe, the leading global payments company, acquired Bridge, a stablecoin infrastructure founded in just 2022, for $1.1 billion, underlying the huge interest in deploying stablecoins built on blockchain in global payments. Will Bisto be next?
Axis Negocios, 11/21/24, Staff: Bitso adds new coins to yield feature.
Stori Maintains High Yields Despite Banxico’s Cuts
While Banxico reduced its benchmark interest rate from 11.25% to 10.25% in 2024, and other FinTechs such as Nu have cut rates on deposits, Stori has opted to maintain a rate of up to 15.5% in its investment products. Salomón Woldenberg, Stori’s Director of Public Policy, affirmed the company’s commitment to offering competitive rates, ensuring they remain unchanged through early 2025. With Nu under pressure from investors to cut yields on deposits and thus reduce its huge losses in Mexico, it will be interesting to see how sticky its customers are – or whether they move to Stori, Uala, Openbank and others.
Plano Informativo, 11/22/24, Staff: Stori Maintains High Interest Rates Despite Banxico’s Cuts
Minu Raises $30M Series B Round Led by QED Investors
Minu, a Mexican fintech focused on employee benefits, has raised $30 million in a Series B funding round led by QED Investors, with participation from investors like Flourish Ventures, Clocktower Technologies, and Endeavor Catalyst. Founded in 2019, Minu provides employee benefits such as health services, insurance, transportation vouchers, savings accounts, and earned wage access. Serving over 1 million employees from 2,000+ companies, including Citibanamex and Capgemini, Minu claims to reduce employee turnover by 33%. The funds will enhance its offerings and support expansion in Mexico.
LatamList, 11/22/24, Matheus Tome: Minu raises $30M series B round led by QED Investors
Solvento Lands $12.5M Series A Led by Cometa
Solvento, a Mexican fintech providing liquidity solutions for the trucking industry, has raised $12.5 million in a Series A funding round led by Cometa, with participation from Quona Capital, Ironspring Ventures, Dynamo Ventures, and others. Since its founding in 2021, Solvento has financed over $180 million in loans for 1,400 trucking companies and processed more than 100,000 freight invoices. The funds will help scale its software and financial solutions in Mexico and expand services to the U.S., targeting growth from 500 to 5,000 active carriers by the end of 2025.
LatamList, 11/21/24, Hellen Villena: Solvento lands $12.5M Series A led by Cometa.
TechCrunch, 11/23/24, Staff: Trump’s Tariff Threats Don’t Scare This Mexican Fintech.
Albo Teams Up with Paymentology to Broaden its Offering
Albo, a neobank headquartered in Mexico City, has teamed up with issuer-processor Paymentology to expand its digital payment solutions and strengthen its market position in Mexico. By incorporating Paymentology’s digital platform, Albo is expected to broaden its offering for small businesses, enabling them to “handle payroll and other essential transactions”.
Fintech Futures, 11/20/24, Cameron Emanuel-Burns: Mexico’s Albo partners Paymentology to expand digital payment services.
Other News
El Economista, 11/19/24, Yuridia Torres: Identifying Safe Digital Loans.
LatAm FinTech News
Mercado Pago Dismisses Plans to Operate as a Bank in Argentina, Focuses on Mexico
Mercado Pago, the financial arm of Mercado Libre, confirmed that it is not pursuing a banking license in Argentina, clarifying recent misinterpretations about its regulatory plans. The fintech emphasized that it evaluates appropriate frameworks in each market. Mercado Pago is currently focusing on Mexico, where it is pursuing a banking license to expand its offerings. The announcement comes amid disputes with Argentine banks over QR code payment interoperability, with traditional banks accusing Mercado Pago of monopolistic practices.
DFSUD, 11/19/24, Déborah Donoso: Mercado Pago dismisses plans to operate as a bank in Argentina, focuses on Mexico.
