LatAm Payments Firm Ebanx Expects to Double Mexican Market

Payments firm Ebanx anticipates that it will double its business operations in Mexico for the second consecutive year as it moves to onboard 10 new retailers and launch its first office in the country with an expanded roster of employees.

Ebanx co-founder and CEO Joao del Valle told Reuters on Monday (Jan. 11) that the company is doubling down on its efforts in the Mexican market, which is Latin America’s second-largest economy behind Brazil.

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Founded in 2012 and headquartered in Curitiba, Parana, Brazil, Ebanx is an integrated financial services company specializing in cross-border money transfers.

The company offers an end-to-end payment solution across the entire eCommerce transaction flow and anticipates that transactions in Mexico will grow 105%, according to projections shared with Reuters. Mexican transactions surged 115% last year.

The company launched in Mexico in 2015 and views the country as its second most important market, with a competitive retail landscape, Del Valle said. In Brazil, there are roughly five major marketplaces that dictate the retail environment.

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“Mexico is much more diversified,” del Valle said. “We probably have 10 marketplaces that do 80% of the market, so that’s much healthier and much more room for competition and to provide different services.”

Ebanx works with merchants in Mexico, including Chinese fast fashion retailer SHEIN, Singapore’s Shopee and U.S. eCommerce platform Wish. Del Valle told Reuters that the company is looking to scale services so that international companies can enter the Mexican market.

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There was chatter that Ebanx could be on the cusp of an initial public offering (IPO) this month, as the company already has started preparations.

“One thing we learned is that you cannot wait until it’s time to get prepared,” del Valle said. “So we have the whole company audited, accounting, everything in shape, all the governance. When we think it’s the right time, either because of external or internal effects or any decision, we’re going to be ready, so that may happen this year or next year.”