2025 is poised to be a pivotal year for the Mexican fintech sector, marked by consolidation, regulatory developments, and evolving investment trends. Mexico remains one of the most dynamic fintech markets in Latin America, with significant activity in licensing, funding and strategic partnerships. The growth of the Mexican fintech sector is evidenced by the constant increase of fintech companies operating in Mexico. As of 2024, the number of Mexican fintech companies (founded by Mexican nationals) was 773 – an increase of almost 19% compared to 2023. Mexico has also proven to be a relevant destination for foreign fintech players, with more than 217 foreign fintech companies from 22 different countries operating in Mexico as of 2024 (Finnovista Fintech Radar Mexico 2024). The entry into the Mexican financial market of relevant fintech companies, such as NuBank and Revolut, further positions Mexico as a prime environment for growth among major global fintechs.

Despite being Latin America’s second largest economy, Mexico still faces significant financial inclusion challenges. According to recent studies, Mexico continues to underperform compared to other countries in the region in terms of access to financial services. Fewer than 70% of Mexican adults have a bank account, and more than 50% of Mexican companies have never applied for a loan (UNAM and NuBank; the Mexican Banking and Securities Commission (CNBV)). This limited penetration of financial services has significant implications, restricting economic opportunities for individuals and small and medium businesses, while reinforcing economic inequality.

However, this challenge also presents a major opportunity for fintech companies to bridge the gap. The increasing digitalisation of financial services has opened new avenues for innovation, allowing fintech players to leverage technology and reach previously underserved populations. Through mobile banking, alternative credit scoring and data sources, AI-driven financial solutions, fully digital and efficient loan underwriting processes, and (in general) competitive rates and pricing, fintechs have provided access to financial services for millions of Mexicans who were previously excluded. NuBank announced that it alone had granted its ten millionth loan in January 2025, and Spin (the financial arm of Oxxo stores) had onboarded more than 12 million clients as of September 2024.

This disruption is reshaping the financial landscape, pushing even traditional banks to adapt by launching fully digital offerings and looking to fund fintechs’ loan origination. As the fintech sector continues to grow, a proportionate regulatory framework will be crucial to sustaining this momentum. Mexico’s financial inclusion gap remains a pressing challenge, but it is also a fertile ground for technological innovation and economic empowerment.

Regulatory Considerations for Fintechs in Mexico

Mexico has developed a comprehensive legal and regulatory framework for the provision of financial services. For example, Mexico’s novel Fintech Law (Ley para regular las Instituciones de Tecnología Financiera) was one of the first regulations of its kind in Latin America. Companies offering financial services without the proper licence or authorisation face severe consequences, including high fines and even criminal liability.

Given the regulatory environment, fintech companies must conduct careful legal analysis to ensure that their activities comply with applicable laws and to determine whether a specific licence is required in the context of their financial services or products, in order to avoid legal exposure and risks.

The granting of loans in Mexico is not a regulated activity; however, several other activities are regulated and not only require compliance with applicable statutes but may also require obtaining a banking or financial services licence beforehand.

To operate within the Mexican financial system, fintechs typically rely on the following regulated or supervised entities.

Aggregators and Acquirers (Agregadores y Adquirentes)

These entities facilitate card payment processing without requiring a financial licence. However, they must comply with registration and reporting obligations to ensure transparency and regulatory oversight.

Money Remittance Companies (Transmisores de Dinero)

These firms specialise in the transfer of funds domestically and internationally. They must be registered with the CNBV and adhere to strict anti-money laundering (AML) requirements, given the high-risk nature of remittance services.

Electronic Payment Entities (Instituciones de Fondos de Pago Electrónico – IFPEs)

IFPEs are authorised to manage e-wallets and issue debit cards, allowing clients to store, transfer and redeem electronic funds. However, they are not permitted to grant loans. Incorporation of an IFPE requires (among others) CNBV authorisation (with the favourable opinion of the Ministry of Finance and the Mexican Central Bank), and involves a complex regulatory approval process along with stringent capital and compliance obligations. Together with IFCs (see below), these are the two entities currently regulated by Mexico’s Fintech Law.

