Background on Tapi and the Collection Challenge in Mexico
In Mexico, collecting payments remains both an operational and structural challenge. Although the country has made strides in digitalizing payments, most businesses—especially non-bank financial institutions, insurance companies, and educational institutions—face slow, expensive, and fragmented collection processes. Tapi, a payment technology company, aims to address this issue through an integrated digital and physical collection infrastructure.
The Extent of Cash Transactions in Mexico
According to INEGI, 85% of transactions under 500 pesos are still conducted in cash. This highlights the need for a more efficient collection system.
Tapi’s Solution: Tapipay Platform
Tapi’s new platform, Tapipay, aims to automate collection processes for businesses of any size. It connects various payment methods and reduces operational costs, as stated by the company.
Leveraging Arcus Acquisition for Expanded Reach
Tapi’s project is built on the network it established after acquiring Arcus, a Mastercard portfolio company with connections to banks and physical payment points across Mexico. This integration expanded Tapi’s reach to over 15 banks and fintech companies, 50,000 physical collection points, and a potential coverage of 70 million people.
Benefits for Credit Providers and Increased Access to Credit
Tomás Mindlin, Tapi’s co-founder and CEO, explains that helping businesses collect payments benefits credit providers first. When businesses collect better, there is more access to credit for everyone.
Simplifying Collection Processes
Tapipay simplifies a task previously requiring multiple platforms and tools. Businesses can upload their payment references, even from a spreadsheet, and the system automatically sends reminders and payment links via various contact channels.
Addressing Small Business Needs
Mindlin points out that many small businesses lack large operations teams to manage numerous collections. Tapipay addresses this by streamlining the process.
Tapi’s Collection Network: Digital and Physical Channels
Tapipay’s network encompasses both digital channels and physical collection points, including bank branches, convenience stores, and pharmacies where users can make cash payments.
Arcus Acquisition: A Turning Point for Tapi
The acquisition of Arcus was a pivotal moment for Tapi. Even before the acquisition, Tapi sought ways to expand digital collection access through bank networks. With Arcus’ integration, the process accelerated, allowing Tapipay to scale rapidly.
Democratizing Collection Access
Prior to the acquisition, only large corporations could collect from bank apps. Tapi democratized this access for medium and small businesses.
About Tapi
Founded in 2022 by Argentine entrepreneurs, Tapi currently operates in Argentina, Mexico, Chile, Colombia, and Peru. Its model aims to function as a common infrastructure connecting banks, fintech companies, businesses, and users, reducing payment friction for services, top-ups, or cash deposits.
Key Questions and Answers
- What is the main challenge Tapi aims to address in Mexico? Tapi tackles slow, expensive, and fragmented collection processes faced by businesses in Mexico.
- How does Tapipay simplify the collection process? Tapipay automates collection processes, connects various payment methods, and reduces operational costs for businesses.
- What role does the Arcus acquisition play in Tapi’s success? The Arcus acquisition expanded Tapi’s reach to more banks, fintech companies, and physical collection points, enabling better access to digital collections for medium and small businesses.
- Who benefits from Tapi’s efforts to improve collection processes? Credit providers are the primary beneficiaries, as better collections lead to increased access to credit for everyone.
- What makes Tapi’s model unique? Tapi’s model functions as a common infrastructure connecting banks, fintech companies, businesses, and users, reducing payment friction for various services.
