Chilean FinTech startup Fintoc, which specialises in instant payments via APIs, has successfully raised $7m in a Series A funding round.
The investment is earmarked for consolidating Fintoc’s foothold in its native Chile and in Mexico, where the company launched operations last year, according to a report from TechCrunch.
The $7m in funding was led by Propel, a U.S.-based fund, with contributions from Monashees, a Brazilian fund with an active interest in Mexico.
Fintoc offers an API that enables online businesses to accept payments directly from customers’ bank accounts, a method known as accounts to accounts (A2A). This technology provides an economical alternative to traditional credit card transactions by reducing the number of intermediaries and lowering commission costs for businesses.
The new funding will primarily be used to expand Fintoc’s presence in Mexico, a key market that the company believes will drive its revenue growth over the next two years. The strategic focus on Mexico comes as Fintoc aims to leverage the relatively low rate of financial inclusion in the country to capture a significant market share.
Fintoc CEO Cristóbal Griffero emphasised the importance of being proactive in the market: “If we are there right before this boom, we’ll be able to grow with the market.”
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