Fintech
Argentine Fintech Tapi Secures $22M to Enter Mexican Market
Argentine payment processing company Tapi has successfully raised $22 million in Series A funding to accelerate its expansion into the Mexican market, according to a recent Bloomberg News interview with co-founder/CEO Tomas Mindlin.
Strategic Expansion and Financial Growth
Tomas Mindlin outlined Tapi’s ambitious plans for using its newly acquired funds. “We will work with FinTechs that are going to grow the most, continue to do more financial inclusion and transform cash payments into digital payments, so Mexico is very important for us,” he said. Tapi, which currently processes payments for major Latin American platforms such as Mercado Pago and Lemon, expects to process about $400 million in payments across five countries this year, marking a four-fold increase from the previous year.
Tapi’s technological backbone and market projections
The name “Tapi” merges Mindlin’s initial initiative, a digital wallet called TAP, with API (Application Programming Interface), which reflects the company’s technological foundation. With a workforce of around 70, mostly based in Argentina, Mindlin expects rapid growth in transaction volumes.
“I would say that in a year, 80% of the Mexican banking population will be working with our infrastructure,” he estimated, predicting a fivefold increase in total payment volume, reaching 10 million transactions per month by the end of the year.
Digital Payment Trends in Mexico
A PYMNTS report as part of the “2024 Global Digital Shopping Index” highlighted the current state of digital shopping in Mexico. Despite nearly half of Mexican consumers shopping in-store without using digital capabilities, there is significant demand for such enhancements, with 62% of consumers indicating a preference for digital options that are currently unavailable.
This gap presents an opportunity for FinTech companies like Tapi to bridge the gap, improving the overall shopping experience and potentially saving consumers money through digital integrations. This trend supports the concept of Click-and-Mortar™ shopping, where traditional retail experiences are enhanced by digital capabilities.
This strategic move by Tapi not only highlights its growth trajectory but also underscores the growing interconnection between digital payment solutions and consumer expectations in emerging markets.