Frontal Trust and Mercado Pago Launch Private Debt Fund to Finance SMEs in Chile
Frontal Trust, an alternative investment firm, and Mercado Pago have partnered to launch Frontal Trust Mercado Pago Créditos FI, a private debt fund targeting small and medium-sized enterprises (SMEs) in Chile. The fund aims to raise over US$60 million to finance over 60,000 SMEs with loans averaging US$5,150 and terms ranging from 1 to 18 months. Offering monthly dividends to investors, the fund combines bank financing with capital contributions from Mercado Pago, addressing a 50% decline in traditional bank lending to SMEs since the pandemic.
Funds Society, 11/19/24, Staff: Frontal Trust and Mercado Pago Launch Private Debt Fund to Finance SMEs in Chile.
Colombia’s Addi Lands US$100 Million Credit Line to Expand BNPL
Colombian BNPL fintech Addi has nabbed a $100 million credit facility from private capital manager Victory Park Capital. The startup began turning a profit earlier this year and received regulatory approval to become a bank, it said in a statement.
Reuters, 11/19/24, Kylie Madry: Colombia’s Addi lands $100 million credit line to expand buy now, pay later service.
Brazilian Digital Banks Now Account for 18% of Unsecured Consumer Loans
According to a report by the Brazilian Central Bank, digital banks now account for 18% of unsecured consumer loans (i.e., excluding payroll loans); they represent 22% of the balance of credit cards in the country. While the report highlighted the improvement in operational efficiency, it also cautioned digital banks are taking more risks, growing at a faster pace in unsecured segments.
Finsiders Brasil, 11/21/24, Staff: Digital Banks Now Account for 18% of Non-Payroll Loans.
Nubank Considers Relocating Legal Domicile to the United Kingdom
Brazilian fintech Nubank is exploring the possibility of relocating its legal domicile to the United Kingdom. Currently headquartered in the Cayman Islands and listed on the New York Stock Exchange, the move aligns with the UK government’s push to attract tech companies. Nubank’s corporate headquarters will remain in São Paulo, Brazil, but the legal shift could enhance global operations and regulatory alignment.
Bloomberg Línea, 11/20/24, Alex Wickham: Nubank considers relocating legal domicile to the United Kingdom.
Nubank Introduces Cryptocurrency Exchange Feature in Its App
Nubank has launched a new feature enabling Brazilian users to exchange cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Uniswap (UNI) for USD Coin (USDC) directly within its app. The functionality, accessible through the cryptocurrency section, will roll out in the coming weeks. Thomaz Fortes, Nubank’s Executive Director of Cryptocurrencies, highlighted that this tool meets customer demand for integrating crypto assets into their strategies.
Cointelegraph, 11/19/24, Katha Jimenez: Nubank launched a cryptocurrency exchange tool in its application.
Other News
LatamList, 11/18/24, Adriana Villasana: Nicaraguan Tumoni raises $2.3M in pre-seed round to bank U.S. migrants.
FinTech Global, 11/22/24, Staff: Dutch Startup Qash Launches in Colombia
Global FinTech News
Trump Considering ‘Pretty Significant’ Changes to CFPB
As part of moves to deregulate finance (and thus among other impacts boost crypto), President-elect Donald Trump and congressional Republicans are reportedly considering sweeping changes to the Consumer Financial Protection Bureau (CFPB), curtailing its powers and funding. Rohit Chopra, the Democrat who heads the bureau, has aggressively pursued efforts to help consumers switch banks and avoid overdraft fees. Republicans have opposed these works, accusing the CFPB of regulatory overreach.
PYMTS, 11/24/24, Staff: Trump Considering ‘Pretty Significant’ Changes to CFPB.
Moody’s Acquires Numerated Growth Technologies, Expanding Lending Technology Solutions
Moody’s Corporation has acquired Numerated Growth Technologies, a loan origination platform for financial institutions. This acquisition enhances Moody’s Lending Suite, offering an end-to-end loan origination and monitoring solution. Numerated’s platform, used by financial institutions managing $3 trillion in combined assets, has processed over $65 billion in loans. While financial terms were not disclosed, the acquisition is not expected to significantly affect Moody’s 2024 financial results.
FF News, 11/22/24, Staff: Moody’s Acquires Numerated Growth Technologies, Expanding Lending Technology Solutions.
Other News
FinTech Magazine, 11/22/24, Staff: SAVE THE DATE: FinTech LIVE New York
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