By Valentine Hilaire

MEXICO CITY, (Reuters) – Fintech Stori’s credit cards are designed to target the vast majority of Mexicans without any formal credit. The company plans to invest $175million to expand in 2022, as it increases its customer base and hires more employees.

Startup issues cards to Mexicans who are “underbanked”, such as Nadir RedonTexa (33), who earns a living selling clothes and accessories made of stainless steel in Zihuatanejo, but could not obtain a credit card in any bank.

In a telephone interview, he stated that his monthly earnings range from 4,000-8,000 pesos. His business is informal and seasonal. Stori gave me a monthly credit of 1,500 Mexican pesos (75.18), and it was easy to repay.

According to Mexico’s statistical agency, only 31% Mexicans have credit. Those who do tend to buy convenience or department store cards.

Marlene Garayzar is the founder of Stori, an online credit company that offers a line to nearly 99% of all applicants. The background check examines many factors, including where the applicant lives and what they do for a living.

We have found that some applicants may not possess the necessary documents. If this happens, we could see 100% acceptance. She said that credit amounts as low as 500 pesos are offered and people pay for them.

Garayzar stated that Stori is backed U.S. GGV Capital as well as Goodwater Capital. However, it declined to name the markets in which Stori is looking to expand.

Mexicans without a job or with poor credit histories tend to go door-to-door before getting approved for loans. Eduardo Alvarado (28 years old) was denied a credit card by Nubank, a Brazilian fintech.

“Nu wanted me to give it another chance, so I visited Stori to see if they would accept me. Months later, Nu asked me to try again and I was accepted by them. It was very influential for me to get Stori as my starting credit.” He stated.

Stori boasts one million clients, and the majority of these are credit-card holders for the first time. Nubank is home to around 1.4million Mexican customers. 60% of those who have used Nubank’s services before were issued a Nubank card.

$1 = 19.9515 Mexican Pesos