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Economy

Oxxo México: Slowdown & Closures Threaten Expansion 🇲🇽

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy

Oxxo’s Banking Pause: A Strategic Retreat or a Missed Opportunity in Mexico’s Fintech Boom?

Over 24,000 Oxxo convenience stores dot the Mexican landscape, and FEMSA, the company behind them, had a bolder vision: turning these ubiquitous locations into a full-fledged banking network. But that plan is now on hold. FEMSA CFO Martín Arias Yániz recently announced a pause in pursuing a banking license, citing the need for a deeper understanding of the evolving mercado. This isn’t simply a delay; it’s a pivotal moment that could reshape the future of financial inclusion in Mexico and signal a shift in how even the largest players approach the country’s burgeoning fintech sector.

The Allure of Oxxo Spin and the Mexican Banking Landscape

FEMSA’s ambition centered around leveraging its existing financial platform, Oxxo Spin, to offer a suite of banking services – payroll, savings, and credit – to millions of customers. Currently, Spin allows users to send and receive money, pay bills, recharge mobile airtime, and purchase gift cards via a Visa debit card. The idea was to capitalize on Oxxo’s unparalleled reach, particularly among the unbanked and underbanked populations, and become a major disruptor in the Mexican financial system. However, the timing is critical. Mexico is witnessing a surge in fintech companies vying for the same customer base.

Companies like Nu, Mercado Pago, Plata Card, and Revolut are aggressively expanding their financial services offerings in Mexico, creating a fiercely competitive environment. This increased competition, coupled with evolving regulatory landscapes, is likely the driving force behind FEMSA’s cautious approach. The company isn’t abandoning its financial ambitions, but it’s recognizing the need for a more nuanced strategy.

Why the Pause? Decoding FEMSA’s Strategic Shift

The decision to pause the banking license application isn’t a sign of weakness, but rather a demonstration of prudent financial management. FEMSA wants a clearer picture of consumer behavior and data privacy concerns before committing to the significant investment and regulatory scrutiny that comes with becoming a bank. Specifically, Arias Yániz emphasized the importance of understanding how to best manage client information – a crucial consideration in an era of heightened data security awareness and increasingly stringent regulations.

This pause allows FEMSA to refine its business model, potentially focusing on strengthening Oxxo Spin’s existing services and building a more robust data analytics infrastructure. It also provides time to observe how competitors navigate the regulatory hurdles and establish market share. This “wait-and-see” approach could prove to be a smarter long-term strategy than rushing into a crowded and complex market.

The Data Advantage: The Key to Success in Mexican Fintech

The ability to effectively analyze customer data will be paramount for any fintech player in Mexico. Understanding spending habits, creditworthiness, and financial needs is essential for offering tailored products and services. FEMSA already possesses a wealth of transactional data through Oxxo’s retail operations. However, transforming this data into actionable insights requires significant investment in technology and expertise. The pause allows FEMSA to focus on building this crucial capability.

Beyond Banking: The Future of Oxxo’s Financial Services

Even without a full banking license, Oxxo Spin has the potential to become a significant financial hub for millions of Mexicans. Expanding its existing services – such as micro-loans, insurance products, and investment options – could provide substantial value to customers and generate new revenue streams for FEMSA. Furthermore, partnerships with established financial institutions could allow Oxxo to offer a wider range of services without the complexities of becoming a bank itself.

The future of Oxxo’s financial services likely lies in a hybrid model – leveraging its physical presence and customer base to deliver innovative financial solutions in collaboration with other players. This approach could be more sustainable and less risky than attempting to compete directly with established banks and aggressive fintech startups.

What are your predictions for the future of financial services in Mexico, and how will Oxxo navigate this evolving landscape? Share your thoughts in the comments below!

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Economy

The successful economic legacy of Spain in Mexico – José María Rotellar

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy

Mexico & Spain: A Historical Reckoning as Presidential Dispute Ignites Economic Debate

Mexico City – A fiery political dispute between the current and former presidents of Mexico and Spain has unexpectedly opened a critical debate about Mexico’s economic trajectory, forcing a re-examination of the often-overlooked benefits of its centuries-long relationship with the Hispanic Monarchy. The controversy, unfolding rapidly and attracting international attention, centers on accusations of historical misrepresentation, but has quickly evolved into a discussion about the foundations of Mexico’s modern economy. This is a developing story, and Archyde is providing up-to-the-minute coverage.

A map illustrating the vast reach of New Spain, a key component of the Spanish Empire.

