Global fintech giant Airwallex said it has acquired MexPago, a rival payments company based out of Mexico, for an undisclosed sum.
The deal will help Airwallex, which is backed by the likes of Tencent and Li-Kashing, Hong Kong's richest man, expand in the Americas.
The deal, which is subject to regulatory approvals and customary closing conditions, marks a major push from Airwallex into Latin America, a market that has become more attractive for fintech firms thanks to a primarily younger population and increasing online penetration. "You get both the inflow and outflow of money," he added."That's really what we like the most. We can take a global company to Mexico and also help the global companies making payments to the supply chain."U.S.-China trade tensions have escalated in recent years, as Washington seeks to address what it sees as China's race to the bottom on trade.China has sought to address these concerns, agreeing to"substantially reduce" the U.S.
The company, whose customers include Papaya, Zip, Shein and Navan, processes more than $50 billion in a single year. It has also partnered with the likes of American Express, Shopify and Brex, to help it expand its services internationally. Zhang said that the company is at a stage where it has reached enough maturity to consider an initial public offering — the company says it now processes more than $50 billion in annualized transactions. However, Airwallex won't embark on the IPO route until it gets to a certain amount of annual revenue, Zhang added.
MexPago offers much of the same services as Airwallex — multi-currency accounts for small and medium-sized businesses, foreign exchange services, and payment processing — but there are a few more payment methods it has on offer which Airwallex doesn't currently provide.A big selling point of the MexPago deal, Zhang said, is the ability to obtain a regulatory license in Mexico without having to embark on a long process of applying with the central bank.
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