Belvo Launches New Open Finance Product in Mexico

Published 6 months ago

Latin America’s leading open finance platform, Belvo, has announced the release of a new product that will facilitate recurring charges via bank domiciliation to any account for businesses in Mexico.

The Product

Belvo’s Bank Domiciliation will allow companies to offer payment experiences where users connect their bank account and approve automatic and/or recurring orders. This is for the payment of products and services within seconds and without leaving their application. Some of the most demanded use cases in the market for this product are subscription payments and service receipts, as well as credit collection and funding of digital wallets.

The Solution Context

According to the latest report on financial market infrastructures from the Bank of Mexico (2021), from 2015 to 2021, the volume of electronic transactions linked to domiciliation experienced an average annual growth of 10.3%. From 2020 to 2021, it grew by 11.2%, reaching nearly 140 million domiciliations in the country.

“Bank domiciliation in Mexico presents significant challenges, especially in automation and user experience. In many cases, the consumer has to physically go to their bank or share physical documents to carry out and authorize these transactions. With Belvo’s Bank Domiciliation, users will be able to perform these movements from their applications, in a safe and transparent way,” said Federica Gregorini, General Manager of Belvo in Mexico.

In addition to these benefits, thanks to its open finance data infrastructure, “this product can help reduce fraud, increase conversion, and decrease the costs of this payment method, making the movement of money between bank accounts simpler and safer, something essential for companies in Mexico,” added Federica Gregorini.