- Fintoc, a fintech specializing in payment solutions, receives an investment to develop its Pay by Bank model
- The company already has 400 customers in Chile and Mexico
In a landscape where investments in startups have become more cautious, Fintoc, a company specializing in payment solutions for merchants in Chile and Mexico, celebrates an important milestone: the closing of its Series A funding round for $7 million.
As we reported in a report at the beginning of the year, the adoption of Pay by Bank will be one of the major trends in Paytech in 2024.
Conekta is another Mexican payment platform that offers a Pay by bank solution, which allows users to make payments directly from their bank accounts using Mexico’s Sistema de Pagos Electrónicos Interbancarios (SPE).
In Uruguay, dLocal is another global payment platform that offers country-specific payment solutions, including Pay by bank.
In comparison to other parts of the world, the United States has lagged behind in adopting Pay by Bank, because in this country, consumers are very attached to their cards. But in 2024, this payment method will experience accelerated growth driven by the convergence of several trends.
Fintoc: From Chile to Mexico
Founded in 2020 by Cristóbal Griffero and Lukas Zorich, Fintoc has undergone a remarkable transformation in the last two years. Born as a company focused on open banking related services, the company has successfully pivoted to the payment methods industry, positioning itself as a key player in the region.
Fintoc’s value proposition lies in its innovative Pay by bank model, which allows merchants to accept payments directly from any bank, without the need for credit or debit cards. This solution is based on the Sistema de Pagos Electrónicos Interbancarios (SPEI) in Mexico and the bank transfer network in Chile.
Unlike traditional providers, Fintoc offers merchants several advantages:
- Lower commissions Merchants can save up to 70% compared to credit and debit card fees.
- Greater immediacy Transactions are processed in seconds, which streamlines the payment process and reduces lines at stores.
- Greater security By eliminating the need to use physical cards, the risk of fraud and identity theft is minimized.
- Greater financial inclusion It allows more people to make electronic payments, even those who do not have access to credit or debit cards.
Expansion in Mexico
Fintoc has its sights set on Mexico, where only 50% of the population pays online. The company sees a great opportunity to reach the other 50% and replicate the success of models like UPI in India or PIX in Brazil.
Currently, Fintoc has more than 400 customers in Chile and Mexico, including startups and large corporations. In Mexico, the company aims to make the country its main market in the next 18 months.
The closing of Fintoc’s Series A round was joined by important investment funds, such as Monashees, Propel, Luis Madrazo, Eduardo Serrano, Diede Van Lamoen, Iñigo Rumayor, among others. This support reflects the industry’s confidence in the company’s potential and its innovative model.
Key Data
- Fintoc has raised a total of $10.6 million in its history.
- The company processes more than $60 million per month in payment volumes.
- The company is supported by renowned investors such as Monashees, Propel, Luis Madrazo, among others.