In early 2024, Chile's fintech scene sees a major shift with the strategic alliance. This partnership is set to refine the bill payment experience in the country.

Neat Pagos, a leading online platform for credit, debit, and prepaid card bill payments in Chile, steps into a new phase by integrating Tapi's infrastructure. This move is expected to simplify and make bill payments more efficient for Neat Pagos users.

With Tapi's integration, Neat Pagos users will experience an enhanced and more convenient method for managing recurring payments. This collaboration aims to automate bill payments, significantly improving the user experience.

This alliance underscores both companies' dedication to transforming payment experiences in Latin America, showcasing a commitment to innovation and service excellence in Chile's payment solutions sector.

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1. Nubank's High-Interest Savings Account in Colombia Nubank introduces a high-yield savings account in Colombia, promising no management fees and free transfers. This marks a significant step for Nubank in the Colombian market, offering competitive financial products to challenge traditional banking. — Latam Fintech Hub
   

2. Klar Reaches 3 Million Customers Klar, a fintech company in Mexico, has achieved a significant milestone by reaching 3 million customers. This achievement underscores the rapid growth and potential of fintech solutions in the Latin American market. — El Financiero

3. African Fintech's Ascendancy The African fintech industry is on the rise, driven by a growing demand for digital payment solutions and investment services. This trend underscores Africa's emerging role in the global fintech scene. — TechCrunch
   

4. OKTO Drives LatAm's Instant Payments OKTO is transforming Latin America's financial landscape with instant pay-in and payout solutions. This innovation is pivotal for the region's growth in the digital payment sector. — SBC News
   

5. Cleva's $1.5M Pre-Seed Funding Nigerian fintech startup Cleva, founded by Stripe and AWS alumni, has raised $1.5 million in pre-seed funding. The startup aims to address the challenges of hyperinflation and international payments in Africa. This funding signifies confidence in Cleva's innovative approach to financial challenges in emerging markets. — People of Color in Tech
   

6. Kuda's $20M Raise and Milestone Miss African neobank Kuda raised $20 million at a flat valuation last year but missed its user milestone projection by 3 million. This development points to both the challenges and opportunities in the African fintech landscape. — TechCrunch
   

7. Quantinuum's $300M Raise at $5B Valuation Quantum computing company Quantinuum raised $300 million at a $5 billion valuation. This funding highlights the growing investor interest in quantum computing technologies and their potential applications. — Crunchbase News
   

8. PayPal and Samsung Invest in Prometeo as part of a $13 million funding round. This investment, led by Antler Eelevate, with support from DN Capital and others, bolsters Prometeo's position in the region. Prometeo offers a unified banking API, integrating over 283 financial institutions across 10 countries in Latin America, aiming to standardize financial technology infrastructures across these diverse markets.

   — Finextra
   

9. Juancho Te Presta Achieves 20% Growth in 2023 Colombian fintech Juancho Te Presta, focusing on underbanked individuals and entrepreneurs, disbursed over 28,000 loans totaling about $52 million in four years. In 2023, the company saw a 20% revenue growth with over 25,000 customers. Notably, about 60% of its clients are women, with 18% being single mothers, highlighting its focus on financial inclusivity. The company's positive credit reporting and expansion in Colombia signal a significant impact on the financial landscape. — Latam Fintech Hub

Deals

1. Pliant / $108.8M Pliant assists companies in issuing adaptable physical and virtual credit cards, tailored to specific business needs and processes.
   

2. 10X Banking / $44,5M 10X Banking is a financial technology company focused on innovations in the banking sector. Main investors include BlackRock and JPMorgan Chase & Co.
   

3. Carmoola / $19,622,339 Carmoola offers a streamlined car finance process, enabling users to get a budget in 60 seconds and purchase cars from any location. Investors include AlleyCorp, InMotion Ventures, QED Investors, u.ventures, and VentureFriends.
   

4. Prometeo / $13M Prometeo provides an open banking platform that offers automated access to banking information and payments via a unified API. Key investors are Antler Elevate, Cometa, DN Capital, Magma Partners, PayPal Ventures, and Samsung NEXT.
   

