Nu Holdings (NYSE: NU) built its empire in Brazil. But its long-term future may depend on overseas countries, particularly Mexico.
Brazil remains Nu Holdings’ profit engine. It’s where the company started, refined its underwriting model, built brand trust, and achieved scale. But empires rarely rely on a single territory.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
If Nu Holdings wants to become the dominant digital bank of Latin America, not just Brazil, Mexico must work. And that means more than just adding users.
Nu Holdings has grown rapidly in Mexico. The country represents one of the largest underbanked populations in Latin America, with millions of consumers lacking access to affordable credit and modern financial services.
Customer additions have been strong, reaching 13 million in the third quarter of 2025. But adding users is the easy part. The more challenging task is translating that growth into sustainable profitability.
Brazil benefits from operating leverage, brand maturity, and data scale. Mexico is earlier in its development curve. Credit models are still seasoning, while risk behavior is still developing.
Nu Holdings must prove that its Brazilian playbook travels well.
One of the significant questions is whether Mexico’s business can deliver economic benefits comparable to those in Brazil. Others include:
-
Can Mexico approach Brazilian revenue per customer over time?
-
Can it maintain similar delinquency profiles?
-
Can cost-to-serve remain structurally low in a new regulatory and competitive environment?
If Mexican average revenue per active customer rises steadily while asset quality remains stable, it will strengthen the whole group. If revenue per user stagnates or credit costs rise materially, expansion becomes more expensive than expected.
Investors should monitor three signals closely:
-
Loan growth and delinquency trends in Mexico
-
Revenue mix development beyond credit
-
Efficiency metrics as the business scales
The good news is that early signs suggest that Mexico is on track to become an important (and profitable) market for Nu Holdings. For instance, Mexico’s average revenue per active customer reached $12.50 in the third quarter of 2025, significantly outperforming the young Brazilian business at a similar stage (2019).
