Mexican Payments/Commerce Platform Clip Raises $100 Million
Mexico-based digital payments/commerce platform Clip has raised $100 million in new funding.
The financing comes from investment funds managed by Morgan Stanley Tactical Value, and from “one of the largest, most experienced West-Coast mutual fund managers,” the company said in a news release Tuesday (June 18).
Clip says it will use the new funds to speed its product development initiatives to support its mission to drive financial inclusion in Mexico.
“Since its inception in 2012, Clip has built a complete portfolio of purpose-built payments, financial services and software solutions for small and mid-sized businesses (SMBs) in Mexico, becoming the country’s largest digital payments and commerce enablement platform by merchants served,” the release said.
The company offers software and hardware products and services to let SMBs accept digital payments, sell online and obtain credit.
“The investment from these two globally renowned investors is a testament to Clip’s opportunity to continue to lead the digital transformation of Mexico’s commerce ecosystem, and more broadly, provides even further validation of our mission to open access to digital payments, financial services and technology solutions to all SMBs in the country,” said Adolfo Babatz, Clip’s founder and CEO. “We are excited to leverage this financing round to continue to expand and strengthen our offerings to empower more stakeholders across Mexico’s economy.”
Research by PYMNTS Intelligence has found that nearly half of consumers in Mexico shop in stores without using digital shopping features.
“But it’s not because they prefer it that way; it’s because merchants in Mexico aren’t providing the features shoppers want,” PYMNTS wrote earlier this month. “Sixty-two percent of local consumers are looking for digital features that are not yet available there.”
Still, the research also found that merchants in Mexico recognize this issue and are working hard to close this digital deficit.
The reason shoppers in Mexico seek digital shopping features is because they often allow consumers to save money and enhance their overall in-store experience.
“In other words — just like we found when studying consumer behavior in Brazil, the U.K., the U.S. and elsewhere — these local shoppers also enjoy enhancing their brick-and-mortar shopping adventures with digital features: an approach to buying our research calls Click-and-Mortar shopping,” PYMNTS wrote.
Among the features consumers in Mexico are most excited about are flexible payment options, which approximately three-fourths of shoppers mentioned. Meanwhile, 72% of retail shoppers and 74% of grocery buyers want product details, while 70% of retail shoppers and 67% of grocery shoppers want access to product reviews.
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