Mexico Fintech Sector Authorizations Reach 89 Under Fintech Law

Mexico’s financial authorities have authorized 89 Financial Technology Institutions (ITFs) and Novel Models since the enactment of the Fintech Law in 2018. According to the latest annual report from Mexico’s Central Bank (Banxico), 198 total applications were submitted through late 2025, reflecting a structured expansion of the digital finance ecosystem.

The inter-institutional committee, comprising the National Banking and Securities Commission (CNBV), Banxico, and the Ministry of Finance, has resolved 139 of these cases. The authorized entities are primarily divided into Electronic Payment Fund Institutions (IFPE) and Collective Financing Institutions (IFC).

Electronic Payment Fund Institutions (IFPE) represent the largest segment of the sector. Out of 134 applications, 62 have received authorization. These institutions focus on various business models:

• Basic: 78 applications

• Physical or Online Commerce: 18 applications

• Foreign Currency Operations: 18 applications

• Service Provision and Voucher Operations: 20 applications

In the crowdfunding sector (IFC), 27 out of 55 applications were authorized, with 34.4% of the proposed collective financing schemes targeting the real estate sector. While debt crowdfunding continues to grow, Banxico reported a weighted average default rate of 8.4%, with some specific entities exceeding 30%.

Despite consistent growth, the fintech sector remains a small fraction of Mexico's broader financial system. The total capital of these institutions equals 4.9% of that held by multiple banking institutions. However, the sector’s size is now comparable to other small intermediaries, with ITF social capital representing 42.1% of that held by Popular Savings and Loan Institutions (Sofipos).

Electronic Payment Funds (FPEE) reached MX$34 billion in September 2025, an increase from MX$24.62 billion the previous year. Activity is highly concentrated, with 82.4% of reported assets held by the eight largest IFPEs.

Banxico’s Financial Stability Report indicates that while individual investor risks exist due to default rates in crowdfunding, the sector's current scale does not pose a systemic threat to the Mexican financial system.

Need for a Fintech Law Update

Back in November of 2025, representatives of the financial technology sector urged Mexican regulators to modernize the Fintech Law, arguing that the 2018 legislation is no longer compatible with current market dynamics. 

According to industry spokespeople, the lack of a "level playing field" in certain sectors is inhibiting competition and innovation. The current regulatory lag is cited as a primary factor in creating market uncertainty and complicating operations for both established and emerging fintech firms.