Card payment ‘monopoly’ hobbles Mexico startups, study says

Fintech companies operating in Mexico are calling on regulators to breakup the monopoly held by the credit card payments network that benefits big banks. — REUTERS

Mexican regulators need to break up an effective monopoly in the country’s credit card payments network that is benefiting big banks and hobbling startups in Mexico, said a new study commissioned by a group of financial technology firms.

While regulators across Latin America have helped financial startups gain ground, Mexico is letting the country’s largest banks set the rules, according to a copy of the study seen by Bloomberg News. The 71-page report sponsored by Fintech Mexico was prepared by a consultancy led by former trade chief and NAFTA negotiator Luis de la Calle.