Tapi secures USD 22 million to support its expansion in Mexico

The funding will support Tapi's efforts to collaborate with leading fintech firms, enhance financial inclusion, and promote the shift from cash to digital payments in Mexico according to Bloomberg News. At the time of writing, Tapi manages payments for major Latin American platforms such as Mercado Pago and Lemon. The company anticipates processing approximately USD 400 million in payments across five countries this year, marking a significant increase from previous figures. 

The name 'Tapi' reflects the fusion of a previous venture, a digital wallet called TAP, with API (application programming interface), underlining the company's technological foundation. With a workforce primarily based in Argentina, Tapi expects substantial growth in transaction volumes following the recent funding round. 

Company officials cited by fxleaders.com expect that within a year, Tapi's infrastructure could potentially serve 80% of Mexico's banked population, with a fivefold increase in total payment volume to 10 million transactions per month by year-end.

Digital payments in Mexico 

In Mexico, digital shopping trends reveal a notable gap between consumer demand for enhanced digital features and current market offerings. Despite nearly half of Mexican consumers preferring in-store shopping experiences, there is significant interest in digital enhancements that are not currently widely available. 

According to Statista, digital payments in Mexico consist of credit cards in ecommerce but are especially characterised by lack of digital transactions within physical stores. Mexico's share of cash ranks among the highest when compared to other countries in the Americas.  

An important reason for this is the country's largely unbanked population, with more than half of the country not having access to a bank account. Digital payment methods are used when shopping outside the country, though. More than half of Mexican online shoppers said they used PayPal over both debit and credit cards in cross-border ecommerce.