Mexico is experiencing a fintech transformation that promises to reshape the country’s financial ecosystem. Once viewed as a playground for bold startups and rapid growth, the fintech sector in Mexico is now evolving into a mature, strategically driven industry focused on scale, innovation, and financial inclusion.
2025 stands out as a pivotal year in this journey. Fintech startups are consolidating, regulations are maturing, and digital finance is reaching the nation’s most underserved communities. With over 1,000 fintech companies now operating in Mexico—more than 800 of them founded by nationals—the country is closing the innovation gap with Brazil and asserting itself as a regional fintech powerhouse.
Financial Inclusion: Mexico’s Greatest Challenge—and Opportunity
Despite being Latin America’s second-largest economy, Mexico remains one of the region’s most financially underserved nations. Fewer than 70% of adults have a bank account, and more than half of small and medium-sized enterprises (SMEs) have never applied for a loan. This financial exclusion not only hinders economic growth but deepens social inequality.
This gap, however, has become fertile ground for fintech innovation. Using digital tools, AI, and mobile-first platforms, fintech companies are reaching communities and entrepreneurs long ignored by traditional banks. Companies like NuBank and Spin by Oxxo are revolutionizing access, with tens of millions of users now part of the formal financial system for the first time.
Foreign Investment and International Confidence
Mexico’s fintech ecosystem is also drawing significant attention from international players. More than 300 foreign fintechs, hailing from 22 countries, now operate in Mexico, attracted by its strategic location, underserved market, and rapidly improving regulatory environment.
This foreign interest is backed by hard numbers. In 2024, fintech represented 74% of all venture capital in the country, with $865 million invested across 50 deals. Mexico now captures 60% of the VC investment Brazil does—a dramatic jump from just 34% in 2020.
From Startups to Scaleups
The era of wild growth is giving way to a new phase: scale-up mode. The number of new startups is stabilizing, but revenue is growing fast. Mexican-founded fintechs reported a 31% increase in income in 2024 alone. The focus is now on building sustainable business models, increasing operational efficiency, and generating profits.
The trend reflects a global reality: investors are prioritizing profitability over aggressive expansion. As a result, Mexican fintechs are refining their offerings and aiming for long-term viability, not just rapid growth.
Strategic Use of Artificial Intelligence
Artificial intelligence is powering much of Mexico’s fintech innovation. From fraud detection to personalized user experiences and alternative credit scoring, AI is embedded in 68% of fintechs’ operations.
Its impact is most visible in digital banking, wealth management, and infrastructure services. Notably, AI is helping extend services to people with limited credit histories or just one financial product, offering a lifeline to Mexico’s underbanked majority.
Reinventing Lending for SMEs
Small and medium-sized businesses are vital to Mexico’s economy, contributing around 40% of GDP and employing 70% of the workforce. Yet, access to financing remains limited due to high interest rates and complex lending processes.
Fintechs are stepping into this void, using alternative data and streamlined digital platforms to offer tailored credit products. New lending models, such as warehouse financing and peer-to-peer lending, are enabling these firms to fund SME growth while sidestepping traditional barriers.
Navigating the Regulatory Maze
Mexico was one of the first Latin American countries to enact a dedicated fintech law, and its regulatory ecosystem is among the most comprehensive in the region. However, compliance is complex and obtaining licenses can be costly and time-consuming.
In response, fintechs have begun shifting strategies. Many are now pursuing broader licenses, like those granted to SOFIPOs (Popular Financial Companies) or full banking charters. These licenses enable them to offer deposit-taking and expand their services. Recent acquisitions, such as Ualá’s purchase of Banco ABC Capital and Kapital’s acquisition of Banco Autofin, reflect this shift.
The Licensing Pivot
Authorizations under the Fintech Law dropped from 30 in 2023 to just nine in 2024. This decline was driven by low profitability in certain business models—especially IFPEs (Electronic Payment Funds Institutions)—and the heavy burden of regulatory compliance.
SOFIPO licenses gained popularity for allowing deposit-taking, but they come with their own limitations. Increasingly, fintechs are opting for full banking licenses to broaden their reach and reduce reliance on external funding.
The Digital Banking Wave
Digital-only banks are on the rise, with both fintechs and traditional institutions entering the space. Santander and Banorte are set to launch digital banks in 2025, signaling a new phase of competition in an already dynamic market.
These banks aim to combine traditional reliability with fintech agility, offering digital services that meet the needs of both urban and rural clients. It’s a trend that mirrors global shifts in consumer expectations around convenience and access.
Cryptocurrency and Cross-Border Payments
Mexico’s role as a remittance hub—one of the largest recipients globally—makes it a prime candidate for crypto disruption. Fintechs are increasingly offering crypto-based remittance services, with over 60% enabling stablecoin use and 50% facilitating cross-border trade.
These innovations reduce transaction costs and settlement times, offering greater flexibility for migrants and businesses alike.
Open Finance and Collaborative Ecosystems
Mexico leads Latin America in fintech collaboration. Nearly three-quarters of Mexican fintechs are working with traditional banks or are open to doing so. This synergy is reshaping the ecosystem, promoting service integration and broader access.
The push toward open finance is a central theme. While regulatory delays pose challenges, efforts are underway to advance data-sharing frameworks and unlock new forms of service delivery.
Capital Markets and New Financing Pathways
With non-bank financial institutions (NBFIs) suffering collapses in recent years, investor confidence was shaken. However, fintechs have since adapted, turning to capital markets and warehouse financing to fund growth.
Recent reforms to Mexico’s Securities Markets Law simplify the issuance of debt instruments and aim to democratize access to capital. These changes could open the door for fintech securitizations and broader institutional investment.
Mergers, Acquisitions and the Road to Profitability
As funding environments tighten, consolidation is accelerating. M&A deals—like Klar’s acquisition of Tribal and Airwallex’s purchase of Mexpago—signal a new phase of strategic alignment in the sector.
These moves are not only about survival—they are about combining strengths to build comprehensive financial solutions. Partnerships, like the one between Rappi and Banorte, or NuBank and Oxxo, reflect this trend.
The Road Ahead: Challenges and Promise
Mexico’s fintech sector has entered a defining phase. The focus is no longer just on disrupting banks—it’s about becoming banks, forging alliances, and driving systemic change. Still, challenges persist. Regulatory compliance is burdensome, and profitability remains elusive for many.
Yet the momentum is undeniable. If 2025 delivers on current trends—greater access, smarter regulation, and deepening collaboration—Mexico could become not just a regional leader, but a global reference for fintech-led inclusion.
Photo of the portrait: Depositphotos
