The Fintech Market Continued Growing in Mexico, Report Says
The fintech market in Mexico has increased recently, with 184 new companies founded in 2022 alone. In the study published by Finnovista, the company also mentioned the challenges that fintech companies must face in 2023. The main one is to scale operations and internationalize, followed by access to financing and launching a product or service.
The financial technology industry, also known as Fintech, enjoyed good health in Mexico in recent months, to the point that its growth reached 26% in 2022. This is one of the largest year-on-year increases that the sector has registered in recent years, as it doubled the growth achieved between 2020 and 2021.
As part of that expansion, 184 companies were founded in the Mexican Fintech ecosystem last year alone, according to a report presented by Finnovista, an innovation and startup-building company.
Of those companies, the ones offering lending, payments, and remittance services continue to be the main segments of that sector, as they make up 60% of the total industry.
Regarding remittances, the use of cryptocurrencies has become an alternative that Mexicans see with better eyes. According to the blockchain analysis and security firm, Chainalysis, sending remittances to Mexico with Bitcoin (BTC) grew 400% in one year, a fact reported by CriptoNoticias.
This is due to the fact that in Mexico there is a high percentage of families, of socioeconomically low class, who constantly receive remittances from their relatives abroad.
One of the cryptocurrency-related companies featured in the Finnovista report is the Mexican Bitcoin and cryptocurrency exchange Bitso. The company has stood out for offering remittance services with digital assets such as stablecoins.
Additionally, the report highlights that smart contracts and blockchains have increased their use by 5% and 9%, respectively, within Fintech companies in Mexico.
Discover the world’s most interesting financial news with the mobile app Born2Invest. The app provides its readers access to the latest news in global business, stock market, finance news, and also trending topics like bitcoin, cryptocurrency, and biotech.
Between industry challenges and criticisms of regulations
In the study, Finnovista also mentioned the challenges that fintech companies must face in 2023. The main one is to scale operations and internationalize, followed by access to financing and launching a product or service.
Finally, those consulted mentioned cybersecurity and getting and implementing adequate infrastructure. “Mexico continues to be a growing ecosystem with a strong appetite for capital,” the study states.
Regulations are also a stumbling block for alternative finance, such as bitcoin and cryptocurrencies. For Eloísa Cadenas, a consultant specializing in the development of products with crypto assets and blockchain, the legislation is not adjusted to the current situation, it has fallen short and a reform involving bitcoin is necessary.
For Vanessa Solís Caballero, an accountant and bitcoin enthusiast, Mexican regulators fear that a regulatory framework favorable to bitcoin could threaten or harm the country’s financial system in some way.
(Featured image by iqbalnuril via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRIPTONOTICIAS, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
UBS Bailout of Credit Suisse Leaves Markets in Doubt and Spanish Banking Sector Suffers Instability
Hours after the purchase of Credit Suisse by UBS was sealed, the company's CEO has called for calm in the...
Grünhorn Becomes Sponsor of the Leipzig Kings
Grünhorn has been selling CBD oils for humans or pets, as well as skin care products and medical accessories, in...
Climate Finance: The NGO Wep-Burkina Trains about 30 Women
The coordinator of the NGO Wep-Burkina, Marie-Pierre Zoungrana, recalled that the objective of this workshop is to contribute to a...
Volatility in the Stock Markets Is Never a Good Sign
All the turmoil surrounding the collapse of SVB and Signature plus bail-outs of Credit Suisse and First Republic resulted in...
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 11]
Picking up where Trump left off, Biden has just put the TikTok ban back on the table. Now the question...