FEMSA’s fintech arm sees 10 million users in Mexico by 2023

MEXICO CITY, Oct 20 (Reuters) – Spin by Oxxo, the financial technology initiative launched by Mexican bottler and retailer Femsa, is set to reach 10 million users by 2023, up from four million now, Spin CEO Asensio Carrion told Reuters .

“The porosity we have allows us to reach more distant places and offer services where there are none. We are in every Mexican state,” Carrion said in an interview Wednesday.

Femsa, parent of grocery chain Oxxo, believes its ubiquitous stores, which according to the company’s data number over 20,100, are ideal sites to connect customers with debit cards and digital account services.

About 60%-65% of Spin by Oxxo’s users are active, which the firm describes as customers who have made a transaction or held deposits in their accounts in the past 56 days.

Internally funded, Spin by Oxxo has quickly become a major player in Mexican fintech.

In comparison, Latin America’s largest fintech Nubank has around 2.1 million customers in the country, while the local player Stori aims to reach two million customers by 2023.

Mexico’s Grupo Financiero Banorte said in its second quarter results that it had 6.7 million digital customers. It revealed the launch of a new digital bank earlier this month.

Businesses have set their sights on Mexico, a country where less than 50% of the population has a bank account, according to official data.

Spin by Oxxo was granted a new license to operate as a financial technology institution in Mexico earlier in October, which will expand its presence in the money transfer market by allowing customers to receive money from abroad into accounts.

The move mirrors other foreign and local fintechs such as Argentina’s Uala and Mexico’s Bitso, which also entered a remittance market that brought $51.6 billion to Mexico in 2021.

Femsa is also applying for permission to offer accounts that allow customers to deposit larger amounts and receive wages.

The company has more than 20,600 Oxxo stores across Latin America and plans to increase the number by 50% over the next decade.

Carrion also did not rule out international expansion of Spin by Oxxo in the future.

Reporting by Valentine Hilaire Editing by Bill Berkrot

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