MEXICO CITY—Mexico-based convenience store OXXO wants to become a super bank, reports Rest of World, and it’s starting with its ready-to-use debit card, Spin. Launched in November 2021, 1.6 million people have signed up for Spin as of early March, making it one of the fastest-growing debit card companies in Mexico.
Customers can sign up for Spin at any of OXXO’s 20,000 locations in Mexico, and the account is accompanied by an app that offers digital payments, transfers and access to a loyalty program. It’s the only ready-to-use debit card in Mexico that new customers can use immediately after signing up without any additional online registration or app download.
One Spin customer recently signed up for the card after not banking anywhere.
“I paid $50 pesos [around $2.50], got the card immediately, and 24 hours later, I was getting money deposited,” she told Rest of World.
OXXO has partnered with ComproPago, which is a Mexican fintech startup that facilitates cash payments and transfers on its platform, and fintech analysts and competitors say OXXO is leveraging the two strongest assets in its arsenal to grow its user base: sheer convenience and brand recognition.
Nubank, Brazil’s largest neobank, is watching OXXO’s Spin program. The Monterrey company’s strategy of “acquiring customers physically [has] seen higher and faster customer growth than their competitors. It is something for us to consider,” said Nubank in a confidential memo to its employees seen by Rest of World.
One advantage OXXO has over other fintech products is its physical presence, as many Mexicans still seek out a physical presence when choosing a financial product.
“Launching any financial product costs a lot of money, but companies like OXXO have the size and resources to subsidize costs and scale faster than any fintech,” René Lankenau, former head of digital innovation at the Mexican bank BanRegio, told Rest of World. “The families that own FEMSA made their wealth from owning banks. I believe OXXO will become a super bank.”