Nu Mexico says its deal with Felix Pago will revolutionise the cross-border money transfer process for US residents sending money to relatives in Mexico and for business transactions.
General Manager of Nu Mexico, Iván Canales says its latest offering strengthens the country’s position “as the second largest recipient of money from abroad worldwide”.
Nubank: Fuelling a flourishing Mexican market
Indeed, Nu Mexico’s latest announcement comes after the launch of its multi-product platform and request to transform its Sofipo licence into a Multiple Banking Institution licence.
Should this be successful, Nu Mexico will be able to fulfill business customer expectations of "bringing their payroll to Nu", according to Canales.
This will enable it to offer new financial services to businesses, potentially helping many SMEs tap into WhatsApp-enabled cross-border transactions between Mexico and the US, supporting trade relationships between the neighbouring American countries. Mexico is now the number one importer into the US following trade breakdowns between the US and China.
For now, though, the partnership between Nubank and Felix Pago “demonstrates the commitment [both] have to [their] customers, Latinos in the US and their families back home in Mexico”, says Felix Pago CEO and Co-Founder Manuel Godoy.
He adds: “At Felix, we continue to work on making remittances as easy, fast and convenient as it can possibly be. Part of making it easier is helping more and more Latinos use digital channels to make these cross-border transactions instead of using cash, with Nu we are making this happen.”
WhatsApp payments: How does it work?
Nubank customers in Mexico can begin their cross-border transactions by sending a money request link within the Nu app – which comes pre-loaded with bank details – to US residents via WhatsApp.
Then, US recipients can directly interact with a Felix Pago chatbot in WhatsApp, eliminating the need to download any additional applications.
Once an amount is agreed upon, Felix Pago completes the money transfer, with funds arriving in real-time and in Mexican pesos.
Recipients of money transfers will be given additional options to put a portion (15%) of funds received into a money box – promoting savings goals for Nubank’s Mexican customers.
Canales adds: “Offering the functionality of receiving money in Cuenta Nu (Nu Account), now from the United States and in alliance with Felix Pago, is one more step towards our purpose of financially empowering people in Mexico.”