From Barter to Global Trade: New Spain’s Economic Integration

For generations, the narrative surrounding Spanish colonization has focused on exploitation. However, a growing body of economic history suggests a far more nuanced picture. For over three centuries, New Spain wasn’t simply a source of raw materials; it was a remarkably prosperous region precisely because of its integration into the burgeoning global economy orchestrated by the Spanish Empire. Before the Spanish arrival, Mesoamerican civilizations operated within localized, low-productivity systems. The Empire’s arrival connected Mexico directly to intercontinental trade routes, a first wave of globalization.

The port of Veracruz became a vital hub for European goods, while Acapulco fueled the legendary Manila Galleon trade, linking Asia, the Americas, and Europe in a single, dynamic network. This wasn’t just about silver – though the eight-real coin became the world’s first international currency – it was about a fundamental shift from a barter-based economy to one driven by exports of metals, agricultural products, and crafts. Remarkably, the first banks and credit systems on the continent were established under Spanish legal frameworks, drawing inspiration from Roman law and the School of Salamanca.

Building a Nation: Infrastructure, Education, and Human Capital

Prosperity isn’t solely about resources; it’s about building the foundations for sustained growth. Spain invested heavily in New Spain, establishing the first universities in the Americas – including the Royal and Pontifical University of Mexico in 1551 – alongside hospitals, seminaries, and technical schools. This commitment to education fostered a skilled workforce of scientists, engineers, and administrators capable of managing a vast territory.

Beyond education, the Spanish Crown funded an extensive infrastructure network: roads, bridges, aqueducts, mines, and meticulously planned cities. These weren’t simply colonial outposts; they were extensions of the kingdom, with inhabitants enjoying rights and responsibilities within a shared legal system. The sophisticated urban planning of Mexico City, Puebla, and Guanajuato stands as a testament to this advanced economic planning. In fact, per capita income in regions like Michoacán and Zacatecas often rivaled or surpassed that of many European areas at the time.

Stability and Institutions: A Legacy Often Overlooked

One of the most understated legacies of the Hispanic period was the remarkable economic and monetary stability it provided. The minting of Mexican silver created a strong, globally accepted currency, facilitating credit expansion, interregional trade, and public works projects. A well-organized fiscal system, with moderate taxes, further supported infrastructure, defense, and social welfare. Local Community Funds and councils acted as precursors to modern municipalities, fostering local savings and management.

Contrary to the narrative of simple plunder, much of the wealth generated in New Spain was reinvested in the region, funding public works, religious buildings, universities, roads, and internal trade. The Viceroyalty often even financed the Crown itself, contributing to the defense of the entire Empire.

Social Mobility and the Cost of Independence

The Spanish colonial framework also allowed for a degree of social mobility uncommon in other empires. Creoles – those born in the Americas – gained access to administrative, military, and ecclesiastical positions, establishing universities and guilds and participating actively in the urban economy. This fostered a burgeoning middle class that would lay the groundwork for future Mexican businesses.

However, independence in the 19th century proved to be a significant economic setback. Wars disrupted trade, destroyed infrastructure, and destabilized the monetary system. As economic historians like John Coatsworth have documented, it took over half a century for Mexico’s GDP per capita to recover to its pre-1810 levels. The institutional continuity provided by the Spanish framework was abruptly severed just as the industrial revolution was transforming Europe.

Today, the imprint of this Hispanic legacy remains visible in Mexico’s language, legal system, colonial cities, universities, currency, infrastructure, and business culture. Understanding this history isn’t about romanticizing the past; it’s about recognizing the complex interplay of symbiosis and mutual development that shaped modern Mexico. Spain provided institutions, infrastructure, and access to global trade, while Mexico contributed its talent, resources, and strategic location.

For more in-depth analysis of global economic trends and breaking news, stay tuned to Archyde.com. We are committed to providing insightful coverage of the stories that matter most.

Modern Mexico City skyline

Mexico City today, a vibrant metropolis built upon centuries of history.

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world

“If it happens to me, think of all the other women”

by Omar El Sayed - World Editor
written by Omar El Sayed - World Editor

Mexico’s President Harassed, Igniting National Debate & Legal Reform Push

Mexico City – In a shocking incident that has reverberated across Mexico and internationally, President Claudia Sheinbaum was harassed Tuesday while taking a walk from the National Palace to the Ministry of Education. The attack, captured on video, has sparked outrage and a renewed call for stronger legal protections for women in a country grappling with a deeply entrenched culture of gender-based violence. This is a breaking news story with significant implications for women’s safety and legal rights.

Details of the Attack: A Disturbing Encounter

President Sheinbaum, who deliberately chooses to interact directly with citizens rather than relying solely on motorcades, was approached from behind by a man who attempted to kiss her neck and inappropriately touch her. She immediately pushed his hands away and turned to confront him before a member of her security detail intervened. Initially, the President stated she didn’t fully grasp the extent of the harassment until reviewing the circulating videos. The assailant was arrested by Mexican police later that evening.

