The fintech of payment processing ToditoCash announced that it would no longer charge any fee to its users for transactions made through its application.
In an interview on Monday, December 2, 2019, the CEO of COPA PROSA Ricardo Dávila announced that from that moment, the services of the ToditoCash application would no longer charge their users any commission to their users.
From December 2019, ToditoCash users can transfer money from their mobile phones, pay their cable services, telephone line, online games, and many other products and services with a zero cost for the transaction.
Options for an unbanked population
In Mexico, more than 42 million people do not have access to financial services. Fintech startups such as ToditoCash present disruptive options in the very lucrative payment sector. Only a few banks operate in Mexico, which allows service fees to generate more than 55% of bank revenues.
“This has always been the dairy cow of the industry. Poor customer service is extensive in this business, but especially for individuals,” added Dávila.
Many of the payment services in Mexico are performed through large convenience store chains such as Oxxo, which operates more than 18K stores. This company has been one of the most dominant actors in payment methods, but this is about to change.
The Mexican market offers ample opportunities for startups in Fintech. According to a statement from the Ministry of Communications and Transportation of Mexico at the beginning of this year, less than 18.1% of the 70 million active smartphones have a financial services app. These represent only 8.3 million people in a nation with a population of 126 million.
26,000 contact points
ToditoCash is one of the few Fintech companies registered in the National Banking and Securities Commission, which is the banking authority of Mexico. Technological solutions are allowing questions about the current business model of payment methods, offering lower-cost alternatives. ToditoCash has one of the largest contact networks with multiple retail stores, hypermarkets, and convenience store chains. All this allows them to maintain currently 26 k points of contact to Mexican fintech