Revolut Named Mexico the Future Epicenter of Global Digital Banking

• Fintechs are accelerating their expansion in Mexico, with Revolut seeing the country as a potential center of digital transformation.
• Payroll accounts have become the main target of neobanks.
• The latter are competing with traditional banks by obtaining licenses in the future.

Global fintech companies are stepping up their entry into the Mexican market: Revolut, Nubank, Mercado Pago, and others are preparing to obtain banking licenses or are completing the relevant procedures. The goal is to compete for middle-class customers and their salary accounts, which form the basis for credit and savings products. This is stated in the material of Bloomberg.

According to him, in a “winner takes most,” digital services will have an equal chance, but the one that offers the most convenient solutions will win.

According to the publication, Revolut has launched a test version of its service in Mexico and expects a full-fledged launch after obtaining a licence.

In addition, Banco Plata plans to launch in 2025, and Nu Holdings expects to become a bank in 2026 after preliminary approval from the regulator.

Mercado Pago is also in the process of approval. Startup Klar is choosing to acquire Bineo’s digital division to speed up its approval process.

Representatives of the companies noted that the market is growing rapidly, with the number of deposit accounts in the country increasing from 126 million in 2020 to more than 162 million in 2023.

The share of non-bank institutions, including fintechs, exceeds 30%. The average account balance is around 48,672 pesos (approximately $2,650).

Growing demand is also attracting international players, who see potential in the segment of users who formally have access to banking services but find them insufficiently convenient, as noted in the media.

Following preliminary approval in April, Nubank is preparing to fully launch banking operations.

Despite the interest of foreign companies, market participants note the complexity of regulatory procedures in Mexico.

The market is also seeing new competitors — Cashi, Spin by Oxxo, and DiDi — offering digital accounts, although they do not yet have full banking permits.

Revolut recently announced a €1bn investment in France, where it will open a new headquarters in Paris, and has received preliminary approval from the UAE Central Bank to launch services in the region.