Finovate Global Mexico: Payments Partnerships and International Acquisitions

This week’s version of Finovate International focuses on latest fintech headlines from Mexico, which boasts the second largest economic system in Latin America.

Belvo and JP Morgan Accomplice to Improve Recurring Funds in Mexico

A strategic collaboration between Latin American open finance platform Belvo and J.P. Morgan Funds goals to automate and streamline the administration of recurring funds by way of direct debit. The partnership will allow companies in a number of sectors to deploy direct debit rapidly and securely, enhancing the shopper expertise and boosting engagement.

“This alliance with J.P. Morgan Funds is a milestone for Belvo and the monetary ecosystem in Mexico,” Federica Gregorini, Common Supervisor of Belvo in Mexico, mentioned. “Direct debit presents a contemporary and environment friendly resolution that not solely improves corporations’ operational processes but additionally makes life simpler for customers. With this collaboration, we’re taking recurring cost automation to the following stage, making it extra accessible for all sorts of companies.”

Now a member of J.P. Morgan Funds Accomplice Community, Belvo will give corporations in industries equivalent to lending, insurance coverage, utilities, subscription companies, and extra the power to automate their recurring collections. By leveraging direct debit, these corporations will scale back errors, guarantee well timed funds, and enhance comfort for patrons who will not should make guide funds.

Based in 2019 and headquartered in Mexico Metropolis, Belvo is a number one open finance and knowledge funds platform. With companions together with BBVA, Citibanamex, and Finovate alum Nubank, Belvo first launched its direct debit recurring funds resolution in Colombia and Mexico within the fall of 2023. This week’s strategic collaboration with J.P. Morgan Funds will carry this know-how to extra companies all through Mexico.

“We’re happy to work with Belvo to supply our shoppers within the nation entry to a best-in-class direct debit resolution, offering larger transaction success charges, new options equivalent to partial debit funds, and extra environment friendly settlements,” Francisco Molina Viamonte, Head of Mexico for J.P. Morgan Funds mentioned.

TransUnion Acquires Trans Union de Mexico from Mexico’s Largest Credit score Bureau

Worldwide data and insights firm TransUnion has signed a definitive settlement to accumulate majority possession of Trans Union de Mexico, the buyer credit score enterprise of Mexico’s largest credit score bureau, Buró de Crédito.

“Our enlargement in Mexico continues our dedication to creating belief attainable in world commerce,” TransUnion President and CEO Chris Cartwright mentioned. “Credit score bureaus are a catalyst for monetary inclusion, and we’re excited for the chance to carry the advantages of our state-of-the-art know-how, revolutionary options, and trade experience to Mexican shoppers and companies.”

TransUnion at present owns roughly 26% of Trans Union de Mexico. Money consideration for the transaction, through which TransUnion will purchase a further 68% possession stake, is $560 million (MXN 11.5 billion), with an enterprise worth of $818 million (MXN 16.8 billion). Buró de Crédito’s industrial credit score enterprise shouldn’t be part of this transaction.

“We anticipate that our deliberate acquisition of Buró de Crédito’s client credit score enterprise will strengthen our management place in Latin America and can make TransUnion the biggest credit score bureau in Spanish-speaking Latin America,” Regional President of TransUnion Latin America Carlos Valencia mentioned. “We see substantial alternative to introduce world merchandise like trended and various credit score knowledge, fraud mitigation options, and client engagement instruments. We additionally plan to broaden past conventional monetary companies into adjacencies equivalent to FinTech and insurance coverage.”

TransUnion made its Finovate debut in 2016 at FinovateFall. The corporate returned to the Finovate stage final yr for FinovateSpring 2024 to display its Enhanced BreachIQ resolution, which gives fashionable, gamified client id safety. A part of TransUnion’s TruEmpower suite of options, Enhanced BreachIQ builds an Id Security Rating based mostly on the person’s particular person and distinctive knowledge breach historical past. It additionally gives Breach Danger Scores that measure the severity of incidents through which their knowledge was uncovered, and a Personalised Motion Plan of sensible threat mitigation steps.

Based in 1968, TransUnion is headquartered in Chicago. The corporate trades on the New York Inventory Change below the ticker TRU and has a market capitalization of $18.4 billion.

Airwallex Acquires MexPago as A part of Latin American Growth

Talking of acquisitions in Mexican fintech and monetary companies, world monetary platform Airwallex has finalized its acquisition of Mexico-based cost service supplier MexPago, a licensed Establishment of Digital Cost Funds (IFPE). The acquisition, together with latest information that Airwallex has secured a cost establishment license from Banco Central do Brasil, will allow the corporate to attach its worldwide monetary infrastructure with Brazil and Mexico, supporting native companies.

“Mexico performs a pivotal function within the world economic system, serving as a key hyperlink between North and South America and a vital hub for cross-border funds,” MexPago CEO and founder Luis Castillejos Ordaz mentioned. “We’re proud to hitch forces with Airwallex to allow seamless and safe cross-border transactions for companies worldwide. MexPago’s home capabilities, mixed with Airwallex’s world attain will ship even higher worth to our shared clients. Collectively, we’ll unlock borderless alternatives for companies right here in Latin America and world wide.”

Based in 2014, MexPago is headquartered in Huixquilucan, a part of Higher Mexico Metropolis. Publish-acquisition, Castillejos will function Nation Supervisor for Airwallex, Mexico, the place he’ll handle operations and assist Airwallex’s clients efficiently navigate the Mexican market.

Right here is our have a look at fintech innovation world wide.

Asia-Pacific

UnionDigitalBank, the digital banking arm of Union Financial institution of the Philippines, partnered with fintech lending platform JuanHand.

Japanese worldwide cost supplier JCB solid a strategic collaboration with DOKO to spice up JCB card acceptance within the U.Ok.

Backbase introduced that its consumer, Vietnam-based An Binh Business Joint Inventory Financial institution (ABBANK) has launched ABBANK Enterprise, a brand new digital banking platform.

Sub-Saharan Africa

Central and Japanese Europe

Czech cybersecurity agency for monetary establishments Wultra raised €3 million in funding.

Ebury introduced its acquisition of Lithuanian B2B cross-border funds options supplier ArcaPay.

Lithuania required monetary establishments within the nation to dam cost card transactions from unregulated operators.

Center East and Northern Africa

Egyptian fintech Raseedi acquired microfinance lender Kashat.

MENA-based fintech startup Zywa, which presents banking options for Gen Z clients, raised $3 million in funding.

Saudi Arabian funds companies supplier HyperPay secured a license from the Saudi Central Financial institution (SAMA) to help the event of the monetary companies ecosystem within the kingdom.

Central and Southern Asia

Amazon acquired India-based Purchase Now, Pay Later agency Axio for $150 million.

Pakistan-based industrial financial institution Financial institution Alfalah acquired a 9.9% fairness stake in Jingle Pay.

Indian fairness administration platform Hissa launched a brand new fund to assist employees at growth-stage startups convert their vested inventory choices into money.