Brazilian Fintech company Dock has informed that it has bought out Mexican card company Cacao Paycard Solutions SA de CV.
As per Bloomberg news, the Visa-backed Fintech company, which provides infrastructure for Latin America’s Financial technology, has purchased the Mexico City-based company, a card-processing solution for an undisclosed sum.
Dock, the Sao Paulo-based company, uses its cloud platform to provide services to more than 40 million active accounts. It will get 50 Cacao clients from this acquisition, including Mexican Fintech firm Albo and Unicorn start-up payment firm Clip.
The possibilities for expansion in Mexico are vast as only less than half of the country’s 130 million people have bank accounts. The potential market for digital banking in the country is $ 2.9 billion and is expected to grow by 34 % in the next five years, as per a report from consultants, Americas Market Intelligence. Despite the potential, few service providers are offering the infrastructure in the digital banking and payments segment, according to Antonio Soares, the Chief executive Officer of Docks.
Earlier known as Conductor Technology, Dock plans to use its brand in Mexico. It is known to process $ 59 billion approximately in payments across entire Latin America annually.
According to Soars, both Dock and Cacao share values and core mission significantly to provide access to millions of underbanked and unbanked people, financial systems through technology in Latin America.
Dock received $170 million funds from investors like Viking Global Investors, Singapore-based Temasek, Sunley House Capital, an affiliate of Advent International affiliate. Visa and Riverwood Capital were early investors.
Cacao is the first acquisition of Dock outside Brazil. Dock also acquired two other companies, Muxi, which it purchased last year. Muxi provides technology for capturing transactions. In October this year, Dock had acquired BPP Instituicao de Pagamento SA, whose core expertise is to give non-banks who want to offer their customers, banking services.
