Miranda’s Weekly Mex FinTech Monitor

Miranda’s Weekly Mex FinTech Monitor

 November 21, 2023  

 

Mexico FinTech News

Covalto’s SPAC IPO is cancelled

Special purpose acquisition company (SPAC) LIV Capital Acquisition II mutually agreed with the Mexican FinTech Covalto to terminate their merger and announced it would redeem its outstanding class A ordinary shares, essentially liquidating the company. The move was made after the SPAC failed to consummate a business combination within 24 months of its IPO (February 10, 2024). Neither company has yet to publicly comment on the move beyond the press release which was released via wire on Monday.

 

Ualá raises the yield on its account to 15% to compete with other FinTechs

Ualá has joined the competition to offer higher interest rates on its accounts, increasing its yield on demand deposits to 15% annually. This move follows Nu México, which recently raised its annual yield to 15%. Ualá emphasizes that these returns apply to all account holders. According to the company, Ualá aims to provide users with a comprehensive financial ecosystem, including payments, debit cards, investments with a 15% return, and credit solutions. In addition to Nu México, Stori also increased its return on its savings account to 15%.

 

Uber will add Mercado Pago to its platform 

Uber announced a new alliance with Mercado Pago in Mexico to increase transactions on its platform and its user base. The partnership will diversify its payment options in partnership with third parties and aims to also increase its profitability.  This is the fourth country in Latin America where Uber users will be able to make payments via Mercado Pago.

 

Other news

Bloomberg Línea, 11/15/23, Carolina Millan: Batalla fintech en México se recrudece con aumento de rendimientos

El Economista, 11/15/2023, Sebastián Estrada: Bitso nombra a Felipe Vallejo como su nuevo director en México

Latam Fintech Hub, 11/16/2023, Valentina Moreno: Conoce los Soonicorns más destacados de México este 2023

 

LatAm FinTech News

Itaú takes a 40% Stake in Handy as Part of Digital Inclusion Strategy in Uruguay

Itaú, the international bank, has acquired a 40% stake in Uruguayan PayTech company Handy, as part of its strategy to promote digital inclusion in Uruguay. The collaboration seeks to expand banking opportunities for businesses and merchants in the country. With electronic transactions already constituting 48% of Uruguay’s retail payments, totaling $16.8 million annually, the integration between Itaú and Handy aims to further increase these figures. Handy, which has rapidly become the primary payment solution for over 20,000 businesses in Uruguay in less than two years, plans to leverage the partnership to offer an extended range of financial products and solutions. Handy’s innovative payment solutions cater to merchants and independent workers, supporting various cards and payment methods both in physical and digital channels.

 

Beetransfer and Bitso join forces to support freelancers in LATAM

Beetransfer, a FinTech startup with over USD$1.3 million in first-year sales, has partnered with Bitso to expand in Latin America. This collaboration allows freelancers, nomads, and companies to receive instant payments from anywhere in the world. The alliance will seek to acquire 17,000 new users in the region, starting in Argentina, offering benefits like local bank account payments. Beetransfer aims to streamline processes and solidify its position as a FinTech leader in Latin America.

 

Other news

LatamList, 11/15/2023, Felipe Osorno-Giraldo: Fintech WiPay expands operation to Colombia

 

Global FinTech News 

Commerzbank becomes first German bank to receive crypto custody license

Commerzbank has obtained a new license to establish digital asset services, with a specific focus on crypto assets. Commerzbank, serving the German Mittelstand and a large number of corporate and individual clients, aims to build a comprehensive suite of financial services in the digital asset space.

Fintech Futures, 11/16/2023, Shruti Khairnar: Commerzbank becomes first German bank to receive crypto custody licence

 

Fnality raises £77.7m in Goldman Sachs and BNP Paribas-led Series B

Fnality, a FinTech focusing on digital cash systems for financial markets, raised £77.5 million in a Series B. Repeat investors include BNY Mellon, UBS, Nasdaq Ventures, and State Street, while new investors include DTCC, Euroclear, Nomura, and WisdomTree. The company, previously known as the utility settlement coin (USC) project, plans to use the funds to launch its Fnality Payment System (FnPS) operations, pending regulatory approval. FnPS utilizes central bank digital currency (CBDC) assets for near-instant settlement in wholesale payments. The Series B funding brings Fnality’s total capital raised to £132.7 million since its inception in 2019.

Other news

Noticas NEO, 11/13/2023, Gaby Garcia: Pagos digitales representan el 60% del PIB mundial

Fintech Futures, 11/17/2023, Tyler Pathe: Lack of funding forces US credit card fintech Ness to close down

The Block, 11/14/2023, MK Manoylov: Blockchain.com raises $110 million in Series E funding