Mexico FinTech News
Citi’s choice: Larrea re-enters the picture – could he spoil Chico Pardo’s deal?
On Friday (Oct. 3) after the close, Grupo México surprised the market by announcing an unsolicited competing bid for Banamex, just over a week after Citi announced a deal to sell a 25% stake to Fernando Chico Pardo. Grupo México was previously close to acquiring Banamex outright in 2023, but that deal fell through amid tensions between Grupo México’s Germán Larrea and then-president AMLO. Like Mr. Chico Pardo’s, the bid is at a steep discount to book value (0.85x for a 25% stake, and the remaining 75% at 0.80x, or 0.8125x for the entire group); however, as the breakdown shows, the bid is for the entirety of Banamex (unless Mr. Chico Pado wants to keep a 25% stake). This would allow Citi to more quickly cash out and immediately free up capital required from its remaining majority stake, but at the expense of adding regulatory uncertainty to closing the deal with a more mercurial buyer, and foregoing the potential upside for its remaining 75% stake of a successful turnaround. Further complicating matters, there are several moving pieces that could come into play – and whose details are not totally clear at this time.
What would be the cost of Citi walking away from its deal with Chico Pardo? Even if neither the press release nor the SEC filing contained the word “binding”, our educated guess would be that there would be a break-up fee (speculated by some at US$150mn or so). That would not itself be an insurmountable obstacle, as long as the Grupo México bid was sufficiently attractive (in terms of price and regulatory certainty) to compensate for that payment. That would leave Mr. Chico Pardo still richer, and would be somewhat ironic: 20 years ago, Mr Chico Pardo paid an equivalent to a break-up fee to Grupo México by matching its bid for government shares in ASUR (one of the reasons the two businessmen apparently do not get on, in addition to tensions arising Grupo México’s unsuccessful hostile bid (via its Planigrupo subsidiary) for Chico Pardo controlled shopping center group, Acosta Verde).
Could Mr Chico Pardo and partners raise his bid to 100%, or raise the price for 25%? We doubt it. Mr Chico Pardo, previously stated he’s not interested in a larger stake but of course that could change now that Grupo Mexico’s 100% bid has emerged. But our educated guess is that Mr. Chico Pardo will stay put. He very likely does not have the liquidity to buy anything like 100% of Banamex and it is not his style to get into bidding wars. Plus, he might quite like the break-up fee for a few months’ work.
Could Citi get the government’s green light to sell to Larrea? A potential break-up fee might be overcome, but that would be moot without President Sheinbaum and Hacienda’s approval of the new bid. It’s difficult to say for sure what her stance will be. Mr. Larrea was a guest at President Sheinbaum’s first state of the union address, suggesting they are at least on cordial terms, even if clearly not friends. For now, sources have told Bloomberg the government is “supportive” of the deal with Mr. Chico Pardo. Sheinbaum and the government may not want to give more power to Mexico’s second richest man, who is clearly no fan of 4T, and is somewhat odd. But as Grupo Mexico is generating about US$6.5 bn of free cash flow a year, it could promise Sheinbaum’s government lots of new and badly needed investment to help win its support. Money talks, especially when the economy is barely growing.
What about Citi? As Mr. Larrea already pulled out of one bid for Banamex, and is to say the least answerable to no one but himself, the top brass at Citi may simply decide it is too risky pursuing a deal with the mercurial multi-billionaire. One assumes relations are poor after the first deal’s collapse that put egg on the face of Citi CEO Jane Fraser. They cannot risk losing the Chico Pardo bid and then have the new Grupo México one fall through. But Grupo México has the cash on hand, and could simply deposit the required money in Citi’s account, and mostly derisk the deal. And emotions aside, Citi has a fiduciary obligation to accept the best deal for shareholders, or risk shareholder suits.
Could yet another competing bid emerge? “Never say never” most definitely applies to investment bankers pursuing deals (and fees). Prior to Chico Pardo’s bid, rumours were circulating that Grupo Financiero Invex and its shareholders were interested. But it’s tough to compete with Larrea’s fire power, so our best guess is that others will sit this out. Two rough and tough Mexican billionaires fighting for a prized asset is probably enough.
