Fintech Market Overview

This article does not constitute legal advice.

Client identification in Mexico

Fintech Software

Although there is no generally recognised digital identity in Mexico, applicable law recognises an 'advanced electronic signature' that could be considered a partial digital identity scheme. The term 'electronic signature' is defined in the Commerce Code as data in electronic form affixed to, or logically associated with, a data message, which may be used to identify the signatory in relation to the data message and to indicate the signatory's approval of the information contained therein. Electronic signatures have the same legal effect as a handwritten signature and have probative value.1

Notwithstanding the above, the Commerce Code differentiates between an electronic signature and an advanced electronic signature. As an example, user identifications and passwords or digital signatures are considered electronic signatures but not advanced electronic signatures.1

The Commerce Code considers that an electronic signature qualifies as an advanced electronic signature if it complies with specific requirements, which are only currently met in Mexico if a certified services provider (PSC) issues the signature. PSCs are private companies, notaries public, public brokers and certain public institutions that are duly authorised by the Ministry of Economy to serve as a PSC (e.g., the Tax Administration Service (SAT)).1

The most common advanced electronic signature is the e.firma, developed initially by the SAT for tax matters and proceedings with the authorities, but, in late 2016, the Mexican Federal Tax Code was amended to allow private use of the e.firma by individuals, for signing electronic agreements. In theory, PSCs can develop advanced electronic signatures that could be issued for any individual (even non-Mexican citizens or residents).1

Advanced electronic signatures are generally acceptable for the execution of commercial transactions. An exception would be transactions that require a specific form by statute.1

Digital onboarding in Mexico

Fintech in Mexico

Fintech in other countries

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