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Startup Mx: Pacto
Pacto is a fintech platform that modernizes digital payments for the hospitality industry in Latin America, helping restaurants and bars transition away from cash to improve efficiency and security.
Mack Meyer
March 25, 2025
In partnership with
Pacto is a fintech platform that simplifies digital payments for the hospitality industry in Latin America. It enables restaurants and bars to transition from cash transactions, reducing inefficiencies and security risks while enhancing operational efficiency.
By offering seamless digital payment solutions, Pacto empowers businesses to streamline their financial operations and improve the customer experience.
Cash has been the default in hospitality for years, but it slows down operations and increases risk. We built Pacto to change that dynamic, making transactions faster, safer, and more transparent.
Pacto’s Inception Story
The concept for Pacto was born out of Ryan Croft’s deep involvement in the travel and mobility sectors, where he consistently observed how small businesses struggled with inefficient and outdated payment processes.
While cash remained the dominant form of transaction, it often led to operational delays, security vulnerabilities, and financial mismanagement. Seeing an opportunity to bring digital transformation to the hospitality industry, Croft and his team decided to develop a solution tailored to the needs of restaurants and bars.
We saw that restaurants and bars were still heavily reliant on cash, which created inefficiencies, security risks, and operational challenges. The goal with Pacto was simple—make digital payments seamless and accessible.
Pacto’s early development was driven by extensive market research and direct feedback from business owners.
The team focused on designing a system that would not only streamline transactions but also be easy to integrate into existing workflows. The platform evolved to address real-world pain points, ensuring that restaurants and bars could transition smoothly from cash-based systems to digital solutions.
Founders
How Pacto Works
Pacto operates as a smart payment platform designed to modernize the transaction experience for banks, restaurants, and bars.
By replacing traditional card readers with software-driven solutions, Pacto enhances flexibility, security, and operational efficiency. The platform integrates both mobile and point-of-sale (POS) payments, ensuring businesses can transition smoothly into the digital economy.
Frictionless Payments: Pacto streamlines digital transactions, eliminating cash-related inefficiencies and security risks.
Data-Driven Insights: The platform generates strategic data to help banks make informed decisions and optimize growth.
Bank Partnerships: Pacto collaborates with financial institutions to enhance their digital payment offerings.
Seamless Integration: Businesses can easily adopt Pacto’s technology without overhauling existing operations.
Banks need more than just new hardware—they need a smarter way to onboard and support businesses in this digital landscape. Those that adapt will not only retain their clients but gain a real competitive edge.
By modernizing payment systems, Pacto empowers banks and businesses to enhance financial operations, drive digital adoption, and ensure long-term sustainability in an increasingly cashless economy.
Future Plans and Growth
Pacto is focused on scaling its presence across Latin America by establishing strong partnerships with financial institutions, restaurants, and hospitality businesses. The company is committed to driving widespread digital payment adoption while ensuring that its platform remains intuitive and adaptable to market needs. Future developments include refining the user experience, integrating more local payment methods, and leveraging data analytics to provide businesses with valuable financial insights.
The Latin American market is unique—there’s huge potential, but also deep-seated habits around cash. Our growth depends on balancing innovation with real-world usability. We’re building solutions that fit into existing workflows, making the transition as seamless as possible.
The transition from cash to digital in hospitality is not just about replacing physical money—it's about reimagining the entire payment experience. By focusing on seamless integration, Pacto ensures that financial transactions become effortless, benefiting both businesses and customers.
We’re not just replacing cash with digital; we’re rethinking how payments work in hospitality, making them frictionless for both businesses and customers. The future is about creating smarter financial ecosystems where transactions, analytics, and business operations are fully integrated.
Looking ahead, Pacto aims to enhance its ecosystem further, incorporating real-time data analytics and automated financial tools to empower hospitality businesses with better decision-making capabilities.
The Evolution of Digital Payments in Hospitality
As digital payments gain traction in Latin America, Pacto is at the forefront of transforming how restaurants and bars handle financial transactions. While the industry traditionally relied on cash, businesses are now recognizing the benefits of faster, safer, and more efficient payment solutions.
Pacto’s approach is not just about replacing cash but about fundamentally improving the financial infrastructure of hospitality businesses.
Hospitality businesses don’t just need a way to accept digital payments; they need a solution that fits seamlessly into their operations. Our goal is to make the transition as effortless as possible, removing barriers to adoption.
Initially, many restaurant owners viewed digital payments as an unnecessary luxury rather than a crucial upgrade. However, as they began to experience firsthand the improvements in efficiency and security, their perspectives started to shift.
For many restaurant owners, digital payments seemed like a luxury rather than a necessity. Now, as they see the efficiency gains and security benefits, they realize it’s a game-changer for their business.
This transformation has led to broader adoption across the hospitality sector, with businesses now recognizing the value of streamlined transactions and enhanced financial management.
Funding
2023, $6M (Seed) led by DILA Capital, including Polymath Ventures, Grupo Fame, FEMSA Ventures, 500 Global, Georgetown Angel Investor Network and other angel investors.
2022, $2M (Pre-Seed) including Tnt Ventures, Lightspeed Venture Partners, LEAP Global Partners, Hive Hatch and other angel investors.
Initial Challenges and Misconceptions
Adopting digital payments in the hospitality sector proved to be a significant hurdle, as many businesses were deeply ingrained in cash-based operations. Resistance stemmed from concerns over transaction fees, internet reliability, and the perceived complexity of transitioning to digital systems.
Pacto had to actively educate restaurant owners about the long-term benefits of efficiency, security, and streamlined financial management.
“We had to overcome the mindset that cash was king. Many restaurant owners worried about transaction fees and connectivity issues, so education was key.” - Ryan Croft
Another misconception was that digital payments were only relevant to high-end establishments, when in reality, small and medium-sized businesses stood to gain the most from operational improvements.
“People think digital payments are only for high-end establishments. In reality, small and medium-sized businesses benefit the most by improving efficiency and security.” - Ryan Croft
To address these concerns, Pacto focused on creating an intuitive and reliable system while demonstrating clear advantages through real-world use cases. Overcoming skepticism required not just technological innovation but also cultural and behavioral shifts in the industry.
Market Opportunity
The digital payments landscape in Latin America is experiencing significant growth, presenting substantial opportunities for platforms like Pacto. In Mexico, the payments market, including digital wallets, is projected to expand from $103 billion in 2023 to $167 billion by 2028, reflecting a compound annual growth rate (CAGR) of approximately 10%.
Additionally, contactless payments in Mexico surged by 150% over the past year, indicating a growing consumer shift toward innovative payment solutions.
Across Latin America, the adoption of digital payments is accelerating. Notably, 92% of small businesses in the region now accept digital payments, signaling a move away from cash transactions. Moreover, the e-commerce market in Latin America is projected to reach $256 billion by 2026, nearly doubling its size from 2021.
This rapid digitalization underscores the demand for fintech solutions that streamline transactions, positioning Pacto to effectively meet the evolving needs of businesses and consumers.
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