Bloomberg, 03/10/25, Michael O’Boyle: Citi’s Banamex Gets Competing Bid From Mexican Mining Tycoon.
Kapital Targets IPO Within Three Years After Reaching Unicorn Status
Kapital, which reached unicorn status last month with a valuation above US$1 bn, is preparing an IPO within three years as part of its next growth phase. CEO René Saúl said the firm is weighing a dual listing in Mexico and the U.S. to boost visibility and attract global capital. Kapital’s rise reflects both aggressive expansion and opportunistic acquisitions, most recently of Intercam’s brokerage, asset management, and banking units after the latter was sanctioned by U.S. authorities for alleged money-laundering operations. By consolidating assets from weakened competitors, Kapital is positioning itself at the center of Mexico’s evolving financial sector, where fintech-led challengers are gaining momentum while regulatory pressure reshapes the traditional landscape. An IPO would not only provide growth capital but also test investor appetite for Mexican fintechs at a time when local players are increasingly looking to scale beyond domestic borders. Other Mexican fintechs (Clip, Rappi) have often talked about IPO plans without obvious progress, so the key will be Kapital’s numbers over the next couple of years.
El Economista, 02/10/25, Reuters: Kapital plans IPO within the next three years Other sources: Bloomberg Linea, Reforma.
Ruling Out Merger or Acquisition, Vector Transfers Assets to Finamex
Brokerage Vector, one of three Mexican financial institutions flagged by the U.S. Treasury in June for alleged money-laundering links, announced the transfer of most of its client portfolios and assets to Finamex in an orderly process that it underscored was neither a merger nor acquisition. The transaction, pending regulatory approval, highlights how U.S. scrutiny has accelerated restructuring in Mexico’s financial sector: CIBanco and Intercam, also targeted, have already sold off or given away most of their operations, while Finamex emerges stronger with an expanded footprint. For Vector, the move reflects both reputational and regulatory pressures, forcing a retreat despite decades of market presence. The broader implication is a consolidation wave in Mexican brokerage, as compliance costs and international oversight reshape the competitive dynamics of the industry.
El Economista, 01/10/25, Edgar Juárez: Vector announces asset transfer to Finamex; not a merger or acquisition, it clarifies
PayPal Expands in Mexico With Launch of Deferred Payments
PayPal announced the launch of Deferred Payments in Mexico starting October, a financing tool that allows consumers to split purchases into 3 to 18 monthly instalments, even at merchants that do not traditionally offer instalment options. The feature is automatically integrated into PayPal’s checkout system, giving access across more than 200,000 businesses without additional steps for merchants. According to PayPal’s study on digital payments, 30% of online shoppers buy more when given multiple payment options, and 19% specifically cite deferred payments as a driver. For merchants, instalments increase average ticket size, reduce cart abandonment, and improve liquidity, with 39% of Mexican SMEs already offering such options. PayPal’s launch reflects growing demand for flexible financing and strengthens its positioning in Mexico’s e-commerce sector, where instalment plans are increasingly a competitive requirement.
TYN Magazine, 29/09/25, Staff: PayPal expands its portfolio in Mexico with new product.
Banco Azteca Sees Full Digitalization of Mexican Finance Unlikely
Banco Azteca argued that Mexico’s financial system is unlikely to become fully digital in the near term due to the persistence of cash, particularly among lower-income populations. CEO Tonatiuh Rodríguez said the bank is pursuing a “phygital” model that blends physical branches with digital services, emphasizing that converting cash to digital—and vice versa—still requires a physical infrastructure. Banco Azteca serves 23.4 mn clients, with 60% of transactions already digital, and operates 2,000 branches across more than 800 municipalities, including 178 where it is the only private bank. The institution stressed that investing in high-quality technology for underserved sectors remains a priority, while also learning from fintechs on user experience and engagement with younger generations.
El Economista, 30/09/25, Sebastián Estrada: Banco Azteca sees full digitalization as unlikely.
