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The board of market intelligence firm Mercom Capital announced it will invest 600,000 British pounds (US$737,214) for a 16% interest in newly established Mexican fintech company Mobile Wireless and Satellite SAPI (Mowisat).
Mowisat aims to be the first provider of fintech solutions for unbanked communities in Mexico, and it plans to do so as an MVNO. The company will rely on a distribution network with over 25,000 outlets to reach approximately 40mn people in rural areas, as well as the outskirts of every major city in Mexico, Mercom Capital said in statement to the market.
Mowisat's will use its technology to become a financial services one-stop-shop, covering micro credit, debit/credit cards, payment systems, affordable remittances, e-commerce, and payment platforms.
"This investment in Mowisat is the first we have made since shareholders approved the change to our investing policy to include financial services and financial services technology. We believe the market in Mexico will be very receptive to the introduction of fintech solutions over an MVNO model," said John Zorbas, CEO of Mercom.
Mowisat plans to begin deploying its financial services offering in the first quarter of next year, and will gradually launch services in rural areas of other Latin American countries.
Mercom Capital said the deployment will be in collaboration with one of Mexico's leading banks which offers online banking services and has the resources to handle over 50mn online bank accounts. The statement did not reveal of the name of the bank.