Mexico’s BancoBASE is revamping its corporate payments processing capabilities through a partnership with Volante Technologies, the companies said in an announcement Tuesday (April 9).
Volante will provide the bank with end-to-end international and domestic corporate payment processing capabilities as BancoBASE aims to modernize its offering, The financial institution will adopt Volante’s VolPay technology for domestic real-time payments processing via SPEI, the country’s interbank electronic payments system, as well as SPID, to process payments in U.S. dollars.
The partnership will also support cross-border payments processed via the SWIFT network. Moving forward, the bank said it aims to expand the integration of VolPay technology to include domestic bulk payments in the Mexican peso as well as to digital retail payments.
“With a rapidly changing payments landscape, we were looking for a payments infrastructure solution that could deliver on our current domestic and international payments needs and support our future growth strategy,” said BancoBASE IT and Operations Director Prudencio Frigolet in a statement. “With Volante and VolPay, we are confident of the competitiveness of our corporate payments offerings today, as well as our ability to stay ahead of tomorrow’s emerging trends.”
In another statement, Volante Technologies VP, Latin America Operations Luis Melgarejo said the collaboration with BancoBASE represents the company’s “ongoing commitment to providing financial institutions in Latin America with the same powerful, flexible payments technology that powers the world’s largest banks — tailored to local market needs.”
As the financial services space focuses on upgrading corporate payment capabilities for enterprises and small businesses, analysts have also shed light on small businesses’ struggle to access capital in Mexico. The credit gap offers an opportunity for FinTechs like Credijusto, which secured a $100 million credit facility from Goldman Sachs earlier this year.
That competition has led traditional lenders to consider strengthening their small business lending propositions, too; however, according to Finnovista Co-Founder and Managing Partner Andres Fontao, “they aren’t yet willing to take on that risk for the returns available.”