While SMEs struggle to access credit without unpayable fees and time-consuming processes, Mastercard and Jeeves are offering physical and digital cards for Mexican businesses that allow them to pay in local currencies with no fees,unlimited virtual cards and up to four percent cash back.
Global leading payment company Mastercard decided to partner with Jeeves, the preferred fintech among 700+ Mexican SMEs and the first expense management and banking entity approved to be a Mastercard Principal Member in the country.
The partnership aims to attend the Mexican SMEs' banking problem, where lengthy bureaucratic processes and excessive fees prevent them from accessing credit while creating a rapid operational capacity through the Mastercard network since the four million existing SMEs are fundamental to Mexico’s economy.
This financial solution allows Mexican businesses, such as startups, to pay with 30 days of credit in local currencies where Mastercard currently operates: Mexico Colombia, the US and Great Britain.
Benefits of having the card include a no-fee opportunity, unlimited ownership of digital cards, up to four percent in cash refund and record-time on credit card approval with no personal guarantees.
“The startup ecosystem in Mexico and in Latin America is thriving. As founders ourselves, we understand their needs, which is why it is important that we offer this card to them now. In addition to no fees and up to four percent cashback, our cards provide the flexibility and security LATAM startups are hungry for,” said Dileep Thazhmon, CEO and Founder, Jeeves.
This joint work was made possible mainly due to two successful Silicon Valley-based rounds of investments from Andreessen Horowitz (a16z), Y Combinator (YC) and CRV venture capital firms, which raised over US$188 million.
As mentioned before, Jeeves is the preferred fintech company among more than 700 local Mexican businesses, including Runa, Moons, Bitso, Kavak and Jüsto.
Among these, Kavak is one of the fastest-growing startups in the country that decided to rely on the Jeeves card during the past year and now reports exponential growth.
“We need a partner that understands and fulfills our needs and thanks to Jeeves’ card, we can operate cross border seamlessly,” said Carlos García Ottati, CEO and Founder, Kavak.
The Mexican startup expects that collaborations like the Mastercard-Jeeves encourages fast digital transformation to support startups through serviced products that satisfy their needs and facilitate their access to financial solutions.
“Thanks to Jeeves, we can grow our business without worrying about the logistics of expenses and payments. Each of our team members has access to their own cards and is tailored to their specific needs. When we travel – Jeeves makes it easy. You can pay in any currency and link it to the bank account you prefer. Our finance team loves it. No other company lets you go global so easily and quickly,” said Alexander Clapp, COO and Co-Founder, Moons.
On the other hand, MBN expert contributor Hector Cárdenas, CEO and Co-Founder, Conekta, presented an outlook for fintech and payments. He discussed the importance of attending to the rapid-growing digital financial sector within the Latin American region in 2022
“Latin America is undergoing one of its most interesting evolutions toward the digital economy. It has also become one of the leading regions for financial technology companies worldwide. Along with this growth has come the development of the financial technology sector, which is among the most relevant industries for the continued progress toward digital adoption in the region. Mexico has become an epicenter for the growth of the sector and is quickly turning into one of the most interesting markets to understand the current and future trends of the industry,” wrote Cárdenas for MBN.