AI in Financial Areas: A Pending Opportunity for Mexican Companies
A study by fintech Payana and PwC highlights the untapped potential of artificial intelligence in Mexico’s financial operations, where most firms still rely on manual processes that slow growth. While Latin America is projected to see over 60% of companies adopt AI by 2027—reporting up to 30% cost savings and better operational control—Mexican firms lag behind, with 31% not using digital finance tools at all. Payana, which recently acquired Mexican startup Higo, aims to accelerate adoption by offering automation that reduces errors, fraud, and administrative costs for over 1,500 client companies in sectors such as logistics, retail, and manufacturing. Analysts warn that without stronger integration, data quality, and staff training, many finance teams risk falling short of becoming true strategic partners. The trend reflects both a major efficiency opportunity and the challenge of driving digital transformation in Mexico’s corporate landscape.
El Economista, 02/10/25, Sebastián Estrada: AI in financial areas: pending opportunity for Mexican companies.
Additional reading…
- Mexico could save up to US$1 bn in remittances commission by leveraging technology.
- Grupalia raises $4.8M seed round.
- Digital Payments in Mexico: A new era of trust.
- Klar to enter Business loans, offering accounts, credit and even cashback to SMEs.
- Revolut advisor warns Mexican banks: ‘The party is over’.
- CAME Liquidation Will Absorb Most of Sofipo Protection Fund, Warns Moody’s.
- Ualá launches “Reserva a Plazo” in Mexico.
- ‘MTU’ implemented in Mexico: What does it mean for fintechs?
- Openbank reaches 110,000 users in Mexico.
LatAm FinTech News
Nubank Seeks U.S. Banking License Amid Expansion Risks and Regional Focus
Nubank filed for a U.S. national banking license as part of its global ambitions. The license would allow Nubank to offer deposits, credit, loans, and digital asset custody in the U.S., but analysts warned the move could divert resources from its core markets in Brazil, Mexico, and Colombia, where it already serves 122.7 million customers. Citi cautioned that navigating regulatory and capital demands may strain management focus, even as it reaffirmed a buy rating with a US$18 price target. Experts note the U.S. entry could strengthen Nubank’s Latin American base by targeting immigrant clients and facilitating cross-border flows, while also boosting its reputation in a crowded fintech ecosystem dominated by players like Stripe.
Bloomberg Línea, 30/09/25, Daniel Salazar Castellanos: Nubank projects itself as a U.S. bank with the challenge of not losing focus in Latin America. Other Sources: El Economista.
Remitee raises $20m to expand embedded remittances.
The round, led by Krealo, funds LatAm scaling and US/Europe reach. Remitee embeds cross-border payments into banks, retailers and fintechs, enabling transfers, bill pay, top-ups and prepaid cards inside existing platforms. Its hybrid treasury supports instant fiat and stablecoin settlement, with an AI engine for routing and compliance. Over 40 institutions use Remitee. In 2024 it quadrupled volume and reached profitability; it targets 10x enterprise customers by 2027.
Fintech Global, 03/10/25: Remitee secures $20m to power embedded remittances.
Why Nubank’s Boom in Brazil Has Not Reached Colombia
Despite reaching 3.4 mn customers and more than US$2.1 bn in deposits, Nubank has struggled to replicate in Colombia the explosive growth it achieved in Brazil, where it ranks as the third-largest bank by clients with over 100 mn users. Industry leaders point to Colombia’s usury cap of 25.01% on consumer credit, which limits profitability for neobanks that rely heavily on lending and credit cards. This regulatory ceiling, combined with the dominance of established players like Bancolombia and Davivienda, makes market penetration difficult. Studies by ANIF and Colombia Fintech warn the cap restricts credit access and pushes borrowers toward informal lenders who charge rates above 380% annually, highlighting both systemic barriers and consumer risks. While Nu Colombia has grown steadily—ranking sixth in savings accounts with COP$4.85 bn—its scale remains modest compared to incumbents. Executives argue, however, that growth normalized by population is faster than in Brazil or Mexico, showing long-term potential.
Bloomberg Línea, 01/10/25, María C. Suárez and Daniel Guerrero: Why Nubank has not replicated in Colombia the boom it achieved in Brazil
Additional reading…
- RappiPay announces improved digital offerings in-app including new cashback offer.
- Mercado Pago seeks to raise capital by borrowing up to US$60 mn.
- Toku goes live in Latin America with PedidosYa, marking strategic global expansion.
- Argentina bans official dollar sales through e-wallets.
- Kushki’s Chile Manager leaves post after 9 months.
