As part of its international expansion plan, the Australian unicorn focused on cross-border payments Airwallexvalued at 5.6 billion dollars, announced its full entry into the Mexican market by completing the acquisition of the Electronic Payment Funds Institution (IFPE) Mexpago.
Since October 2023, the Singapore-based firm began efforts to acquire Mexpago, an entity that was authorized under the Law to Regulate Financial Technology Institutions, known as Fintech Lawon September 30, 2021.
According to Luis Castillejos Ordazfounder of Mexpago and who will have the role of Country Manager of Airwallex in the country, Mexico is a key player in the global economy as it is the link between North America and South America, which makes it an epicenter for payments cross-border.
“We are proud to join forces with Airwallex to enable secure and seamless cross-border transactions for businesses around the world. MexPago’s national capabilities combined with Airwallex’s global reach will deliver even greater value to our shared customers. Together we will open borderless opportunities for companies here in Latin America and around the world,” declared Castillejos Ordaz.
According to Airwallex’s analysis of Mexico, there is a high demand for digital financial tools in the country by small and medium-sized businesses (SMEs), which also speaks to a growing need for efficient cross-border payment solutions.
In this scenario, it is estimated that 85% of the SMEs in Mexico They plan to expand their international financial activities, while cross-border operations already represent 22% of electronic commerce activity in the country.
Likewise, there is significant growth in cross-border payments in the region, with a compound annual growth of 44%, which highlights the importance of Mexico as a strategic partner of the United States.
IFPES are revitalized
Despite the limitations of the IFPE figure, this type of figure is still attractive to achieve specific purposes such as allowing digital purchases, payments and shipments, as well as direct debits for services.
A few days ago, this medium reported that the pharmaceutical chain Savings Pharmacies would begin to offer, within its loyalty scheme, IFPE services, after having acquired the fintech Tu Dinero Digital.
In addition, other brands like OxxoWalmart, Elektra, Cabify, Uber or Mercado Pago already have an IFPE license, which they have incorporated, or will soon incorporate, into their services.
Expansion to Latin America
At the same time as its arrival in Mexico, Airwallex reported that it also obtained a payment institution license from the Central Bank of Brazil, to be able to offer its services to Brazilian firms focused on local accounts, card issuance and payment acquisition. as well as participation in the open banking ecosystem of that country.
“With licenses in Brazil and Mexico, we can help Latin American companies expand and prosper across borders, while helping companies around the world operate more seamlessly in these two dynamic economic markets. ”commented Ravi Adusumilli, president of Airwallex for the Americas.
In addition, Airwallex will launch additional services in Brazil for global customers this year, such as access to a bank account in Brazilian reals with a unique identification number and payment and collection methods such as PIX and Boleto.
With the arrival in Brazil and Mexico, the unicorn founded by Jack Zhang adds two countries to the list of nations where it has a presence, including Australia, Canada, Malaysia, Hong Kong, New Zealand, Singapore, mainland China, the United Kingdom, United States and the European single market.
