Acquisition of Cash-Handling Operations: Tapi Payment Solutions Buys Out Mastercard's Arcus Division
The acquisition of Arcus' cash payments operations in Mexico by Argentina-based payments startup Tapi represents a significant milestone for the regional payments landscape. This strategic move substantially expands Tapi’s footprint in Mexico, allowing it to serve thousands of physical retail points such as OXXO, Chedraui, Finabien, 7-Eleven, and SYStienda, greatly enhancing its physical payment network presence in the country.
By integrating Arcus’ well-established payment infrastructure and local financial ecosystem relationships, Tapi bolsters its position as a regional payments leader in Latin America. The acquisition supports Tapi’s strategy to become a strategic partner to banks, fintechs, retailers, and service providers across the region.
Tapi’s acquisition enables the company to offer a more seamless, integrated payment experience that promotes financial inclusion throughout Latin America. This is especially crucial given the hybrid nature of payments in emerging markets, where cash remains prevalent but digital and card-based payments are rapidly growing.
Combining Arcus’ proven technology and network with Tapi’s cutting-edge payments infrastructure positions Tapi to process significantly more volume—over $2 billion anticipated in 2025, which is a fivefold increase compared to 2024—supporting large-scale recurring payments and cash transactions across multiple regulatory environments.
The deal reflects Mastercard’s strategic pivot away from operating certain cash payment networks directly in favor of partnering with innovative regional players like Tapi. Mastercard retains the Arcus brand and its processing capabilities related to real-time payments via Mexico’s SPEI system, focusing on its core strengths while leveraging Tapi’s operational capabilities to grow physical cash payment services.
Tapi, which was founded in 2022, has already raised a total of $31 million in funding, with backing from Kaszek and Andreessen Horowitz. The company's CEO, Tomas Mindlin, stated that the acquisition will broaden the company’s reach in Mexico, serving the country’s leading fintechs and banks, and significantly expanding its physical footprint.
Tapi plans to expand its Cash In/Out network in Mexico through strategic partnerships with the aforementioned retailers, aiming to provide a more comprehensive payment solution for its users and clients. Tapi's CTO, Nicolaas Andriano, stated that by integrating this technology with their API-first approach, they're making it easier for partners to launch embedded financial experiences.
The acquisition is aimed at expanding Tapi's presence in Mexico and strengthening its role as a regional payments leader. With this strategic move, Tapi is poised to reshape the regional payments ecosystem by consolidating cash and digital payment channels under a strong regional player, while allowing Mastercard to concentrate on high-margin digital payment infrastructure.
By merging Arcus' established payment infrastructure and local financial relationships, Tapi fortifies its status as a leading payments player not just in Mexico, but across Latin America. This acquisition allows Tapi to leverage Arcus' technology and network, aiming to process over $2 billion in payment volume by 2025, while also integrating technology with their API-first approach to enhance business partnerships and promote technological advancement in the finance industry.
