Miranda’s Weekly Mex FinTech Monitor
September 18, 2023
Mexico FinTech News
A probe by the Mexican antitrust authority found competitive restraints in the card payments industry
A report from Mexico’s antitrust authority COFECE found that interchange fees in Mexico average 1.36%, six times higher than in Europe, where they hover around 0.2%. Principally, COFECE reported a lack of competition in clearing services as the market is dominated by Prosa and E-Global and signaled that current regulation favors the status quo because it allows existing clearing houses to define fees and establish the operating rules. Moreover, the clearing houses are owned by various incumbent banks in Mexico. As a next step, the regulator urged the Bank of Mexico and the National Banking and Securities Commission (CNBV) to foster competition and modify how interchange fees are set.
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