Mexico is the fastest-growing e-commerce market in the world, according to a 2020 study by Pattern, a leading e-commerce consultancy firm. Despite 35% growth year-over-year, however, credit cards and banking are scarce in the United States’ southern neighbor – and only 37% of those over 15 have a bank account.
Stori Hoping to Serve Mexico’s Underbanked Middle Class
Mexico City-based fintech startup Stori hopes to reverse this trend by working on ways to underwrite credit cards to underserved populations throughout Mexico. This goal is now a step closer to completion, thanks to $32.5 million in Series B funding – and a previous $50 million in funding since 2018.
Stori’s goal is to become “Mexico’s leading credit card issuer for the rising middle class.” It features a diverse range of team members with prior experience at Mastercard, Capital One, HSBC, Morgan Stanley, and more.
Stori Clásica Mastercard
Over one million Mexicans have applied for Stori’s credit card – the Stori Clásica Mastercard – since launch, with growth up 14% in January 2021 alone. The company also provides a 100% mobile app-based experience designed to attract Mexico’s growing middle class.
“Consumers in Mexico are increasingly using e-commerce and app-based services like ride-hailing and delivery, and credit cards are the preferred payment methods in those channels,” Bin Chen, one of the founders, said in an interview with TechCrunch. “They’re experiencing more cash flow fluctuation and irregular expenses and need access to flexible credit that can meet short-term needs.”
Similarities with TomoCredit
The company is like another startup, TomoCredit, in the United States. The TomoCredit Card hopes to create a solution for other foreign-born individuals and young adults facing challenges getting approved for credit cards, loans, or other lending products.
That card, designed for recent immigrants and those new to credit, recently raised over $7 million in funding, from names including BAM Ventures, Passport Capital, Ulu Strong Ventures, and Barclays Bank.
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