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In Mexico, where nearly 37% of adults lack access to traditional banking, cash remains the primary means of payment even within the banked population. This creates challenges for everyday transactions, from splitting bills with friends to managing household expenses. However, a new wave of digital financial solutions is emerging, aiming to bridge this gap and empower individuals.
Enter Moneypool, a platform that simplifies group payments and leverages data to build personalized financial products.
With the digital commerce market in Latin America projected to surge by 73% by 2025, the opportunity is ripe for fintech innovations like Moneypool (Statista).
Moneypool: From Frustration to Financial Empowerment
The founder's story behind Moneypool reveals a unique blend of personal experience, analytical thinking, and a keen understanding of the evolving financial landscape. Working in the early days of fintech in Mexico, Igancio, co-founder of Moneypool, witnessed the power of technology to democratize financial services, particularly for the unbanked population. This sparked a curiosity about the vast amount of financial data hidden within everyday transactions, data that could be leveraged to unlock new opportunities.
Moneypool isn't just your average money transfer app. It's a two-sided platform with a unique value proposition:
For users: It simplifies sending money for everyday activities like group dinners, gifts, and shared expenses. No more awkward bill splitting or chasing friends for repayment.
Behind the scenes: Moneypool leverages anonymized transaction data along with social context to build a rich dataset. This enables Moneypool to potentially create future products that are tailored for their users.
- Personalized financial products: Imagine credit, debit, and investment options tailored to your spending habits and group activities.
- Improved financial solutions: By understanding social spending patterns, Moneypool can develop services that benefit both individuals and small businesses.
“Moneypool isn't just your average way to send cash to your friends. It's like a magic trick! We make it easy to pay back your friends for things like barbecues or gifts, but there's more to it than that,” Ignacio Alvarez explained it to VC Mexico. “Behind the scenes, we're gathering information about how people use money together. This helps us build even better tools for you in the future, like special credit cards, bank accounts, and investments that work better because they understand how you spend money with your friends and family.”
“Moneypool is like having a financial superpower that gets stronger the more you connect with others!” - Ignacio Alvarez
Founders
Building Trust in a Newly Digital Landscape
‘Starting Moneypool in 2015 was like pushing against a wall of skepticism”. Ignacio Alvarez told VC Mexico. “People weren't ready to trust online payments, even for basic things. We had to overcome this "curb" by building trust step-by-step through transparency, security, and a seamless experience. Thankfully, the landscape has changed. Pioneers like Amazon paved the way for online transactions, and today, people are comfortable trusting them. This opens doors for Moneypool to offer its core value: easy group payments and personalized financial services based on data”.
“ We're not just riding the wave; we're helping shape a future where finance is both secure and social in Mexico.”- Ignacio Alvarez
Features of Moneypool:
- Group Payments: Create "Pools" for various purposes like gifts, parties, house fees, charity events, personal needs, etc.
- Easy Payment: Invite participants via link, no app download required for them to pay.
- Card Payments: Accept payments through credit and debit cards.
- Transparent Tracking: See who has paid and who hasn't within the Pool.
- Fast Withdrawals: Transfer collected funds to your bank account instantly (24/7).
- Security: Money remains secure in the Pool until you withdraw it.
- Fees: There is a 3.9% commission charged to payers for card transactions.
What's next for Moneypool?
Moneypool has already seen impressive organic growth, reaching over 200,000 active users thanks to its built-in virality through referrals. But with the team recognizing the potential for exponential expansion, the next 12-24 months will see the company shift gears and build a dedicated "acquisition engine." Moneypool wants to drive its growth beyond organic referrals and explore actively driving user growth through targeted strategies and partnerships.
Funding
2021, $3.06M, (Seed) from renowned investors such as Goodwater Capital, James Beshara, Michael Sidgmore, Andrew Vigneault among others.
Market Opportunity
Moneypool isn't just another money transfer app; it's a financial revolution waiting to happen, especially in Mexico and Latin America. Here's why:
- Large, Unbanked Population: 70% of LatAm's population remains unbanked or underbanked, and 58% of point of sale purchases are still made in cash, creating a massive potential user base for Moneypool's inclusive approach (Forbes).
- Mexico (and LatAm) is a group oriented culture: Mexico is an interdependent culture and Mexicans spend twice as much time in group conversations as their counterparts in the US. Mexicans spend more time in groups and less time alone (Journal of research in personality).
- High Mobile Penetration: With mobile phone ownership exceeding 79.2% in Mexico, Moneypool's mobile-first platform is ideally positioned to reach this digitally connected population (Statista).
- Growing Digital Payments: Digital payments in Latin America were already gaining traction pre-pandemic, with a transaction value exceeding $100 billion in 2019. This momentum is set to continue, with the market projected to reach a staggering $1.8 trillion by 2025, representing a whopping 73% increase. Moneypool is perfectly positioned to capitalize on this digital payments explosion through its seamless and secure mobile platform (Statista).
By leveraging its unique social data and building a strong community, Moneypool has the potential to provide unique financial products in the years to build.
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