British Fintech Launches Mexico-US Cross-Border Payment SolutionBy Pamela Benítez | Wed, 10/27/2021 - 11:56
British fintech Revolut enters the Mexican market with the launch of cross-border payment solutions, including money transfer without hidden fees at real exchange rate through its US-Mexico remittance corridor.
"Revolut will be one of the first British fintechs to arrive in Mexico. Its launch in the country is the last step in its international expansion plans, following successful launches in Singapore and Australia in 2019, and the US and Japan in 2020," said the company. This London-based digital banking superapp is one of the first global neobanks, joining the fintech firms’ industry that offer technologies that facilitate mobile and online banking.
The launch of its cross-border payment solution between the US and Mexico is expected to satisfy peak levels of cross-border payments through transactions with no hidden fees at real exchange rates, allowing Revolut’s financial services to be competitive against other fintechs and megabanks.
“At Revolut, we believe sending peer-to-peer payments cross-border should be simple. In the context of today’s environment […] we are committed to providing consumers with a simple way to send money to loved ones and communities […] the launch of this remittance corridor is a major milestone for Revolut – one that we’re confident will improve the financial lives of customers in the US and in Mexico,” said CEO of Revolut US, Ron Oliveira.
The British fintech allows customers to globally spend, transfer and exchange money with about 28 different currencies through its app without paying excessive fees. Compared to other megabanks, Revolut also guarantees more transparency within transaction processes, as customers are able to sign up for an account and transfer money within minutes while tracking their transfers through the app and checking their process’ status.
Revolut was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko, who took advantage of the new financial technology regulations set in the UK at the time that allowed the company to become one of the most important fintechs in the ecosystem. Revolut operates in 35 countries, has recently reached a US$33 billion valuation and plans to explore other Latin American markets.
The fintech ecosystem has been able to tackle digital finance challenges posed by the COVID-19 pandemic in Mexico while consolidating as a real financial service alternative against traditional players, as pointed out by Juan Carlos Castro, Co-Funder of Briq Fund, to MBN.
“With the restrictions that were experienced in 2020, most users migrated to digital channels […] there is a vibrant ecosystem of new companies that were born in the digital channel and that have already been offering services via this medium: the fintech world. For these companies, an unprecedented scenario was proposed in which they went from being initiatives that were in the process of validating their business model, to real alternatives for millions of users eager for financial services. The adoption of the digital channel accelerated at a dizzying speed and it seems that there is no going back,” wrote Castro in MBN.