The next chapter in Mexico’s fintech regulation: What businesses need to know

The Law to Regulate Financial Technology Institutions, known as the Fintech Law, positioned Mexico as a pioneer in Latin America by establishing a legal framework for fintech companies in 2018. However, seven years later, the sector has evolved significantly, and the current legislation is showing signs of falling behind the new market dynamics. In this context, the need arises for a “Fintech Law 2.0” that addresses today’s challenges and promotes a more competitive and inclusive ecosystem.

Why is an update necessary?

Since the enactment of the Fintech Law, Mexico’s financial ecosystem has experienced exponential growth. Companies such as Nu, Mercado Pago, and Stori have expanded their operations, offering a broader range of digital financial services. This growth has revealed limitations in the current legislation, particularly in areas such as:

• Competition in the card payment network:
  There are ongoing concerns about monopolistic practices in card payment clearinghouses, which restrict competition and raise costs for consumers.
  
  
• Integration of new technological players:
  The emergence of innovative business models—such as open finance platforms and blockchain-based solutions—requires a regulatory framework that allows for their inclusion and proper oversight.
  
  
• Establishment of an open finance system:
  Implementing a system that enables the secure and efficient exchange of financial data among institutions is essential to fostering innovation and improving user experience.
  
  

Romina Benvenuti, General Counsel at Nu Mexico, emphasizes the importance of having regulation that evolves with the sector, enabling the entry of new business models and encouraging innovation within a secure and regulated environment.

Industry perspectives and international recommendations

Leading fintech companies in Mexico agree on the need for updated legislation that reflects the sector’s maturity and diversity. Ramiro Nández, Commercial Director at Mercado Pago, points out that although Mexico was a pioneer in fintech regulation, other countries in the region have moved faster in implementing open finance systems, which has allowed them to offer more competitive products and foster financial inclusion.

For its part, the Inter-American Development Bank (IDB) has emphasized the importance of integrating new players and improving regulation to advance open finance in Latin America. The IDB recommends strengthening institutional capacity and developing regulatory frameworks that enable the benefits of open finance—such as broader financial inclusion and better-quality services for consumers—to be fully realized.

Implications for businesses

For companies operating in Mexico’s financial sector, anticipating regulatory changes is crucial. A Fintech Law 2.0 could imply:

• Review of business models:
  Companies will need to assess how their operations align with the new provisions, particularly regarding consumer protection and competition.
  
  
• Technological adaptation:
  Implementing systems that support interoperability and the secure exchange of data will be essential to meet open finance standards.
  
  
• Collaboration with regulators:
  Establishing effective communication channels with authorities will allow for a smoother transition and better understanding of regulatory expectations.
  
  

The shift toward a Fintech Law 2.0 represents an opportunity to strengthen Mexico’s financial ecosystem by promoting innovation, competition, and financial inclusion. Companies that proactively prepare for these changes will be better positioned to seize the opportunities emerging in this new regulatory environment.