Argentine fintech Tapi has acquired the bill payment and cash-handling operations of Mastercard’s Arcus in Mexico to strengthen its presence in Latin America’s second-largest economy.

Tapi, which serves clients like Mercado Pago, DollarApp, and Stori, specializes in recurring payments and cash transactions for banks and fintechs.

The deal gives Tapi access to a wide network of cash-in and cash-out points, including OXXO and 7-Eleven, and improves its connectivity to billers across Mexico.

CEO Tomas Mindlin confirmed it was an all-cash transaction, funded partly by US$32 million in capital and company profits.

Though financial terms weren’t disclosed, Tapi expects to process over 270 million transactions in Latin America by year-end, totaling US$5.5 billion.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Latin America’s payment landscape shifts as cash gradually gives way

Tapi’s strategic acquisition of Mastercard’s Arcus reflects a broader transition happening across Latin America, where cash transactions have dropped significantly from 67% in 2014 to just 25% in 2024 1.

This hybrid approach acknowledges the reality that despite rapid digital adoption, cash access remains critical in Mexico where approximately 90% of transactions are still conducted in cash 2.

The acquisition gives Tapi access to extensive cash-in and cash-out networks like OXXO and 7-Eleven, positioning it to serve both digitally-connected consumers and the significant unbanked population.

Industry projections suggest cash usage could fall below 17% by 2030, with digital payments expected to capture two-thirds of e-commerce value and nearly half of point-of-sale transactions 1.

This transition is being accelerated by government initiatives, rising mobile adoption, and fintech innovations that are collectively reshaping how money moves through Latin America’s economies.

2️⃣ Mexico emerges as a fintech consolidation hotspot amid ecosystem maturation

Tapi’s acquisition aligns with Mexico’s fintech sector evolution from rapid expansion to a more strategic “scale-up” phase, with the country now hosting 1,004 fintech providers, including 803 local companies 3.

This consolidation trend is happening as Mexico’s fintech revenues grew by 31% last year despite the number of new startups stabilizing, indicating a shift toward profitability and strategic growth rather than market entry 3.