Ualá Aims to Strengthen Mexico Market, Reach Profitability

Since its launch in Mexico in 2020, Ualá has grown to over 1.7 million users locally, contributing to a regional total of more than 8 million users. This expansion has been fueled by the acquisition of ABC Capital, obtaining the necessary regulatory approvals, and adapting to both local and regional financial demands.

“Mexico offers significant economic and demographic potential, and we are committed to making it our largest market,” said Andrés Rodríguez Ledermann, Ualá’s General Manager for Mexico. The company has seen monthly growth rates of 10% to 15%, adding approximately 100,000 new users each month. In its most recent financing round, a US$300 million series E, investors such as Allianz joined to support Ualá’s expansion efforts and solidify its product offerings, with the goal of achieving profitability in both Mexico and Colombia.  

Ualá’s success in Mexico is driven by its understanding of the unique challenges faced by local users. The company launched a remittance solution in Mexico before introducing it in any other country, recognizing the importance of remittances to the Mexican economy. Through partnerships with MoneyGram and Western Union, Ualá provides free cash remittance services, which also contribute to the digital transformation of the sector.

The app’s latest update allows users to make payroll transfers, a feature available only under a banking license. This provides users with the opportunity to earn an industry-leading interest rate of 14%. “We’ve created a user experience where every Mexican can access financial products that were once out of reach,” said Rodríguez Ledermann.

“With our cost-efficient, fully digital operations, we have the lowest service costs in the market,” explained Pierpaolo Barbieri, Founder, Ualá. This efficiency enables Ualá to offer competitive rates that traditional banks find hard to match. In Argentina, Ualá’s cost per user is 93% lower than that of traditional banks. Although harder to quantify in Mexico, similar efficiencies are reflected in their operations.

“Ualá is not just focused on growth for its own sake; we are taking a long-term, sustainable approach,” said Barbieri. As a regulated institution, Ualá offers the security of deposit insurance, responsibly managed credit products, and educational resources to help users understand their financial options. Programs such as Aula Ualá focus on providing financial education to promote transparency. “Our mission is to give users transparent information,” he explained.

Ualá’s hybrid model, combining the benefits of a licensed bank and a fintech operation, provides efficient access to financial services. Despite market fluctuations and regulatory changes, Ualá remains committed to offering attractive yields. “Although we have adjusted our rates from 15% to 14% in line with market conditions, we continue to outperform our competitors,” said Barbieri, on the same day Banxico announced its interest rate cut to 10.25%.

To foster trust and encourage digital adoption, Ualá sees great potential in areas with limited traditional banking infrastructure. “The further users are from physical branches, the more valuable a digital bank becomes,” said Barbieri. In terms of cybersecurity, Ualá employs cutting-edge technologies, including biometric verification and AI-powered fraud detection, to ensure the safety of user accounts. “Our systems are 99.99% accurate, outperforming human-based security checks,” said Rodríguez Ledermann.

“This is a marathon, not a sprint. We are here for the long term, with a vision to make Mexico our largest market in the coming years”,  remarked Barbieri.