The incident underscores a troubling reality: even the nation’s highest-ranking female official is not immune to sexual harassment. “If this can happen to the President, what can happen to all the young women in our country?” Sheinbaum powerfully questioned during a press briefing, highlighting the pervasive nature of the problem.

A Nation Confronts a Crisis: Statistics & Context

Mexico faces a severe crisis of violence against women. According to United Nations data, a staggering 70% of girls over the age of 15 have experienced some form of molestation. Tragically, an average of ten women are murdered in Mexico every day. Veronica Cruz, a representative from the feminist collective Las Libres, emphasized the symbolic weight of the attack: “The fact that it even happened to the President of the Republic is a further symbol of the problem.”

Currently, legal protections vary significantly across Mexico’s 32 states. Nineteen states have “broad and aggravating criteria” for punishing sexual abuse, while nine have insufficient regulations, and four lack clear definitions of what constitutes abuse. Despite the Federal Criminal Code already providing for sentences of six to ten years imprisonment for sexual abuse, the lack of consistent enforcement and varying state laws contribute to a climate of impunity.

Sheinbaum’s Response: A Commitment to Change & a Personal Story

President Sheinbaum has vowed to address this disparity, announcing a plan to review legislation and ensure that sexual harassment is a criminal offense in all 32 states. She emphasized that reporting the incident wasn’t a personal choice, but an “obligation… a duty towards all Latin American women (and not only).”

In a deeply personal revelation, Sheinbaum shared that she experienced similar harassment as a 12-year-old while commuting to school. This personal connection fueled her determination to act. Importantly, despite the incident, Sheinbaum has stated she will not increase her personal security detail or alter her approach to engaging with the public, demonstrating a commitment to remaining accessible to the people she serves.

Beyond Legislation: A Holistic Approach

The government’s plan extends beyond legal reform. It includes initiatives to streamline the reporting process for victims of harassment, strengthen training for law enforcement and judicial officials on gender-based violence, and launch awareness and prevention campaigns targeting both men and women. Citlalli Hernández, head of the Secretariat for Women, stated the President has directed them to “find a way to ensure complaints are much more agile and that women can report more quickly.” The core message being delivered is clear: “You are not alone.”

Sheinbaum’s Rising Popularity & International Solidarity

President Sheinbaum, who assumed office on October 1, 2024, enjoys an impressive approval rating of over 70%, a record for a Mexican president at this stage in their mandate. Her popularity is attributed to her ability to navigate complex political landscapes, including managing the legacy of her predecessor, Andrés Manuel López Obrador, and skillfully addressing challenges posed by the United States. She recently reaffirmed Mexico’s stance against potential U.S.-led military intervention against drug cartels.

The attack has drawn expressions of solidarity from international leaders, including Iratxe Garcia Perez, President of the EU Socialists group, who stated on X (formerly Twitter): “The attack on Claudia Sheinbaum is not an isolated case… The EU and Latin America will put an end to this crime against women.”

This incident serves as a stark reminder of the urgent need for systemic change and a collective commitment to creating a safer and more equitable society for all women. The unfolding events in Mexico are a critical moment for advancing women’s rights and challenging deeply ingrained societal norms. Stay tuned to archyde.com for continued coverage of this developing story and in-depth analysis of the ongoing efforts to combat gender-based violence.

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Economy

Telefónica Plans Exit from Mexico After 24 Years and 23 Million Customers In more than two decades in Mexico, Telefónica prepares to exit the market, concluding its extensive involvement with over 23 million customers, signaling a major shift in its stra

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy

Telefónica Exits <a href="https://www.archyde.com/imprisonment-against-those-involved-in-human-trafficking/" title="Imprisonment against those involved in human trafficking">Mexico</a> after Two Decades, Signaling Shift in LatAm Strategy

Mexico City – After nearly a quarter-century of operation, Spanish telecommunications giant Telefónica is preparing to exit the Mexican market. The company’s President,Marc Murtra,confirmed the divestment this Tuesday as part of a broader strategic realignment away from Latin America. telefónica once boasted 23 million customers within Mexico, and the decision marks the conclusion of an era marked by both ambition and challenges.

This move aligns with Telefónica’s ongoing strategy, initiated in 2019 and reinforced by its Transform & Grow plan, to streamline operations and focus on key markets. The company intends to fully withdraw from its Hispam holdings,encompassing Mexico,Chile,and Venezuela,following previous divestments in Argentina,Peru,ecuador,and Uruguay,with Colombia soon to follow.