Crowdfunding Entities (Instituciones de Financiamiento Colectivo – IFCs)

These platforms facilitate (among others) collective, equity or debt financing through a crowfunding scheme. They must obtain CNBV authorisation (with the favourable opinion of the Ministry of Finance and the Mexican Central Bank). The complexity of the authorisation process and compliance obligations are equivalent to those of an IFPE.

Popular Financial Companies (Sociedades Financieras Populares – SOFIPOs)

SOFIPOs provide deposit-taking and lending services, subject to regulatory limitations based on their operational level. They require CNBV authorisation and have proven to be a popular alternative for fintechs seeking to offer banking-like services, given that they may take deposits from the general public. This last aspect makes them similar to banks, as deposit-taking has become somewhat of a “crown jewel” that Mexican fintech companies seek in order to offer a bundle of services to their clients. For example, a company that may initially be in the lending business may seek to obtain a SOFIPO licence to be able to fund its loan origination through such deposits, while offering clients debit and related services. This allows for cheaper funding, and at the same time provides fintechs with alternative revenue sources.

Banks (Instituciones de Banca Múltiple)

A full banking charter grants the broadest authorisation to offer financial services in Mexico, including (among others) deposit-taking, issuance of debit and credit cards, lending, and financial leasing and factoring. The process of obtaining a banking licence is highly regulated, requiring CNBV approval alongside a favourable opinion from the Mexican Central Bank. Many fintechs have now applied for and obtained fully fledged banking licences, which showcases not only their relevance in the Mexican financial market but also the trust the regulator has in the sector.

Given the complexity of Mexican financial regulations, fintechs must carefully evaluate their business models and select the appropriate regulatory structure to ensure compliance. As the sector continues to evolve, fintech players must remain proactive in navigating the legal landscape, balancing innovation with regulatory obligations.

Licences, Licences and Licences

Since the enactment of Mexico’s Fintech Law in 2018, licensing trends have evolved in response to regulatory challenges and shifting market conditions. Initially, fintech companies actively sought authorisation under the Fintech Law as IFPEs and IFCs. However, 2024 marked a turning point, with authorisations under the Fintech Law dropping significantly from 30 in 2023 to only nine in 2024. This decline was mainly driven by low revenue generation in IFPE business models, the high cost of regulatory compliance and increasing pressure on fintechs to achieve profitability.

Fintech companies have started considering more robust licences to enhance their business models and increase their range of financial services. SOFIPOs became an attractive vehicle due to their ability to accept deposits from the public, leading to acquisitions of SOFIPOs by major fintechs such as Nubank and Bradesco. However, SOFIPOs face regulatory limitations, such as restrictions on payroll portability and foreign funding, making them less versatile than a full banking licence.

Recognising these challenges, some fintechs have now shifted towards acquiring or applying for full banking licences, aiming for the ability to roll out a wide variety of financial services and access to a broader customer base.

The trend of fintechs pursuing full banking licences is expected to continue in 2025, solidifying their role in Mexico’s financial sector. Among the first acquisitions by a fintech of a Mexican bank was Uala’s purchase of Banco ABC Capital, followed by Kapital’s acquisition of Banco Autofin, signalling a strategic shift towards pursuing banking licences. Meanwhile, major international players such as Revolut, Nubank and Mercado Pago (Mercado Libre’s financial arm) opted to apply for banking licences from the outset. Over the past two years, the CNBV has authorised five new banking licences and is currently reviewing five more applications, highlighting sustained interest in the sector. Additionally, 2025 is set to mark the launch of new digital banks backed by incumbent institutions such as Santander and Banorte, further intensifying competition in the evolving banking landscape.

Lending and Debt Financing

The collapse of key non-bank financial institutions (NBFIs), such as Alpha Credit, Crédito Real and Unifin, previously shook investor confidence, including with respect to funding fintechs’ loan origination. However, emerging players have since gained traction, with some successfully securing financing even from traditional banks; BBVA’s Spark initiative has played a particularly important role in such financings.

