TransUnion Expands to Mexico With Buro de Crédito Deal

TransUnion plans to buy Mexico’s largest credit bureau in the consumer credit business for $560 million.

The deal, Office has partnered Thursday (Jan. 16), it became the majority owner of Trans Union de Mexico, an arm of the country Credit Bureau.

“Our expansion into Mexico continues our commitment to making trust possible in global commerce,” President and CEO of TransUnion Chris Cartwright said in a news release.

“Credit bureaus are a catalyst for financial inclusion, and we are excited for the opportunity to bring the benefits of our state-of-the-art technology, innovative solutions and industry expertise to consumers. and business in Mexico. We are also eager to support the country digital transformation aims to empower consumers with increased economic opportunity. “

According to the release, TransUnion already owns nearly 26% of Trans Union de Mexico, has held seats on its board for more than two decades, and is one of the company’s technology providers. With this agreement, it will get another 68% from the sale of shareholders, including some of the largest banks in Mexico.

The release said Mexico has the 12th largest economy in the world – the second largest in Latin America (LatAm) – with a growing population and a growing middle class. The country also has rapid growth consumer credit spacewith more than half of its adults using at least one financial product.

“While credit penetration remains lower in Mexico than in other Latin American countries, it has increased significantly over the past decade, from 34% to 42% of GDP between 2013 and 2023,” the company said.

“Following the transaction, TransUnion intends to use its global operating model to strengthen Trans Union de Mexico’s services in the Mexican market, including further efforts to drive financial inclusion.”

The deal follows recent TransUnion advertisement of his intention to buy the British credit prequalification/distribution platform Monevo.

Earlier this week, PYMNTS looked at Mexico – and the rest of Latin America – in terms of its place in the world of digital payments in an interview with Marcelo Moussallimanaging director and Latin America product head executive of Bank of America.

“After many decades of payment status quoLatin America is going through a major change,” Moussalli told PYMNTS.

That shift is driven by Brazil and Mexico, which account for nearly two-thirds of the region’s total GDP. Regulators in those countries are introduced new payment initiatives to modernize their respective banking systems.