Ualá Gets Argentine Regulator's Nod to Acquire Wilobank

Argentina's central bank has approved payments service provider Ualá's acquisition of digital bank Wilobank, clearing the way for the company to broaden its reach in the Latin American financial services world.

The deal, which was struck in 2021, will give Wilobank owner a stake in Ualá, an application that offers an accessible payment system for people without a fixed income or who are outside the formal banking system.

The deal will allow Ualá to carry out operations only permitted in the country to banking entities, such as the payment of salaries and pensions.

Ualá, which is valued at USD 2.45 billion and has more than five million clients across Latin America, recently invested USD 80 million in its operations in Colombia, after acquiring the Mexican bank ABC Capital in a 2021 deal that has yet to be approved by local regulators.

The payment provider closed an investment round for USD 350 million in August 2021, has previously drawn funding from tech giant Tencent and SoftBank, a technology investment giant.