Belvo Granted IFPE License for Payments in Mexico

Open finance application programming interface (API) startup Belvo has received an Institution of Electronic Payment Funds (IFPE) license enabling it to develop payment initiation solutions in Mexico.

The authorization for the license from the National Banking and Securities Commission (CNBV) gives Belvo the ability to offer its clients in Mexico bank-to-bank payment processing and issuing capabilities, according to a Thursday (June 30) press release.

Headquartered in Mexico City, Mexico, and founded in 2019 by co-CEOs Pablo Viguera and Oriol Tintoré, Belvo is using technology and data to develop the infrastructures needed to connect users, businesses and financial data in Latin America.

See also: How Demand for Digital and Contactless Payments Is Growing Across Latin America

Belvo will develop use cases surrounding different payment solutions that are not only in high demand in the market but also in compliance with the provisions of Mexico’s FinTech Law.

“Receiving this endorsement from the regulator puts us closer to offering payment initiation solutions in Latin America,” Viguera said. “There’s a huge potential in the region to make payment rails more efficient, in a similar way to what open banking regulation has allowed in Europe. And this is a key step to materialize our vision of offering a complete platform of open finance solutions, ranging from financial data access and enrichment to payment initiation.”

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Belvo is working on receiving similar authorization in Brazil, called ITP, which would grant it the ability to operate as an initiator of payment transactions.

Alejandro Servín, general manager of Belvo in Mexico, said Belvo is among the few companies to receive authorization in Mexico, and it’s “fully committed to promoting Open Finance models and complying with the rules established by the regulators.”

See also: Brazil’s Bold Steps Toward Digital Payments Adoption