Ualá Strengthens Presence in Mexico with New Releases
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Ualá Strengthens Presence in Mexico with New Releases

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Sofía Hanna By Sofía Hanna | Journalist and Industry Analyst - Fri, 06/09/2023 - 12:49

Technology company Ualá announced that it would add three new services in Mexico after receiving approval from the CNBV to acquire the bank ABC Capital and capitalize it to expand its operations in the country. Starting on June 7, those who download the Ualá app will be able to receive a 9% annual return on their account balance.

Besides acquiring ABC Capital, Ualá will invest US$150 million in the next 12 months. Ualá's new developments in the Mexican market represent an important milestone, allowing it to strengthen its value proposition, which already includes payment, investment and credit tools. These business verticals are already available in Argentina, Ualá's country of origin, where the company expects to reach breakeven in 2023 in only six years of operation. 

Ualá app users will receive a 9% annual yield on the balance in their account, gaining access to a competitive savings tool. Daily returns will be paid at a fixed annual interest rate on the amount users keep in their accounts. The generated yields will be reflected in the app, and the user can dispose of their money anytime without limitations, caps or additional movements. "According to the National Survey on Financial Inclusion (ENIF), 54% of people in Mexico save informally without receiving any return on their savings. We are excited to offer options that bridge these gaps by encouraging savings simply and securely, offering higher returns than those historically seen in the Mexican market," says Andrés Rodríguez Ledermann, VP of Wealth Management, Ualá.

Users will also be able to use Ualá to collect remittances sent through the over 200 countries where Western Union, Vigo and Orlandi Valuta have offices. Previously, Mexicans living abroad could send money through Moneygram and the company has added a new alternative for these transactions. "From January to April alone, more than US$18 billion were received nationwide, and the annual increase was 10.1%. In the first four months of 2023, 98.8% of total remittance receipts were made through electronic transfers in Mexico. Remittances support the economy of thousands of families," says Luis Madrazo, CEO, Ualá.

 The company also introduced its Ualá+ loyalty program, through which users can accumulate points for each purchase and redeem them at establishments such as Amazon, Starbucks, Google Play, Nintendo, Steam, iTunes, Xbox and Uber Eats. The program offers one point for every MX$20 (US$1.2) paid with a debit card and two points for every MX$20 in credit card purchases. During a press release, Ualá also highlighted the variety of promotions and discounts it offers in categories such as tourism and travel, gastronomy, fashion and lifestyle, entertainment, supermarkets, transportation, education, gaming, delivery and insurance.

Photo by:   Ualá

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