GlobalData
2 min read
Argentina-based payments startup tapi has acquired the bill payment and cash-handling operations of Arcus, a Mastercard company, in Mexico.
The financial details of the transaction have not been disclosed.
Arcus provides support for bill payment and cash-in, cash-out services for billers, retailers, fintechs, and traditional financial institutions in both the US and Mexico.
Its primary offering, the Arcus Pay Network, reportedly connects directly with major billers and some of Mexico’s largest retail chains.
The platform was authorised to handle payment processing, settlement, and reconciliation through Mexico’s real-time Interbank Electronic Payment System (SPEI).
Through this acquisition, tapi gains access to an extensive network of cash-in and cash-out points, including major retailers like OXXO and 7-Eleven, while also broadening its connections with billers nationwide, according to the company.
tapi CEO Tomas Mindlin, confirmed that the operation was an all-cash transaction.
The company plans to utilise part of the $32m it has raised in total, along with profits generated over the past three years, to fund the acquisition.
The startup anticipates that this expansion will enable it to process over 270 million transactions in Latin America by the end of this year, amounting to a total payment volume of $5.5bn.
Mastercard, which acquired Arcus in 2021, will retain the brand as well as the payment processing and reconciliation technologies through Mexico’s real-time interbank network, SPEI.
In an interview to Bloomberg, Mindlin said: “We believe it will be an investment that will pay off very quickly, both in terms of current cash flow, the full scope of what Tapi and Arcus can do together, and the growth of the fintech industry in the region.”
“However, we are not here to make profits in the short-term, but rather to drive the development of the sector in Latin America, especially in Mexico.”
tapi collaborates with banks and fintechs to process recurring payments, cash transactions, and other payment types through a single integration.
"tapi buys Mastercard’s Arcus operations in Mexico " was originally created and published by Electronic Payments International, a GlobalData owned brand.
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