Global payments firm Nium, headquartered in Singapore and San Francisco, will seek to acquire a license to operate under the terms of the Law to Regulate Financial Technology Institutions, also known as the Fintech Law.
The platform started operations in Mexico in 2020 within the instant international transactions market for the business segment, for which the technology company uses Application Programming Interfaces (APIs).
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According to its regional vice-president, Christina Hutchinson, Nium will seek to complement its offer with a license, which so far is not required for operations.
“In Mexico, we see a lot of this need to make international payments, a bit driven by the growth of freelancers, of which we expect a very large growth of employees, of developers who are Mexican and work for other markets remotely,” said Hutchinson.
The platform is already operating in a regulated manner in more than 35 countries, where it has licenses for money transfers, remittances, storage, and issuance of electronic money. It also offers the possibility of carrying out transactions with more than 100 currencies, in more than 190 countries.
If regulated under the framework of the Fintech Law, Nium would join a universe of 67 authorized entities, of which 45 are Electronic Payment Fund Institutions, with firms specialized in the payments segment for the business sector.
In addition, in the regulated segment there are another 22 entities authorized as Collective Funding Institutions.
“We are in the process of analyzing when and how we will have to see the licensing process and other requirements, we start with payments and we will add the license, once the opportunities in Mexico are growing,” said Hutchinson.
According to what the directive informed, since their arrival in the country, they have observed opportunities to collaborate with other entities in the financial sector to facilitate the adoption of tools for international transactions, especially in segments such as banking, as they have identified in Brazil, where they already collaborate with different banks.
“In Brazil, we observed that the central bank’s payment system, Pix, is driving the adoption and impact of instant payments. In Mexico, with the banks, we identified that they have made progress in international instant payments because there is currently a need to have real-time transactions.”
Nium – an Asian Unicorn
In 2022, after a $200 million investment round, the payments company Nium acquired Unicorn status, meaning they are worth more than US$1 billion.
As published by the platform, they have a valuation of $2 billion, and in 2022 they received revenues of more than 100 million dollars.
Nium started operations in 2014 in Singapore, as a fintech for remittances for both the corporate segment and end users.
The firm has received investment from the Singapore government through Temasek Holdings, in addition to payment processor Visa and venture capital firm Vertex Ventures.
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First published in EL ECONOMISTA. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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