AT&T México enters the fintelco market

AT&T México, the second biggest mobile operator in the country, is the latest player to join the group of telcos in Latin America that launched a financial service in partnership with banks or fintechs. 

The operator launched this week an e-wallet, dubbed AT&T ReMo, that allows its users to make online transactions, request a loan and even withdraw cash at convenience stores and ATMs, regardless of their phone service carrier. 

But AT&T emphasizes on the digital wallet’s website that it has not turned into a bank or financial services provider. Instead, the operator has joined forces with Mexican fintech Broxel, which is the tool’s financial and technical operator. 

ReMo charges 150 pesos for account activation, which includes a personalized chip card for physical transactions. A normal bank account is not required to activate the wallet and there are no annual fees. 

Telcos such as Millicom’s Tigo and Brazil’s TIM are increasingly turning into fintelcos to diversify their revenue streams and build customer loyalty.

The moves are also part of a regional trend toward the digitization of bank services following the spread of the coronavirus pandemic.