Mexican multinational beverage and retail company FEMSA has announced its acquisition of NetPay, a Mexican fintech startup. With this strategic move, the company looks to strengthen its foothold in the fintech segment and digital solutions markets.
NetPay has gained popularity in the payment services and solutions space, offering payment solutions for micro, small, and medium-sized businesses. FEMSA’s acquisition of NetPay has the potential to open up new opportunities for businesses to embrace digital payments in Mexico.
FEMSA owns convenience store chain Oxxo, which has around 19,000 stores in Mexico and Colombia. Focused on expanding its digital services, Oxxo launched Spin, a digital payment service earlier this year. As of February, Spin had around 5 million users, and the company anticipates up to 10 million users by the end of 2021.
With the acquisition of NetPay, FEMSA can further strengthen Spin’s market reach in the mobile payments space. This strategic move by FEMSA is indicative of the company’s focus on increasing its share in the fintech segment and digital solutions markets.
According to FEMSA Chairman, Jose Antonio Fernandez Carbajal, “Our investment in digital services, together with our successful OXXO convenience stores business, will help drive our strategy of tapping into the significant growth opportunities in Mexico’s retail and financial services sectors.”
FEMSA is prioritizing its profitable businesses in its investment strategy, and the company views digital services as a top priority. The acquisition of NetPay will expand the company’s reach in the digital payments space, and allow it to offer its customers more digital payment options.
Lately, technology has been disrupting traditional models of payments, and Mexico is moving in the same direction. Digital payments have become increasingly popular in Mexico, with the country’s government pushing toward the use of less cash. FEMSA’s acquisition of NetPay can be viewed as a step toward embracing fast and efficient payment systems.
Furthermore, digital payment systems are essential in combating the spread of COVID-19. Contactless payment systems have increasingly become popular, and NetPay is positioned to provide effective digital payment solutions to businesses.
In summary, the acquisition of NetPay is an important strategic move by FEMSA, expanding its foothold in the fintech segment and digital solutions markets. It will further strengthen FEMSA’s position in the mobile payments space, and its Oxxo digital payment system, Spin. The acquisition will enhance Oxxo’s payment offering and improve customer experience in Mexico.
Digital payments offer a whole new way to pay, and FEMSA is positioning itself to be at the forefront of this movement. This acquistion serves as an important milestone in the company’s journey toward embracing digital payment solutions. It certainly looks like FEMSA’s acquisition of NetPay will have a positive and long-lasting impact on the Mexican digital payments ecosystem.