5. WaveBL / $11M WaveBL is revolutionizing trust in trade. The main investor in this round is NewRoad Capital Partners. ​​
   

6. Pliant / $8,7M Specializing in adaptable physical and virtual credit cards for businesses, Pliant streamlines corporate payment processes. Investors include ALSTIN Capital, Molten Ventures, Motive Ventures, and SBI Investment.
   

7. Applause / $7M Applause is an innovative financial incentive app designed to benefit service workers by increasing their earnings and speeding up payments.
   

8. Rivero / $6,9M Rivero simplifies card payment operations. The main investors are 6 Degrees Capital, Inference Partners, Kraken Ventures, PostFinance, Robert Kraal, and Seed X Liechtenstein.
   

9. Pier / $2,4M Pier develops an API-focused approach to launching credit products. Key investors include ACME Capital, HorizonVC, Liquid 2 Ventures, and Y Combinator.
   

10. Karma Wallet / $2M A fintech startup, Karma Wallet leverages advanced technology and impact data to foster sustainability. The main investor for this round is Triangle Tweener Fund.
    

11. Mylapay / $553K Mylapay, a fintech startup, is redefining the future of payments. Investors include 77 Capital, CDM Capital, and Saison Capital.
    

12. FinLocker FinLocker offers a personal financial assistant tool, facilitating loans and financial transactions. The notable investor is Radian Group. (Funding amount not available) ​

24 million SMEs in LATAM use at least one fintech solution

In the dynamic business environment of Latin America, small and medium-sized enterprises (SMEs) are a fundamental pillar of the economy. According to the KoreFusion report “LATAM SME-Focused Fintechs,” 98% of businesses in LATAM are SMEs, equating to approximately 65 million companies.This landscape offers vast fertile ground for fintech intervention and growth, which have started to play a crucial role in these businesses’ digital and financial transformation.

SMEs in Latin America make up most of the business fabric and are a crucial driver for employment and production. Despite their importance, these businesses face a significant challenge: a financing deficit estimated at USD $1 trillion. This gap has created a unique opportunity for fintechs, emerging as innovative solutions to overcome traditional barriers to accessing financial services.

Adoption of fintech solutions in SMEs

Currently, around 24 million SMEs in LATAM use at least one fintech solution, with digital payment acceptance being the most prevalent. This data reveals a growing trend towards financial digitalization, though there is still a long way to go. The latent demand for fintech services is significant, with an estimated 46.4 million SMEs susceptible to adopting these technologies.

Digital transformation in the SME sector manifests in various ways. Brazil and Chile lead this change, showing advanced adoption of digital payments and Software as a Service (SaaS)-based solutions. On the other hand, countries like Mexico and Colombia are making progress, primarily supported by mandatory electronic invoicing, while other regions are still in the early stages of their digital capacity.

Vía Contxto

Quick News

Citigroup invests in Colombian startup Supra to boost international payments

Citigroup announced its leadership in an investment round in Supra. This Colombian startup is positioning itself as an innovative solution to the challenges of international payments for companies in Colombia and Latin America.

• This investment also included participation from Far Out Ventures and H20 Capital.

• This new capital injected by Citi promises to expand operations, strengthening its role as a payment aggregator

• The strategic alliance with Market Exchange Intermediaries (IMC) and other authorized payment service providers is a step forward in its goal to facilitate international trade. (Contxto)

Bitso Business Records USD $8 Billion in Transactions

Bitso managed to gather a user base of 8 million on its cryptocurrency financial services platform in Latin America, recording an annual transaction volume of USD$8 billion.

• Bitso Business increased its annual transaction volume by 60%, with Mexico contributing significantly, as over 50% of the platform’s users are in this country.

• For 2024, Bitso has three goals: improve the quality and speed of product generation, significantly increase B2B business income, and strengthen internal processes, as well as organizational culture. (dplnews)

Dollarize Wins WealthTech of the Year

At the US FinTech Awards, the fintech that simplifies the opening of dollar accounts in the United States received the highest distinction.

• This recognition is granted by FinTech Intel, which highlights the achievements of leaders and companies in the ecosystem.

• Dollarize set the goal of reaching 1 million customers in the next three years and expanding its operations to Central America, