This funding round, led by Castle Island Ventures, aims to expand Félix’s operations in both Latin America and the U.S.
The company leverages WhatsApp’s extensive reach in the region, using a chatbot to streamline cross-border money transfers, including voice-activated transactions. The startup’s interface eliminates the need for additional app downloads, simplifying the process for users on both ends of the transaction.
In 2023, remittances from U.S. workers to Latin America totaled $155 billion, presenting a substantial market opportunity. Félix Pago capitalizes on this by offering low-cost transactions facilitated by Circle’s USDC stablecoin. This approach reduces foreign exchange costs and pre-funding needs, enabling Félix to offer the first transaction free and subsequent transfers at competitive rates ($2.50 for Guatemala and Mexico).
Additionally, Félix has established partnerships for cash pickups in Mexico, Guatemala, and Honduras, catering to the preference for cash among many recipients.
Félix Pago’s innovative use of WhatsApp sets it apart from other players like BidSend, Leap Financial, and Zapp. While WhatsApp supports peer-to-peer payments in Brazil and India, broader adoption could enhance Félix’s user base.
Meta, WhatsApp’s parent company, appears supportive of these third-party developments, highlighting similar integrations in its WhatsApp for Business blog. The seamless integration with WhatsApp ensures users don’t need to navigate multiple platforms, making remittances as simple as sending a message.
The company’s growth strategy includes leveraging partnerships with major platforms like Mercado Libre and Nubank. A partnership with Mercado Libre, for instance, resulted in 25% of new users coming from Mercado Pago referrals. Similarly, collaboration with Nubank has further accelerated growth.
Félix Pago’s primary growth driver, however, remains referrals, supplemented by influencer marketing and Facebook campaigns targeting blue-collar Latino professionals in the U.S. This demographic, which includes workers in construction, food, and home services, forms the core of Félix’s user base.
Looking ahead, Félix Pago plans to expand into El Salvador, Nicaragua, the Dominican Republic, and Colombia. The ultimate vision is to become the go-to financial companion for Latino immigrants in the U.S., offering services beyond remittances, such as credit building.
CEO Manuel Godoy emphasizes the importance of addressing remittance needs for all Latinos to achieve this goal, positioning Félix Pago to outpace competitors and cement its place in the fintech landscape.