Small and medium-sized enterprises (SMEs) lending in Mexico presents a significant opportunity for innovation. SMEs play a crucial role in Mexico’s economy, contributing approximately 40% of GDP and employing nearly 70% of the workforce (CNBV). Despite their importance, SMEs face major challenges in accessing credit; fewer than 50% of Mexican companies have applied for a loan at least once (CNBV). The main barriers to accessing credit identified by Mexican companies are high interest rates and strict and complex application processes (CNBV). This credit gap creates a significant opportunity for fintech lenders, alternative financing platforms and new banking models to offer tailored lending solutions for SMEs, by leveraging technology, data analytics and alternative credit scoring.

New fintech players have captured this opportunity and have successfully raised debt facilities from local and international lenders, mainly through tailor-made warehouse facilities to fund their loan originations. Mexico has solidified its position as the leading debt market in Latin America (Endeavour). As mentioned, warehouse financing has become a crucial funding source for lending-focused fintechs.

Recently, the Securities Markets Law was amended (and secondary regulations were issued) to provide for a simplified registration of securities, for purposes of democratising access to financing for SMEs through the securities market. In summary, the amendments and the regulation provide for a simplified authorisation procedure for registration of securities with the National Securities Registry, and subsequent public offers directed solely to qualified and/or institutional investors. The Mexican Stock Exchanges have been actively promoting this initiative, and the authors expect to see (and are hopeful of) lending fintechs accessing the capital markets in 2025. Prior to the collapse of NBFIs, public securitisations were executed by such entities on a regular basis.

Consolidation of the Sector

Venture capital investment in the Mexican fintech sector has matured, with funds investing in later stages and prioritising profitability over aggressive expansion (Endeavour). This shift has led fintech companies to adapt and seek alternatives to achieve profitability. The authors expect to see consolidation in the Mexican fintech sector in 2025 as a result of this trend. Past years already witnessed some of the first Mexican fintech M&A deals, including the acquisition of Tribal by Klar to expand its SME lending capabilities, and the acquisition of Mexpago by Australian unicorn Airwallex. Additionally, strategic partnerships have proven to be an alternative for fintechs to expand their product offerings and strengthen their market positions, such as Oxxo’s partnership with NuBank, or Rappi’s partnership with Banorte to launch Rappicard.

Conclusions

The fintech sector in 2025 will be shaped by regulatory shifts, evolving business strategies and the ongoing push for financial inclusion. Fintechs have evolved beyond being disruptors; they are now key players in the financial ecosystem, influencing the strategies of traditional banks and other relevant players of the financial ecosystem (including the regulators). The sector’s development in the coming year will be characterised by licensing trends, growth of the lending market, capital markets activity and strategic consolidations.

One of the most pressing challenges remains financial inclusion. Despite being one of the largest economies in Latin America, Mexico continues to lag on several fronts, including bank account penetration, SME financing and access to consumer credit. Fintech companies are uniquely positioned to bridge this gap by leveraging technology. However, fintechs must continue to balance innovation with regulatory compliance.

At the same time, the lending market presents a significant opportunity for fintech innovation. Despite their critical role in Mexico’s economy, SMEs continue to struggle with limited access to credit. Fintech lenders are stepping in to fill this gap. The rise of warehouse financing has provided lending fintechs with the funds necessary to expand their loan portfolios. Additionally, recent reforms in the Securities Markets Law, aimed at simplifying securities registration, could unlock new financing avenues for fintechs in the capital markets. If successful, 2025 may see fintech lenders issuing securitisations once again, following the turbulence experienced by NBFIs in previous years.

The sector is also witnessing increased consolidation, driven by venture capital funds shifting their focus towards profitability rather than aggressive expansion. This trend has led fintechs to explore strategic M&A as well as partnerships with traditional financial institutions or other fintechs. Further consolidation is expected as 2025 progresses, with fintechs either merging or partnering with established players to expand their service offerings and achieve profitability.

Regulatory clarity, financial inclusion efforts, lending innovation and market consolidation will dictate the pace of progress. While challenges remain – particularly around compliance burdens and profitability – fintech companies that successfully navigate these hurdles will be well positioned to drive long-term growth, expand financial access and redefine Mexico’s financial landscape.