Collisons' Stripe aims to win trust of Mexican users
The Limerick-born Collison brothers' mobile payment company Stripe has begun operations in Mexico, three weeks after the launch of a similar system - Cobro Digital or CoDi - backed by the nation's central bank, Banxico.
CoDi's launch is aimed at boosting the amount of digital payments used in the nation's cash-heavy economy. The Mexican government is hoping the move to digital payments will help crack down on illicit transactions while boosting its tax revenue.
Stripe, used by companies like Uber, touts a key difference between it and CoDi: Its users don't have to sign up for a bank account. Distrust of established banks in Mexico is high, and remains one of the key obstacles to widespread CoDi adoption.
"We will make life simple, whatever the payment systems are required," John Collison told reporters in Mexico City. "You can just go back to building your business."
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CoDi, which was rolled out in conjunction with a group of the nation's largest banks, is regarded as infrastructure upon which established banks can build their own payment applications using QR code technology.
Stripe aims to market its services throughout Mexico.