Walmart delves into Mexico’s challenging fintech arena

Walmart, the US retail giant, is venturing into Mexico’s fintech market with its Cashi digital wallet, aiming to compete with dominant players like Grupo Salinas’ Baz, Oxxo’s Spin, and MercadoPago of MercadoLibre. In April, Walmart de Mexico (Walmex) acquired Trafalgar, a payment app, to bolster its position in this market. Walmex foresees Cashi offering services such as transfers, withdrawals, and remittances initially, with potential expansion into loans and other financial services in the future. Marcelino Herrera, Walmex’s senior vice president of financial services, expressed ambitions for Cashi to become Mexico’s leading financial services application, emphasizing the need for continuous investment in the platform. While Walmart remains committed to expanding its footprint in fintech, analysts caution about potential risks associated with catering to unbanked or underbanked populations, particularly if Cashi ventures into lending. Despite the challenges, Walmart is bullish about its fintech endeavors, with plans to leverage synergies across its global operations and explore new opportunities in digital banking and financial services.

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