Mexican fundraisers can now seek donations on GoFundMe as the crowdfunding platform expands into the Mexican market, marking its 20th country of operation. The move comes as GoFundMe looks to tap into new Latin American markets following a decrease in COVID-19 related crowdfunding campaigns. CEO Tim Cadogan highlighted Mexico's status as one of the world's largest economies and its close ties with the U.S. as key factors in the decision to enter the market.
Interest in GoFundMe in Mexico was evident through high search volumes and user attempts to create campaigns within the country. The platform's popular appeals for medical expenses and emergency aid align with the needs in Mexico, a country with significant out-of-pocket healthcare costs and a history of natural disasters.
One such example was the response to Hurricane Otis, where the GoFundMe community raised $1.5 million for recovery efforts. However, prior to the expansion, Mexicans were unable to launch campaigns directly on the platform, leading to limitations in accessing financial support during crises.
Mexico, where approximately half of the population lives in poverty, often sees crowdfunding appeals for unexpected expenses, including medical emergencies and incidents like kidnapping or extortion. The expansion is expected to facilitate the flow of funds between the U.S. and Mexico, given the strong familial ties across the border.
While existing crowdfunding networks like Donadora have made strides in Mexico, GoFundMe's reach, brand recognition, pricing structure, and security measures position it as a significant player in the market. The platform charges a fee of 2.9% per transaction plus an additional five Mexican pesos, with provisions for full refunds within a year of donation.
The move was welcomed by Junueth Mejia Martell from Hispanics in Philanthropy, who sees it as a way to strengthen philanthropy in Mexico and provide an additional avenue for collective giving. The rollout in Mexico will inform GoFundMe's potential expansion into other Latin American countries where it currently does not operate.
Stripe will serve as the online payment provider for fundraisers in Mexico, who must meet specific criteria including age, a Mexican postal address, a local bank account, and a federal taxpayer registry number. GoFundMe aims to carefully assess the Mexican market before considering further expansion in Latin America.