A Changing Landscape for Telefónica

Table of Contents

Telefónica’s future strategy will center around its operations in Spain, Germany, the United Kingdom, and Brazil. Camilo Aya, General Director of Telefónica in Mexico, reported a 2.7% increase in service revenue during the third quarter of 2025, driven by postpaid services, even as the exit plan takes shape. The details surrounding the sale of its customer base remain confidential, though Beyond One, the parent company of Virgin Mobile Mexico, has emerged as a potential bidder.

From Optimism to Obstacles: A Ancient Viewpoint

Telefónica initially entered the Mexican market at the beginning of the millennium, optimistic about the regulatory habitat and competitive opportunities. The company rapidly expanded through acquisitions of local operators, reaching 1.2 million customers by 2001. Executives at the time predicted Mexico could become the second-largest market for Telefónica Móviles globally.

Early strategies included aggressive pricing and prepaid plans, enabling Telefónica to become the second-largest mobile operator in Mexico, trailing only Telcel, owned by Mexican tycoon Carlos slim. In 2012,Movistar became the first provider to launch a fourth-generation network in Mexico,representing considerable investments in infrastructure.

however, the company encountered persistent challenges, including a concentration of market power and regulatory hurdles, coupled with unfavorable tariff revisions, fines, and spectrum usage costs. In 2019, an agreement with AT&T to utilize its mobile network as a virtual mobile operator (OMV) was established, and later renewed, indicating a shift in strategy to reduce costs and improve profitability.

regulatory Concerns and Market Dynamics

Industry analysts suggest Telefónica’s difficulties stemmed from regulatory constraints and a competitive landscape dominated by Telcel. Ernesto Piedras, director of The Competitive Intelligence Unit (CIU), noted that Telefónica initially offered hope for increased competition but ultimately faced unfavorable regulatory changes.

according to CIU data, Movistar customers had an average monthly spending of 74 pesos, less than the 146 pesos spent by AT&T users. This disparity highlighted a focus on lower-consumption users, limiting revenue potential. The firm’s prior sale of infrastructure and concessions five years ago left its customer base as its primary asset in Mexico.

Former Telefónica President Francisco gil Díaz publicly criticized the management of Mexican telecommunications regulatory bodies, claiming it undermined the company’s substantial investment. This sentiment underscores the complex relationship between Telefónica and the Mexican government.

The rise of New Players and Market Share

Telefónica’s decline coincided with the growth of competitors like AT&T, Bait, and Virgin Mobile. as of June 2025, Telcel commanded 66% of the Mexican mobile market revenue, followed by AT&T with 22%. Telefónica held a 6.7% share,with the remaining portion distributed among othre OMV operators. The exit of Telefónica signifies shortcomings in regulatory efforts to foster genuine competition.

Operator Market share (Revenue) – June 2025
Telcel 66%
AT&T 22%
Telefónica (Movistar) 6.7%
Other OMV Operators 5.3%

The Future of Telecommunications in Mexico

Telefónica’s departure signifies a broader trend of consolidation within the global telecommunications industry. Companies are increasingly focusing on core markets and streamlining operations to improve profitability. Similar patterns can be observed in other emerging markets where regulatory hurdles and intense competition pose challenges.

Did You Know? The rise of 5G technology is expected to reshape the telecommunications landscape. Operators who can successfully deploy and monetize 5G networks will likely gain a competitive advantage.

Pro Tip: Investors should closely monitor developments in the Mexican telecommunications sector,as the entry of new players and consolidation among existing ones could create both opportunities and risks.

What impact will Telefónica’s exit have on competition within the Mexican mobile market? How will regulatory bodies adapt to the changing dynamics of the industry?

frequently Asked Questions About Telefónica’s Exit

What is Telefónica’s main reason for leaving Mexico?
Telefónica is divesting from Mexico as part of a broader strategic shift to focus on key markets and streamline operations, as outlined in its Transform & Grow Plan.
Who is highly likely to acquire Telefónica’s Mexican customer base?
Beyond One, the owner of Virgin Mobile Mexico, is a potential bidder for Telefónica’s customer base, though details are still emerging.
What challenges did Telefónica face in mexico?
Telefónica encountered regulatory hurdles, a concentrated market dominated by Telcel, and unfavorable tariff revisions.
How long did Telefónica operate in Mexico?
Telefónica operated in Mexico for approximately 24 years, entering the market at the beginning of the millennium.
What is the current market share of Telefónica in Mexico?
As of June 2025, Telefónica held approximately 6.7% of the Mexican mobile market revenue.
Is this part of a larger trend in Latin america?
Yes, this is part of a broader trend of Telefónica divesting from several Latin American countries, including Argentina, Peru, Ecuador, and Uruguay.

