Both countries license fintechs, but the paths differ. Mexico authorises electronic-money and crowdfunding institutions under its 2018 Fintech Law, and fewer than half of the applications filed since 2019 have been approved. Brazil authorises payment institutions through its central bank and, from July 2026, starts phasing in a new, risk-based capital requirement. Most foreign companies launch through a licensed partner first and apply only once volume justifies it.
What you need to know
- Mexico: 201 applications between 2019 and 2025; 89 authorised, 52 rejected, 44 withdrawn. 1
- Brazil: minimum capital moves from fixed amounts to a formula based on activity and technology risk, phased in from July 2026 to January 2028. 2
- Licensing is a multi-year project in both countries. Partnering with a licensed institution is how almost everyone starts.
- The licence you need depends on what you do with customer money, not on being a “fintech”.
What does Mexico's Fintech Law regulate?
Mexico's Law to Regulate Financial Technology Institutions, in force since 2018, created two licences: IFPE (instituciones de fondos de pago electrónico), for companies that issue and manage electronic money, and IFC (instituciones de financiamiento colectivo), for crowdfunding. It also allows temporary authorisations for novel models to test products under supervision. 3
The numbers show how selective the process is. Between 2019 and the end of 2025 the authorities received 201 applications: 135 for IFPE, 56 for IFC and 10 for novel models. They authorised 89 (62 IFPE and 27 IFC), rejected 52, saw 44 withdrawn, and had 16 still pending. 1 Banco de México describes the sector as still consolidating.
What does Brazil require?
Brazil regulates payment institutions (instituições de pagamento) through the Banco Central do Brasil. The base rule is Resolution BCB 80 of 2021, which sets how they are constituted and authorised, amended by Resolution BCB 494 in September 2025. 4
The bigger change is capital. On 3 November 2025 the central bank and the National Monetary Council replaced fixed minimums with a formula of two parts: a cost component (R$ 2 million per operational category, plus R$ 5 to 10 million for technology-intensive services) and an activity component tied to what the institution actually does. 2 The transition runs in steps:
| Period | What applies |
|---|---|
| Until 30 June 2026 | Previous minimums; institutions report their categories 2 |
| 1 July 2026 to 31 December 2027 | 25%, then 50%, then 75% of the difference to the new requirement 2 |
| From 1 January 2028 | The full new requirement 2 |
Mexico and Brazil side by side
| Mexico | Brazil | |
|---|---|---|
| Main licence for payments | IFPE (electronic money) | Payment institution |
| Who authorises | CNBV, with Banco de México and the Finance Ministry involved 3 | Banco Central do Brasil 4 |
| Track record | 89 authorisations from 201 applications since 2019 1 | Capital rules being reset, 2026 to 2028 2 |
| Direct access to the instant rail | Possible: twelve fintechs already participate in SPEI 5 | Possible for authorised institutions in Pix |
License, or partner first?
For a foreign company entering either market, the realistic sequence is almost always the same. Launch through a licensed local institution that holds the customer funds and connects to the rails. Measure real volume. Apply for your own licence when the partner's fees, product limits or control over the customer relationship cost more than running a regulated entity.
The mistake is applying first. An application ties up capital, local directors and a compliance team for years before the first customer. In Mexico, a withdrawn or rejected application is a more common outcome than an approved one. 1
A licence is a cost you carry every month, whether or not the product works. The companies that get it right treat it as the last step of the entry, after a partner has proved there is volume worth regulating.
What this guide does not cover
It does not cover banking licences, lending-only entities such as Mexican SOFOMs or Brazilian SCDs and SEPs, crypto-asset licensing (see our guides on Brazil and Argentina), or tax. Authorisation timelines vary widely by case, so we do not publish an average.
Frequently asked questions
What is an IFPE?
An institución de fondos de pago electrónico: a Mexican institution authorised under the Fintech Law to issue, manage and transfer electronic money. It is the licence most payment and wallet companies seek in Mexico.
How many fintechs are licensed in Mexico?
Between 2019 and the end of 2025, 89 institutions were authorised under the Fintech Law: 62 electronic-money institutions and 27 crowdfunding institutions, out of 201 applications.
How much capital does a Brazilian payment institution need?
It is moving from fixed amounts to a formula. The cost component alone starts at R$ 2 million per operational category, with R$ 5 to 10 million more for technology-intensive services, plus an activity component. The new requirement phases in from July 2026 and applies in full from January 2028.
Can a foreign company operate without its own licence?
Yes, through a licensed local partner that holds customer funds and handles the regulated activity. This is how most foreign companies start in both countries.
Which is easier, Mexico or Brazil?
Neither is quick. Mexico's process is selective, with fewer than half of applications approved. Brazil's rules are changing, with higher and more activity-based capital. The better question is which market has the volume that justifies the cost first.
Related guides
- How the instant payment rails in Latin America work
- Do you need a local entity in LATAM?
- Brazil crypto regulation: VASP licensing
Sources
- Banco de México, 2025 annual report on the powers conferred by the Law for the Transparency and Ordering of Financial Services, as reported by Fintech Expert México, 2026
- Joint Resolution CMN/BCB 14/2025 and Resolution BCB 517/2025, 3 November 2025, summarised by CSMV Advogados
- Ley para Regular las Instituciones de Tecnología Financiera, Cámara de Diputados (current text)
- Banco Central do Brasil, Resolution BCB 80 of 25 March 2021, as amended by Resolution BCB 494 of 5 September 2025
- Omar Mejía Castelazo, Deputy Governor, Banco de México, remarks at Fintech México Festival 2026, reported by Mobile Time Latinoamérica, 26 February 2026