Airwallex Enters the Mexican Market with the Acquisition of Mexpago

Airwallex, the Australian fintech company focused on the global payments segment and valued at close to US$ 5.5 billion, is one step away from landing in Mexico after signing a definitive agreement to acquire the Electronic Payment Funds Institution (IFPE) MexPago, which obtained its license to operate under the Law to Regulate Financial Technology Institutions, or Fintech Law, on September 30, 2021.

The firm’s communications area told this media outlet that, with the acquisition of MexPago, its global infrastructure will be more extensive, as it will be connected to the payment network of Mexico, a country that represents its entry into the Latin American region and that generates ample potential for business growth due to its proximity, both geographically and commercially, to the United States.

“The combination of MexPago’s capabilities in Mexico and Airwallex’s global financial infrastructure will bring powerful opportunities, both for companies in Mexico operating globally or expanding into new markets, as well as for companies around the world operating in Mexico,” the company noted.

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According to the firm, the IFPE license is sufficient to offer all the services Airwallex offers globally

The firm, founded by Jack Zhang, explained that once the National Banking and Securities Commission (CNBV) approves the purchase, it will be able to deploy IFPE’s services, such as the administration of its clients’ resources, electronic payments and transfers, access to electronic cards and, in addition, “improved access to local methods such as the Interbank Electronic Payment System” or deposits in retail stores, such as Oxxo.

However, for Airwallex this would be a part of it, as it also plans to offer its global services, such as merchant accounts, central API and integrated finance. Regarding the first point, the firm detailed that its clients would be able to open an online account and access solutions such as receiving payments, treasury management, expense optimization and instant international transfers.

Likewise, regarding its central API, it explained that this tool focuses on accepting payments and managing 100 types of currencies through programming, as well as issuing multi-currency cards.

In the area of integrated finance, firms from different markets will be able to generate new lines of revenue by being able to offer products linked to the Airwallex infrastructure. “The products build on our global infrastructure by presenting Airwallex as a complementary service to their customers, creating Airwallex-powered functions or fully tagging our functionality through our open API.”

According to the firm, the IFPE license is sufficient to offer all the services Airwallex offers globally.

“With the acquisition of MexPago, we are on our way to becoming the number one financial and payments platform for modern businesses to go global,” detailed Ravi Adusumilli, executive managing director for the Americas at Airwallex.

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(Featured image by yeonhwas510 via Pixabay)

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First published in America economia. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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