Rappipay Exits Mexico Fintech Law Process

Rappipay, the financial arm of Rappi, has withdrawn its application to operate as an Institution of Electronic Payment Funds (IFPE) under Mexico’s Fintech Law. This decision coincides with the closure of its Rappicuenta debit account service and a shift in focus to its Rappicard credit card product, operating through a partnership with Banorte.

In June 2021, Rappipay Mexico received conditional authorization from the National Banking and Securities Commission (CNBV) to operate as an IFPE. According to El Economista, the approval required Rappipay to meet certain administrative requirements for its definitive approval to be published in the Official Gazette of the Federation.

Rappipay had been operating under the eighth transitory provision of the Fintech Law, allowing it to function until a decision was made on its application. However, from September to November 2021, the CNBV informed Rappipay that its responses did not meet the necessary conditions for final approval. In December 2023, Rappipay submitted its withdrawal request.

“I hereby present, on behalf of Rappipay Mexico, S.A.P.I. de C.V., our withdrawal for all legal effects from the application submitted to this H. Commission for the organization and operation of an Institution of Electronic Payment Funds,” said Martín Alfonso Mexia Ponce, Rappipay Mexico’s legal representative. 

On Jul. 3, the Inter-institutional Committee (comprising the CNBV, Mexico’s Central Bank (Banxico), and the Ministry of Finance) approved Rappipay’s withdrawal, rendering its conditional authorization null.

Following this withdrawal, Rappipay is required to demonstrate to the CNBV that it has concluded all related activities. Furthermore, it must provide details on the number of accounts it maintained at the time of withdrawal.

The exit plan, which must be submitted to the CNBV, should include ongoing communication with customers about the closure of Rappicuentas and instructions for withdrawing their funds. As of now, it is unclear whether Rappipay has supplied all necessary information to the CNBV for the closure of its operations. Requests for comments have not been answered.

As of February, Rappipay is one of 36 entities that have withdrawn their applications for licenses under the Fintech Law.