Mexican gym chain partners with Belvo to improve payment infrastructure

Source: Belvo

Smart Fit, the leading gym chain in Mexico with over 420 gyms, announces a strategic partnership with Belvo, the leading Open Finance data and payments platform in Latin America.

The objective is to radically transform the payment experience for its 1.2 million users, implementing a more inclusive, efficient, and low-friction bank direct debit model, moving away from the issues generated by traditional payment methods.

The alliance comes at a crucial time: in Mexico, seven out of 10 people suffer from financial stress. Therefore, access to wellness services should not cause further anxiety. The problem is that the growing “recurrence economy” (subscriptions) clashes with a payment infrastructure that prioritises the credit card, excluding a large part of the Mexican population.

Smart Fit understood that, to continue leading in wellness, every touchpoint with its users must contribute to a high-quality 360 experience. Among these is the payment process. With this vision of continuous improvement, the chain decided to evolve its direct debit system and integrate Belvo’s platform.

Unlike the conventional banking scheme, Belvo allows users to link their accounts digitally, securely, and instantly to authorise their recurring payments. This advancement not only strengthens the relationship with users by offering a more agile and reliable process, but also reduces involuntary churn and provides the peace of mind of genuine “set it and forget it” payment.

“Wellness must be holistic. You cannot, as an industry, promote physical health if, at the same time, you are generating or perpetuating financial stress,” states Federica Gregorini, general manager of Belvo in Mexico.

“This alliance is Belvo’s central thesis in action: using financial technology as a bridge. We are connecting millions of Mexicans with the services they want and need, using the most fundamental payment rail they have: their own bank account. It is about democratising access to wellness, eliminating the barrier of whether your card was approved or not.”

The results of the implementation have been forceful. Smart Fit experienced explosive growth of 200% in successful month-over-month collection. More importantly, the chargeback rate – the metric that measures payment disputes and is the main headache for subscription businesses – was drastically reduced to an extraordinary level, positioning it below 1%.

“As market leaders, our obsession is the experience of our users. We identified that the moment of payment was a key point to continue elevating that experience,” commented Rodrigo San Pedro, finance director (CFO) of Smart Fit Mexico.

“We wanted a robust, secure solution that provided certainty to both the user and our business. In that search, we found in Belvo a direct debit model that better fits our vision for growth and the agility we need. With Belvo, we not only strengthened the stability of our collection with a minimal chargeback rate, but we also sent a clear and resounding message of inclusion to thousands of Mexicans: ‘You don’t need a credit card to be in shape’. That is a true enabler of well-being.”

Further reading: Belvo and Ualá partner to offer credit to Mexicans through employment data