Tiendanube Integrates Kalto to Enhance B2B Payments

Tiendanube, the leading e-commerce platform in Latin America valued at US$3.1 billion, is expanding its fintech capabilities with the integration of Kalto, a Mexico-based B2B payments platform. Kalto specializes in streamlining cash flow for small and medium-sized enterprises (SMEs) through innovative financial solutions. This move aims to empower entrepreneurs across the region and enhance opportunities for businesses in Latin America's growing e-commerce market, according to Dan Pinchasi, co-founder, Kalto.

"We noticed that many SMEs were still managing finances manually with pen and paper," Pinchasi said in an interview with MBN. Despite Mexico’s progress with digital invoicing, many small businesses were still heavily dependent on traditional, outdated methods. Kalto’s mission is to enable these businesses to efficiently manage accounts receivable and payable, provide actionable insights, and offer financing solutions through invoice factoring.

“With Kalto’s expertise in financial services and Tiendanube’s broad reach in Latin America’s e-commerce space, this integration creates the foundation for a thriving local ecosystem where Mexican merchants can access the tools they need to succeed,” said Rodrigo Rivera, Chief Strategy Officer, Tiendanube. "This partnership marks a key step forward in reshaping the integration of financial services with e-commerce in Mexico," he added.

Although Latin America’s digital economy is growing rapidly, Pinchasi highlighted that Mexico faces unique challenges compared to countries like Brazil and Argentina. “In Mexico, cash transactions remain dominant, and there is still a large informal economy,” he explained. While digital payments and online transactions are increasing, digital penetration is still lower than in neighboring countries.

To address these challenges, Kalto and Tiendanube are customizing their services to local needs rather than importing solutions from other markets. "We must build products tailored to Mexico. A one-size-fits-all approach does not work here," Pinchasi emphasized.

One of the key developments resulting from this integration is Pago Nube, a native checkout and payment gateway embedded within Tiendanube’s platform. By controlling the transaction flow, Pago Nube sets the stage for a variety of financial services, including working capital loans, supplier payments, and financial analytics, according to Pinchasi.

"Our goal is to help Tiendanube’s merchants not only manage their e-commerce stores but also optimize their entire operational and financial lifecycle," he said. With data gathered through Pago Nube, Tiendanube can offer personalized credit solutions based on merchants' real-time sales data and provide insights to improve their financial health.

To combat the ongoing issues of fraud and chargebacks in Mexico, the teams have made significant investments in risk management. "We have a dedicated risk team across multiple countries, utilizing machine learning algorithms and transaction data to reduce fraud and maximize conversion rates," Pinchasi noted.