Fondeadora brings Apple Pay to its customers in Mexico through an industry-first collaboration with Paymentology.
The Mexico City-headquartered financial technology company Fondeadora is leveraging Paymentology technology to implement Apple Pay capabilities throughout its financial service offerings in Mexico.
The agreement will see the Mexican fintech integrate Apple Pay into its mobile wallet and payment processing system, while Paymentology, a payment processing company that specialises in digital payments, including mobile payments, will provide the underlying digital payment platform to support the move.
As a result of this arrangement, Fondeadora will be able to offer a secure and convenient mobile payment solution for its Mexican consumers through Apple Pay.
By doing so, the fintech can offer faster transaction processing, appropriate security measures and data analytics, while the feature enables cardholders to make payments online or in-store with participating merchants who accept the payment method.
With this, Fondeadora has become one of the first financial institutions to bring Apple Pay to Mexico.
Reflecting on this achievement, the company’s general manager, Jorge Fernández, comments: “Without the help of our issuer-processor partner, Paymentology, we wouldn’t have been able to launch such a service.”
“We look forward to our continued relationship with the team at Paymentology and creating more industry milestones,” he adds.
Mexican payment system development
Fondeadora’s advances into the Mexican payment market through the application of digital wallets like Apple Pay are significant for several reasons; chief among these being its adherence to the country’s ‘fintech law’.
Mexico became one of the first countries in Latin America (LatAm) to promote the purpose of fintech when it introduced its ‘Ley para Regular las Instituciones de Tecnología Financiera’ reform, or ‘fintech law’ as it’s recognised colloquially, back in March 2018.
In a nutshell, the law aims to promote “financial inclusion, provide legal security to its users, create greater competition for the financial sector, preserve financial stability and prevent money laundering,” as Carlos Torres, a lawyer at the Mexican law firm YGConsultores, told The Fintech Times.
A big part of achieving this financial inclusion and legal security is through the use of digital wallets, with anticipation that at least half of the Mexican population will have adopted their use by 2025.
In terms of its scale, Fondeadora’s service will allow wallet users to make digital payments in other parts of LatAm, including Peru, Brazil and Argentina, thus establishing a stronger fintech network within the region.
The Mexican fintech reform also outlines strong measures to combat financial crime and particularly money laundering. Apple Pay’s use of biometrics security technology, therefore, makes it an appropriate addition to the country’s payment suite.
Alejandro Del Rio, Paymentology’s regional director for LatAm, describes how the post-covid digital economy in Mexico has “flourished and with it has come newfound consumer demands around digital ways to pay.”
“Our payment technology and Fondeadora’s understanding of the needs of Mexican customers have made us the perfect partners to lead the charge of the rapidly transforming financial services industry in LatAm,” he adds.