22 Years of Growth and Expansion
Established 22 years ago, Macropay has revolutionized the retail sector in Mexico. Already present in every Mexican state, it aims to disrupt the market and reinforce the company's mission of bringing technology to everyone with its ambitious expansion strategy.
In this special report for Newsweek magazine, Guillermo Osorio, founder and Chairman of the company, and CEO Alejandro Herrera tells us about the keys to success in the business model and the company's expansion.
Starting as a provider of cell phones purchased in cash, Macropay has evolved into a supplier of cell phone credit, cash loans, and credit for motorcycles, among others. With these services, the company aims to provide financial accessibility to all, particularly those who have typically found this hard to come by when using traditional lenders. To do this, Macropay has embraced and developed new technologies, allowing them to offer services to its customers with greater confidence. Working towards financial inclusion, the company is expanding loans to over seventy percent of the population who are not able to obtain credit. The company expects to finance over 1.5 million loans by the end of 2022, to the value of 5 billion pesos.
Key to democratizing access to finance has been making the process of applying for loans quicker, more efficient, and more reliable. Typically, applying for loans can take weeks; however, Macropay has pioneered an algorithm that analyzes potential customers' Facebook accounts and determines the type and conditions of suitable loans in only fifteen minutes. To encourage prompt payment, the company has developed an app that allows customers to check their next payment date.
Macropay has set itself apart from competitors with its unique physical structure and highly profitable retail shops. Walking down the streets of Mexico, you will likely find a Macropay branch just a few meters away that aims to give you a memorable retail experience. Here technology specialists assist and offer clients a wide range of technology products. However, the company is moving towards a hybrid model to make the best of physical and virtual retail experiences.
Talking about the company's competitive and strategic advantages, Mr. Osorio explains how being based in the city of Merida has benefited the company. It is an attractive location for investors and employees due to the city's high quality of life and safety.
Macropay recently opened new corporate offices in Merida that exclusively house teams specialized in the area of Digital Transformation. These teams ensure that the company is at the forefront of technology and always thinking about providing timely support to its customers. They have been developing technologies to continue their growth and performance. Examples include a blocking system and organization software for clients' data, which is used to provide better services. The founder also points out that directors and deputy directors have total creative freedom to make decisions and run the business, which has proven successful.
The Covid-19 pandemic suited the company, as people's reliance on technology to study and work meant increased demand for their services. Additionally, CEO Alejandro Herrera notes how the pandemic gave the company a chance to pivot. They reassessed the Macropay's business continuity plan, leading them to grow and diversify successfully. Coming out the other side of the pandemic, Macropay had generated 3000 jobs, and by the end of 2022, they will have created 4,000 jobs throughout the country.
As part of Macropay's aggressive growth strategy, they have been setting up a point of sale every 18 hours, with the goal of launching 600 stores by the end of 2022. This is due to reach 2,000 branches by 2025.
In its growth roadmap, Macropay has also included plans to expand outside Mexico, aiming to reach countries such as Colombia, Ecuador, Peru, and Brazil among others, through Paguitos Móvil. A new product that offers financing to businesses, enabling them to grow and increase their sales.
Beyond its commercial plans, Macropay wants to bring financial literacy to Mexico by providing customers with educational content that teaches them how to manage their finances responsibly and apply for other loans in the future. Currently, when applying for a loan with Macropay, you gain access to a video explaining the advantages and benefits of the financing.
Finally, the Founder and Chairman of the Board, Mr. Osorio, and CEO, Mr. Herrera, highlighted the confidence of domestic and foreign investors in Mexico since the country is increasingly seen as a location for capital that is likely to provide a good return on investment and growth opportunities for businesses.
If you want to know more about how Macropay is making technology available to everyone, go to macropay.mx
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