Home Peer to Peer Lending With its new license, Uber kicks off its fintech enterprise in Mexico

With its new license, Uber kicks off its fintech enterprise in Mexico

With its new license, Uber kicks off its fintech enterprise in Mexico


American mobility large Uber kicks off its fintech enterprise in Mexico, the newest transfer from the tech firm to ramp up monetary providers abroad.

San Francisco-based Uber, which fully disrupted the transportation business, just lately acquired a fintech license from the native regulator in Mexico. It would enable the ride-hailing app to boost its providers in Latin America’s second-largest economic system, doubtlessly paving the way in which to digital wallets and debit and bank card merchandise in a rustic of 130 million.

Nearly a decade after its basis, the tech agency made a world push into the fintech sector. It launched Uber Cash in 2019 within the U.S. and has since replicated it in new international locations. Earlier this yr, it additionally struck a partnership with funds fintech Stripe to chop prices and incorporate new methods to pay, the newest illustration of its international fintech technique.

Fintech business grows in Mexico

With the current license in Mexico, Uber needs to increase fintech providers in one in all Latin America’s most coveted markets. Uber studies over 200,000 drivers and eight million prospects within the nation, in response to 2021 firm figures.

The corporate requested the license in 2019. Mexico’s fintech regulation mandates that firms should search a license to offer digital banking providers. However the course of has proved to be laborious, with solely dozens of fintechs companies having the ability to truly safe approvals.

Nevertheless, the fintech sector in Mexico has made great development lately, with the variety of monetary know-how companies increasing at double-digit charges. The digitization of Latin American societies has drawn curiosity from massive conventional banks in addition to non-financial companies to start out providing digital providers.

Dara Khosrowshahi, CEO at Uber.
Dara Khosrowshahi, CEO at Uber.

There are actually 650 firms within the ecosystem, in response to Finnovista. That is up from roughly 500 by the top of 2021.

Uber’s fintech technique in Mexico

The American agency launched its digital pockets years in the past within the U.S., with the intention of offering customers with real-time entry to journey earnings. It additionally supplied Uber debit playing cards and accounts to its drivers and a Visa bank card.

However whereas it expanded Uber Cash to different markets since, the service was nonetheless not accessible in Mexico. The corporate is protecting its plans below wraps for now. Nevertheless, it’s anticipated that this new technique of fee will allow customers to retailer funds in a digital account, in addition to have entry to playing cards.

Uber mentioned the brand new license would strengthen its general consumer expertise in Mexico. “Fee processing for the app will stay the identical,” a spokesman instructed Fintech Nexus. “This course of is concentrated on optimizing the expertise throughout the app, and the license opens doorways to new prospects sooner or later.”

Uber’s transfer is preceded by the expertise of mobility competitor Didi. The Chinese language ride-hailing app launched Didi Pay and Didi Loans in Mexico. In simply two years of operation, it claims it has granted over 5 million loans.

Uber declined to touch upon whether or not it might launch credit score capabilities sooner or later, or what the roadmap for its fintech merchandise might be.

  • David is a Latin American journalist. He studies repeatedly on the area for international information organizations equivalent to The Washington Publish, The New York Occasions, The Monetary Occasions, and Americas Quarterly.

    He has labored for S&P World Market Intelligence as a LatAm monetary reporter and has constructed experience on fintech and market traits within the area.

    He lives in Buenos Aires.



Please enter your comment!
Please enter your name here