Clip Gets $50M Credit Facility to Expand Payments Solutions in Mexico
Mexican commerce and digital payments platform Clip has obtained a $50 million credit facility from Morgan Stanley, J.P. Morgan and HSBC that it will use to continue adding payments solutions for the country’s businesses as well as improving financial access for both business and consumers.
“This credit facility represents another important milestone for Clip, as it provides additional support to our already solid balance sheet and liquidity position,” Clip Founder and CEO Adolfo Babatz said in a Tuesday (Sept. 6) press release. “It is important for Clip and our story to receive the support of banks of this caliber validating our mission of expanding financial inclusion in Mexico.”
The announcement comes after a spate of product launches and other news from Clip. In August, the company received approval for an Institution of Electronic Payment Funds (IFPE) license from Mexico’s National Banking and Securities Commission (CNBV). In May, it added three new point-of-sale (POS) terminals, two hardware accessories and three remote payments software features, according to the press release.
These join Clip’s other products and services that aim to give more of Mexico’s small and medium-sized businesses (SMBs) access to digital payment solutions — and that have already enabled the digital transformation of the 3 out of 4 Clip merchants who previously transacted on with cash — per the press release.
“We continue to expand our offering in response to the increasing demand for digital payments solutions in Mexico,” Babatz said in the release.
PYMNTS research has found that 46% of consumers in Mexico said they used their smartphones during their most recent retail journey — not just to pay at the point of sale, but also to locate items in-store, track their eCommerce purchases via app and do other things at each point in the journey.
Read more: Merchants’ Digital Shopping Features Losing Fight Against Friction in Mexico
What’s more, merchants in Mexico lead in the implementation of digital features, with 72% offering in-store navigation apps and 68% offering real-time inventory status updates.