The IFPE license, under the Fintech Law in Mexico, will allow Belvo to develop its payment initiation solutions in the country – the company is also applying for a similar license to develop payment initiation solutions in Brazil.
Belvo, the leading Open Finance API platform in Latin America, has received authorization from the National Banking and Securities Commission (CNBV) for the organization and operation of an Institución de Fondos de Pago Electrónico (IFPE).
Through this license, Belvo will be able to offer its clients in Mexico services to process and issue bank-to-bank payments through its API platform. The company has been working on this project for more than a year and has now received regulatory approval.
The use cases that Belvo plans to develop include different payment solutions that are in high demand in the market. All in compliance with the provisions of the Mexican Fintech Law and in line with the plan approved by the regulator.
“Receiving this endorsement from the regulator puts us closer to offering payment initiation solutions in Latin America. There’s a huge potential in the region to make payment rails more efficient, in a similar way to what Open Banking regulation has allowed in Europe. And this is a key step to materialize our vision of offering a complete platform of Open Finance solutions, ranging from financial data access and enrichment to payment initiation,” said Pablo Viguera, co-CEO and co-founder of Belvo.
Alejandro Servín, General Manager of Belvo in Mexico, added: “We are very proud of our team’s work to achieve this authorization, which very few entities have received so far in the country. At Belvo, we are fully committed to promoting Open Finance models and complying with the rules established by the regulators. This new step reinforces our position in the fintech sector and our firm commitment to our operations in the country”.
Belvo is in the process of receiving a similar authorization in Brazil, called ITP, which would allow the entity to operate as an initiator of payment transactions within the Open Banking framework regulated in the country.