Nubank's Mexico Business Just Passed 15 Million Customers. Here's Why It's the Real Growth Story.

Nu Holdings (NYSE: NU) is an all-digital bank based in Brazil, but it's expanding into new markets, including the U.S.

It's most exciting growth story right now, though, is Mexico. It recently topped 15 million customers in the country and is now a top-three financial institution, but the growth is far from over. Here's why Nu Mexico is the real story right now, and why Nu stock looks priced to buy.

Disrupting traditional banking in Mexico

Nu began in Brazil, where it's headquartered and where it has already established itself as a major force in finance. While it's still adding new users at a steady pace and sees continued opportunity in upselling, its major growth is happening in Mexico.

Image source: Nu.

The bank started operating in Mexico in 2019, five years after its launch in Brazil. Over the past seven years, the user base has increased sevenfold, and average revenue per active user (ARPAC) has doubled. Its efficiency ratio, which measures how much it costs to produce revenue, decreased by 78 percentage points, and it's breaking even as of the 2026 first quarter.

Currently, it's adding 12,000 customers to the platform in Mexico every day, and it has provided 54% of Mexicans with their first credit cards. It recently rolled out NuFormer, a proprietary foundation model that evaluates credit card applications and provides approvals within seconds.

The runway just got longer

Nu was just approved for a full bank charter in Mexico, opening up the runway for much more growth. Up until now, it's been operating as a Sofipo, a status that allows it to offer savings accounts and debit cards and is meant to expand financial inclusion in the country. It plans to invest $4.2 billion in the venture through 2030 as it transforms into a proper bank, expanding its platform with digital payments and a broader product and service offering.

Mexico has the second-largest population in Latin America, behind Brazil, and is a massive, underbanked market that's moving toward digital finance.

Nu is making other moves as well. It recently got a new CFO, Rob Livingston, who comes from Visa North America. That could be preparation for the company's expansion into the U.S., which would be an entirely new opportunity.

Nu also recently authorized $1 billion in share repurchases. That's a vote of confidence from management, and it makes sense considering its bargain price, trading at less than 12 times next year's earnings. As it harnesses new opportunities, specifically in Mexico right now, Nu could be worth a look for the growth-oriented investor.

Jennifer Saibil has positions in Nu Holdings. The Motley Fool has positions in and recommends Nu Holdings and Visa. The Motley Fool has a disclosure policy.