- Creditas, a Brazilian fintech, plans to raise US$100 mn to boost its growth.
- Revolut seeks to surpass Nubank.
Global FinTech News
Swift to Launch Blockchain to Counter Stablecoin Competition
Global payments network Swift announced it will develop its own blockchain to facilitate cross-border transactions, aiming to compete with the rapidly growing US$300 bn stablecoin industry. Backed by banks including Citigroup, Bank of America, and NatWest, the blockchain will serve as a shared digital ledger for tokenised products such as stablecoins, using smart contracts to validate and enforce transactions. The move comes as stablecoin issuers like Tether and Circle gain traction by enabling direct, low-cost transfers without intermediaries, and as new U.S. legislation encourages banks to explore launching their own tokens. European banks are also advancing a euro-denominated stablecoin by 2026, intensifying pressure on traditional payment rails. Swift, which connects over 11,500 financial institutions worldwide, said its blockchain will enable “instant, always-on” cross-border payments at scale and will prototype the system with Consensys, led by ethereum co-founder Joseph Lubin.
Financial Times, 29/09/25, Nikou Asgari: Swift to launch blockchain in response to rise of stablecoins.
OpenAI Partners With Stripe to Launch Instant Checkout in ChatGPT
OpenAI introduced Instant Checkout, a new feature inside ChatGPT that enables users to purchase products directly within the chat window, marking a step toward “agentic commerce.” Initially rolling out in the U.S. across free, Plus, and Pro versions, the system integrates with Etsy and Shopify merchants, with brands like Glossier, SKIMS, and Vuori among early participants. The functionality is powered by the Agentic Commerce Protocol, co-developed with Stripe, which allows AI systems to securely pass order and payment details to merchants while leaving fulfillment and customer relationships intact. OpenAI emphasized that product rankings remain organic and unsponsored, while Stripe highlighted its goal of building the “economic infrastructure for AI.”
Fintech Magazine, 30/09/25, Natalia Elliot: OpenAI partners with Stripe to develop agentic payment
Wealthfront Files for IPO After 17 Years, Reports Strong Profitability
Wealthfront, the Palo Alto–based robo-advisor founded in 2008, has filed for an IPO after achieving profitability and significant growth. The company reported net income of US$123 mn on revenues of US$339 mn in the year ended July 2025, managing US$88 bn in client assets across 1.3 mn customers with only 330 employees. Originally launched as KaChing before pivoting to automated portfolios, Wealthfront has grown rapidly since adding high-yield cash management accounts in 2019, which now hold US$47 bn, surpassing its investment accounts at US$42 bn. The firm, last valued at US$2 bn in late 2024, plans to expand into mortgages, offering rates 0.5% below the U.S. average in five states. CEO David Fortunato emphasized Wealthfront’s low-cost model, charging just 0.25% on investment accounts, and noted the company is increasing marketing spend ahead of its public debut.
Forbes, 29/09/25, Jeff Kauflin: After 17 years, fintech Wealthfront files for IPO.
Viamericas has raised $115 million to expand its global remittance network
The company operates over 300,000 payout locations in 95 countries, with direct deposit into more than 2,700 banks and 107 mobile wallets worldwide. The round was led by Old National Bank, with contributions from Bank of Oklahoma, Axos Bank, and U.S. Bank, and advised by FT Partners. The funding will accelerate digital platform enhancements and network growth, leveraging Viamericas’ hybrid model of agent networks plus digital tools. Co-founders Joseph Argilagos and Paul Dwyer emphasize that this investment strengthens partnerships with banks and enables faster, safer remittance services that support families globally.
Company press release, 30/09/25: Viamericas Raises $113.6 Million.
Additional reading…
- How Fintechs are Transforming Remittances in Emerging Markets.
- AI fraud platform Feedzai hits $2bn valuation.
- Better Tomorrow Ventures closes $140M, remains bullish on fintech.
- First Merchants inks $241m merger deal with First Savings.
- Teylor secures €150m boost from Fasanara Capital.
- Visa Direct Taps Stablecoins to Unlock Faster Funding for Businesses.
- Stripe introduces Open Issuance from Bridge: A new platform to launch your own stablecoin.
Download PDF: MI-MexicoFintechChatter-100625