ACI Worldwide and Mexipay Extend Partnership to Boost Instant Payments Adoption in Mexico

Rhea-AI Summary

ACI Worldwide (NASDAQ:ACIW) and Mexipay have extended their partnership to enhance Mexico's real-time payments ecosystem. Mexipay will use ACI's Digital Central Infrastructure solution to enable new payment options, built on the ISO 20022 standard. The platform will offer features like Request to Pay and Alias management, creating new revenue streams. In 2023, Mexico processed 3.8 billion real-time payments, ranking 10th globally. However, its projected CAGR of 7.8% between 2023-2028 is among the slowest in Latin America. ACI powers 26 real-time payment schemes globally, covering about one-third of countries offering such services and reaching approximately 3 billion people.

Positive

• Extension of partnership with Mexipay to enhance Mexico's real-time payments ecosystem
• Implementation of ACI's Digital Central Infrastructure solution for new payment options
• Addition of features like Request to Pay and Alias management, creating new revenue streams
• Mexico ranked 10th globally in real-time payments processing with 3.8 billion transactions in 2023
• ACI powers 26 real-time payment schemes globally, reaching approximately 3 billion people

Negative

• Mexico's projected CAGR of 7.8% for real-time payments between 2023-2028 is among the slowest in Latin America

Insights

Financial Technology Expert

This partnership extension between ACI Worldwide and Mexipay marks a significant step in Mexico's journey towards a more robust real-time payments ecosystem. The implementation of ACI's Digital Central Infrastructure solution, built on the ISO 20022 standard, promises to enhance payment options and potentially accelerate adoption rates. However, it's important to note that Mexico's real-time payments market, despite being the 10th largest globally, is growing at a relatively slow 7.8% CAGR. This partnership aims to address this challenge by introducing features like Request to Pay and Alias management, which could create new revenue streams for participants. For investors, this collaboration represents a strategic move by ACI to strengthen its position in the Latin American market, potentially driving long-term growth in a region with significant untapped potential.

Market Research Analyst

The extension of this partnership is a strategic move in a market ripe for growth. With only 3.8 billion real-time payments processed in Mexico in 2023, there's substantial room for expansion. The slow growth rate (7.8% CAGR) compared to other Latin American countries suggests untapped potential. This partnership could be a catalyst for accelerated adoption, potentially boosting transaction volumes and market penetration. For ACI Worldwide, already powering 26 real-time payment schemes globally, this reinforces their market position and could lead to increased revenue streams. However, investors should be cautious: success depends on overcoming adoption barriers and competing with established payment methods. The partnership's ability to drive financial inclusion and economic growth will be key performance indicators to watch in the coming years.

Payments Industry Analyst

This partnership extension is a strategic play in the evolving landscape of real-time payments. ACI's Digital Central Infrastructure solution, leveraging the ISO 20022 standard, positions Mexico to potentially leapfrog in terms of payment technology. The introduction of features like Request to Pay could drive innovation in financial services, benefiting both businesses and consumers. However, the 7.8% CAGR projection for Mexico's real-time payments market is concerning, especially when compared to more dynamic markets in Latin America. This slow growth rate suggests underlying challenges in adoption or infrastructure that need to be addressed. For ACI Worldwide, this partnership reinforces their global presence, now covering about one-third of countries offering real-time payment services. Investors should monitor how effectively this partnership can accelerate market growth and whether it can significantly impact ACI's revenue in the region.

Mexican financial technology company Mexipay will leverage ACI’s Digital Central Infrastructure solution to enable new payment options in Mexico

OMAHA, Neb. & MEXICO CITY--(BUSINESS WIRE)-- ACI Worldwide (NASDAQ:ACIW), an original innovator in global payments technology, and Mexipay, a leading Mexican financial technology company, have announced the extension of their partnership to enhance Mexico’s real-time payments ecosystem, with the aim of driving instant payments adoption and boosting economic growth and financial inclusion for Mexico’s businesses and consumers.

Mexipay will utilize ACI’s Digital Central Infrastructure solution, part of the award-winning ACI Enterprise Payments Platform, to address the need for enhanced real-time payment services. The platform will be built on the global ISO 20022 standard and will offer additional features such as Request to Pay and Alias management, providing participants with opportunities for new payments and revenue streams.

According to ACI’s latest Prime Time for Real-Time report, 3.8 billion real-time payments were processed in Mexico in 2023, making it the 10^th largest real-time payments market in the world. But despite its head start in the region, the country is one of the slowest-growing real-time markets in Latin America, with a projected CAGR of 7.8% between 2023 and 2028.

“We are excited to extend our partnership with Mexipay to bring the benefits of real-time payments to the Mexican economy,” said Alberto Olivares, head of Latin America, ACI Worldwide. “Latin America is one of the most exciting growth regions for our company. Partnering with fintechs and new market entrants is crucial to drive the advancement of real-time payment ecosystems. Mexico has a fantastic opportunity to maximize the use of its real-time rails and replicate the success of other countries in the region to drive economic growth and financial inclusion.”

“We are proud to be partnering with ACI Worldwide, the global leader in real-time payments technology and software,” said Fabian Uribe, co-founder and CEO of Mexipay. “This is a transformational partnership that will optimize Mexipay’s technological and market penetration capabilities to help government, public, and private sectors to advance the use of real-time payments in Latin America.”

ACI currently powers 26 domestic and pan-regional real-time schemes across six continents — including 10 central infrastructures — providing solutions to central banks, participant banks, fintechs, and other payment service providers. Globally, ACI covers approximately one-third of the countries that offer real-time payment services, reaching about 3 billion people served by various organizations, including central governments, payment networks, banks, financial institutions, and fintech companies.

About ACI Worldwide

ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernizing their payment infrastructures, simply and securely. With nearly 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.

About Mexipay

Mexipay is a new-generation payment service provider specialized in offering managed services, focusing on boosting ISO 20022 real-time payments, promoting financial inclusion, and evolving legacy technology. Through our omnichannel platform built around ACI’s Enterprise Payments Platform, Mexipay provides access as never before to small and medium banks, merchants, governments, and other payment participants, untapping a new era of alternatives and opportunities for the complete payments ecosystem in México.

© Copyright ACI Worldwide, Inc. 2024
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries, or both. Other parties’ trademarks referenced are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240827911494/en/

Media:

Nick Karoglou: nick.karoglou@aciworldwide.com

Katrin Boettger: katrin.boettger@aciworldwide.com

Source: ACI Worldwide

FAQ

What is the purpose of ACI Worldwide's partnership extension with Mexipay?

The partnership extension aims to enhance Mexico's real-time payments ecosystem, drive instant payments adoption, and boost economic growth and financial inclusion for Mexico's businesses and consumers.

How many real-time payments were processed in Mexico in 2023?

According to ACI's Prime Time for Real-Time report, 3.8 billion real-time payments were processed in Mexico in 2023, making it the 10th largest real-time payments market in the world.

What is the projected CAGR for real-time payments in Mexico between 2023 and 2028?

The projected Compound Annual Growth Rate (CAGR) for real-time payments in Mexico between 2023 and 2028 is 7.8%, which is one of the slowest-growing rates in Latin America.

What solution will Mexipay use from ACI Worldwide (NASDAQ:ACIW) to enable new payment options?

Mexipay will utilize ACI's Digital Central Infrastructure solution, which is part of the ACI Enterprise Payments Platform, to enable new payment options in Mexico.