Mexico’s fintech landscape continues to flourish, with Finnovista’s Fintech Radar Mexico 2024, co-presented by Visa, reporting 990 fintech companies operating in the country by the end of 2023. This represents an 18.4% compound growth over the past five years, with a notable increase from the 650 firms recorded in 2023.
The ecosystem’s resilience is evident, with proptech and financial management sectors showing low market exit rates and a surge in new ventures. Credit-specialized firms, propelled by e-commerce and “buy now, pay later” services, along with open finance companies embedding financial operations, have also seen significant growth. Despite the overall expansion, crowdfunding is the sole segment experiencing a decline, with three fewer fintechs than in the previous year.
Investor confidence in open finance is high, with 75% of these companies securing venture capital, signaling potential for substantial impact on the financial sector, as seen in Brazil and Colombia. Mexico’s pioneering yet evolving regulatory framework, coupled with its attractive market conditions, positions the country as a global fintech contender.
Visa Mexico’s General Director, Luz Adriana Ramírez, recognizes the vast opportunities for digital payment innovation and financial sector contributions, fueled by the nation’s population size, internet coverage, and smartphone penetration. Reflecting this potential, fintech revenue growth is impressive, with 62% of companies reporting over $500,000 in 2023, and projections suggesting 80% will exceed this figure in 2024.
