Background on Tapi and its Relevance
Tapi, an Argentine financial technology company founded in 2022 by three entrepreneurs, has been making significant strides in the Latin American fintech landscape. The company offers a technological integration through an application programming interface (API) that enables banks and fintechs to process recurring payments, cash transactions, mobile recharges, and gift cards.
The Acquisition Details
Tapi announced the acquisition of four business units from Arcus, a Mastercard fintech authorized as an Electronic Payment Funds Institution (IFPE) since 2023, under the Law for the Regulation of Financial Technology Institutions.
The acquisition includes areas such as utility payments, mobile top-ups, gift cards, and functionalities that allow users to deposit (Cash In) or withdraw (Cash Out) cash from their digital accounts through physical establishments or strategic partners.
Strategic Expansion in Mexico
According to Tapi, this acquisition is part of a broader strategy to strengthen its presence in Mexico and establish itself as the preferred partner for payment solutions for banks, fintechs, retailers, and service companies across the region. Currently, Tapi has a payment network in several Latin American countries.
“This integration expands our reach in Mexico, serving major fintechs and banks in the country and significantly increasing our physical footprint with thousands of Cash In/Out points, as well as connections with key market service providers,” said Tomás Mindlin, Tapi’s CEO and co-founder.
Expanding Cash In/Out Network
With this acquisition, Tapi’s Cash In/Out network continues to grow in Mexico, providing direct access to leading retail companies through strategic alliances with OXXO, Chedraui, Finabien, 7-Eleven, SYStienda, among others.
Mastercard’s Continued Involvement
Mastercard will retain the Arcus brand and its capabilities for enabling payment, settlement, and reconciliation processes through Mexico’s Real-Time Payment System (SPEI).
“With Arcus, we will operate an even more comprehensive payment network in Mexico and connect digital and physical economies at scale,” stated Kevin Litvin, Tapi’s co-founder.
Funding and Future Projections
In 2024, Tapi closed a Series A funding round of $22 million, led by Kaszek. This investment, combined with a previous seed round of $9 million, has accelerated the company’s expansion in Latin America. By 2025, Tapi aims to surpass $2 billion in annual transaction volume, five times its volume from the previous year.
Key Questions and Answers
- Who is Tapi? Tapi is an Argentine financial technology company founded in 2022 by three entrepreneurs, offering a technological integration through an API for banks and fintechs to process various payment types.
- What business units did Tapi acquire from Mastercard’s Arcus? Tapi acquired areas related to utility payments, mobile top-ups, gift cards, and functionalities allowing users to deposit or withdraw cash from digital accounts through physical establishments or strategic partners.
- Why is this acquisition significant for Tapi? The acquisition strengthens Tapi’s presence in Mexico, expands its physical footprint, and provides direct access to leading retail companies, accelerating its growth in Latin America.
- How will Mastercard continue to be involved? Mastercard will retain the Arcus brand and its capabilities for enabling payment, settlement, and reconciliation processes through Mexico’s Real-Time Payment System (SPEI).
- What are Tapi’s future projections? By 2025, Tapi aims to surpass $2 billion in annual transaction volume, five times its volume from the previous year.
