Background on Cobre and its Relevance
Cobre, a Colombian fintech company, has positioned itself as a key player in the Mexican market for international business payments. With 80% of its processed money in Mexico coming from cross-border corporate payments, Cobre has become a significant force in this sector.
Mexico’s Growing Importance in International Payments
Mexico ranks second in Latin America for the volume of international corporate payments, just behind Brazil. Currently, over 300 companies in Mexico and Colombia frequently conduct international transactions through Cobre, with the United States being the primary destination, accounting for 45% of transactions.
Cobre’s New API for International Payments
In response to this growing demand, Cobre has launched an Application Programming Interface (API) specifically designed for international business payments. This solution caters to companies with high transaction volumes, multiple foreign counterparties, or critical payment cycles.
José Gedeón, Cobre’s CEO, explained that this tool enables organizations to automate real-time transfers directly into their financial systems without time or manual intervention constraints.
Cobre’s Commitment to the Mexican Market
Despite challenges in the current economic and political environment, Cobre remains committed to Mexico as a strategic market. Gedeón emphasized that the company views Mexico as a crucial pillar for its operations over the next four to five years.
Cobre’s Strategic Expansion and Investment
Cobre has secured a Series B investment round worth $35 million, primarily intended to accelerate its growth in the Mexican market.
To streamline operations, Cobre has developed technological infrastructure in collaboration with local banks and holds a money transmitter license, simplifying international payment and collection processes.
“For instance, in China, we partner with financial institutions in South Korea and China capable of processing local currency payments. This service is highly valued as it drastically reduces payment times and mitigates risks associated with currency fluctuations,” explained José Gedeón.
Key Questions and Answers
- What is Cobre and why is it relevant? Cobre is a Colombian fintech company that has become significant in the Mexican market for international business payments, processing 80% of its money in Mexico from such transactions.
- Why is Mexico important for Cobre? Mexico ranks second in Latin America for the volume of international corporate payments, and Cobre sees it as a strategic market for its operations in the next four to five years.
- What is Cobre’s new API for? The new API is designed specifically for international business payments, catering to companies with high transaction volumes, multiple foreign counterparties, or critical payment cycles.
- How does Cobre’s API benefit companies? The API enables organizations to automate real-time transfers directly into their financial systems without time or manual intervention constraints.
- What is Cobre’s strategy for expansion in Mexico? Cobre has secured a $35 million Series B investment round to accelerate its growth in the Mexican market. They have developed technological infrastructure with local banks and hold a money transmitter license to simplify international payment processes.
- How does Cobre address currency fluctuation risks? Cobre partners with financial institutions in countries like China and South Korea to process local currency payments, reducing payment times and mitigating risks associated with currency fluctuations.
