Argentina's Uala pairs with Mexico's ABC Capital for remittance market

MoneyGram International

09/09/2022 16:32

By Valentine Hilaire
    MEXICO CITY, Sept 9 (Reuters) - Argentina's Uala has moved
into Mexico's remittance market by pairing up with local bank
ABC Capital, the financial technology firm announced on Friday,
in a bid to get a slice of a market that captured $32.8 billion
in the first seven months of the year according to official
data.
    The new service will allow Mexican users to immediately
access funds sent to them by family or friends abroad, using an
app that charges no commissions.
    Uala announced a planned acquisition of ABC last year, but
is still awaiting regulatory approval and has opted to work with
the Mexican bank to enter the local remittance market ahead of
the takeover being finalized.
    Uala, founded in 2017, began operating in Mexico in 2020 and
is valued at around $2.4 billion. Among its backers are funds
such as SoftBank Latin America Fund and Tencent.
    Anyone in Mexico may receive up to $900 in their account
monthly, more than double the average individual remittance that
is sent per family, which between January and July 2022 was
$406.
    Mexicans living and working abroad - particularly in the
United States - are sending record amounts of money home to help
their families as the Mexican economy continues to stutter.
 urn:newsml:reuters.com:*:nL1N30827J
    Uala will compete with key players such as Western Union,
Vivo, Moneygram, Wells Fargo, Moneygram, Xoom and startup Bitso
in the remittance market. 
    The company is looking to expand as it announced on Tuesday
the acquisition of Ceibo Creditos, a firm specialized in credits
and financial solutions with a buy now pay later scheme.

 (Reporting by Valentine Hilaire; Editing by Josie Kao)
 ((Valentine.Hilaire@thomsonreuters.com;))