Fintech Market Overview

This article does not constitute legal advice.

Cross-border payments in Mexico


In line with Mexico's legal landscape, the Fintech Law and other regulations pertaining to financial services and the fintech sector are strongly aimed at protecting Mexican consumers and amateur investors. Recent years have seen some deregulation regarding foreign engagement in finance-related activities; for instance, no longer having limits on overseas ownership in banking establishments. However, a majority of operations can still only be conducted if a local presence is available.1

During the early days of fintech development in Mexico, regulated activities needed to be carried out by locally incorporated ITF entities due to a similar protectionist approach. In order for ITF entities to be eligible, they must be incorporated under Mexican law, have a corporate domicile in any state within Mexico, and have a physical office within the country.1

It is only through partnerships with local regulated entities that foreign fintech companies can actively participate in regulated activities in Mexico. A Mexican entity may not advertise or offer financial products or services to individuals, and offshore entities may not actively advertise or offer financial products or services there.1

Lastly, it is worth mentioning that, while there are no currency control mechanisms in Mexico, Mexican parties may discharge their obligations in any currency (including foreign currency) by paying any sums in Mexican currency at the rate fixed by Banxico on the date the payment is made.1

Fintech in Mexico

Fintech in other countries

  1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/mexico