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What are the potential consequences for Mexican consumers following Telefónica’s departure?

telefónica’s Mexico Exit: Impact on 23 Million Customers & the Telecom Landscape

The End of an Era: Telefónica’s Departure from Mexico

After 24 years of operation and serving over 23 million customers, Telefónica, a major player in the Mexican telecommunications market, is preparing for a full exit. This strategic shift marks a notable restructuring for the Spanish multinational and a potential upheaval for Mexico’s telecom industry. The decision, announced in late 2023 and unfolding throughout 2024 and 2025, isn’t a sudden one, but rather the culmination of increasing competitive pressures and a changing market dynamic.Telefónica’s move involves selling off its assets to local investment firms, effectively relinquishing control of its Mexican operations.

Key Factors Driving Telefónica’s Exit

Several factors contributed to Telefónica’s decision to leave Mexico. Understanding these is crucial for analyzing the future of the Mexican telecom sector:

* Increased Competition: The Mexican market is fiercely competitive, with América Móvil (Telcel) dominating a significant share.New entrants and aggressive pricing strategies have squeezed Telefónica’s margins.

* Regulatory Challenges: Navigating Mexico’s regulatory surroundings has proven difficult for Telefónica, with ongoing disputes over interconnection rates and infrastructure access.

* Investment Requirements: Maintaining and expanding network infrastructure, notably 5G, requires significant capital investment. Telefónica appears to be prioritizing investments in more profitable markets.

* Focus on Core Markets: The company is streamlining its operations, focusing on its core markets in Europe and Latin America (excluding Mexico). This strategic realignment aims to improve profitability and long-term sustainability.

* Debt Reduction: Proceeds from the sale of its Mexican assets will be used to reduce Telefónica’s substantial debt burden.

Impact on Mexican Consumers: What Does This Mean for You?

The exit of Telefónica will undoubtedly impact its 23 million Mexican customers. Here’s a breakdown of potential consequences:

* service Continuity: While the sale aims for a smooth transition, customers may experience temporary disruptions during the handover process.

* Potential Price Changes: New ownership could lead to adjustments in pricing plans and service offerings. It’s essential for customers to monitor their bills and contracts.

* Limited choice: The reduction in the number of major telecom providers could perhaps limit consumer choice in the long run.

* Focus on Mobile Services: Telefónica’s strength in Mexico was primarily in mobile services.Customers relying on fixed-line broadband or pay-TV may see the most significant changes.

* Increased América Móvil influence: With Telefónica’s departure, América Móvil’s already dominant position in the Mexican market is highly likely to be further strengthened.

The Acquisition: Details of the Sale to Investment Firms

Telefónica has agreed to sell its Mexican operations to a consortium of investment firms, including KKR and Blackstone. the deal, valued at approximately $5.1 billion USD, includes:

* Telcel’s Competitor: The acquisition encompasses Telefónica’s mobile infrastructure, including cell towers and spectrum licenses.

* Fiber Optic Network: A significant portion of Telefónica’s fiber optic network will also be transferred to the new owners.

* Brand Transition: The future of the Telefónica brand in Mexico remains uncertain, with the new owners likely to rebrand the operations.

* Regulatory Approvals: The sale is subject to regulatory approval from Mexican authorities, including the Instituto Federal de Telecomunicaciones (IFT).

The Role of the IFT (Instituto Federal de Telecomunicaciones)

The IFT plays a critical role in overseeing the transition. Its primary concerns are:

* Maintaining Competition: Ensuring the acquisition doesn’t create a monopoly or significantly reduce competition in the Mexican telecom market.

* Protecting Consumer rights: Safeguarding the interests of Telefónica’s customers during and after the handover.

* Infrastructure investment: Encouraging the new owners to continue investing in network infrastructure and expanding access to telecommunications services.

* Spectrum Management: Overseeing the transfer of spectrum licenses and ensuring their efficient use.

Future of the Mexican Telecom Market: Trends and Predictions

Telefónica’s exit signals a broader trend of consolidation within the Mexican telecom industry. Key trends to watch include:

* 5G Rollout: The deployment of 5G technology will continue to be a major focus for telecom operators, requiring substantial investment.

* Fiber Expansion: Demand for high-speed broadband will drive further expansion of fiber optic networks.

* Convergence of Services: Telecom companies will increasingly offer bundled services, combining mobile, fixed-line, and pay-TV offerings.

* Increased Data Consumption: The growing popularity of streaming services and data-intensive applications will fuel demand for data.

* Digital Inclusion:

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