Neobank Vexi Raises Millions To Offer Young Mexicans Lower Interest Rate Credit Cards

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Mexico City-based Vexi describes itself as a neobank but doesn’t offer checking or savings accounts — yet. For now, its only offering is a credit card, which it offers through American Express without using any third-party issuers or processors. This helps the company earn more revenue through interchange fees, according to Merlos — as much as 3x as that of startups that do use third parties. Vexi’s offering also includes interest-free installments, cash back, purchase insurance and “competitive” interest rates. By competitive, it means in the range of 29% to 79%, which in the U.S. is considered extremely high. In Mexico, however, it falls significantly lower than the interest rates on microloans, for example, noted Merlos.