Argentine FinTech Tapi Secures $22M for Mexican Market Entry

Argentine payment processor Tapi has successfully secured $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 utilizing the newly acquired funds. “We’re going to be working with the FinTechs that are going to grow the most, continue to do the most financial inclusion and transform cash to digital payments, so Mexico is very important for us,” he said. Tapi, which currently processes payments for major Latin American platforms like Mercado Pago and Lemon, projects it will handle about $400 million in payments across five countries this year, marking a fourfold increase from the previous year.

Tapi’s Technological Backbone and Market Projections

The name ‘Tapi’ merges Mindlin’s initial venture, a digital wallet named TAP, with API (application programming interface), reflecting the technological foundation of the company. With a workforce of approximately 70 employees mostly based in Argentina, Mindlin anticipates rapid growth in transaction volumes.

“I’d say in a year from now we’ll have 80% of the banked population in Mexico working with our infrastructure,” he estimated, projecting a fivefold increase in total payment volume to 10 million transactions per month by year-end.

Digital Payment Trends in Mexico

A report by PYMNTS 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 utilizing digital features, there is a significant demand for such enhancements, with 62% of consumers indicating a preference for digital options not currently available.

This gap presents an opportunity for FinTech companies like Tapi to bridge the divide, improving the overall shopping experience and potentially saving money for consumers 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 increasing interconnection of digital payment solutions and consumer expectations in emerging markets.