Galileo, the financial services API and payments platform behind big-name fintechs like Chime and Robinhood, announced its expansion into Mexico last week through a certification with Mastercard. 

“Financial inclusion begins at the enabling layer, which is where Galileo focuses,” said Tory Jackson, Galileo’s in-country manager for Mexico. “You have almost 130 million people [in Mexico]. Many of them have smartphones, but not that many have bank accounts.”  

Salt Lake City-based Galileo’s expansion into Mexico opens the door for fintech clients in the U.S. to move into a new market with an estimated underbanked population of 42 million, according to Reuters. For an industry that often prides itself on launching financial services for consumers left behind by legacy banks, the expansion to Mexico could provide an appealing opportunity for Galileo clients.  

The expansion also creates an opportunity for Galileo to gain new clients in Mexico. The company announced a partnership with the Mexican challenger bank Klar, marking Galileo’s first client based in the country. With fintechs like Stori and Credijusto growing in Mexico, the expansion could provide a profitable opportunity for Galileo.  

Galileo enabled the expansion through a certification with Mastercard Mexico Domestic Switch. The domestic switches offered through Mastercard allow Galileo to work with local issuers to both issue and process domestic payments in Mexico. The platform will support PIN and ATM transactions, as well as settlement and chargeback processing. 

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Galileo made headlines last month when SoFi announced it would acquire the company for $1.2 billion. The deal turned heads, in part because many Galileo clients are SoFi competitors. Sam Maule, managing partner for North America at the fintech consultancy 11:FS, told Bank Innovation at the time that the deal raises “some interesting questions about potential conflicts of interest around those firms’ data, given many are competitors.” 

Jackson said he couldn’t comment on the effects of the acquisition as the deal hasn’t closed yet and the two companies are still independent entities. He added that the expansion plans were in place before the acquisition announcement.  

Galileo, founded in 2001, raised a $77 million Series A in October 2019. Through clients that also include Varo Money, Revolut and Monzo, the company processed $53 billion in annualized payments volume in March. According to Jackson, the company is looking to expand beyond Mexico and into other Latin American markets, including Columbia, Argentina, Brazil, Chile, Peru and Uruguay. 

“We’re working currently to satisfy the demands for our expansion,” Jackson said. “It’s all happening, and it’s all happening now.”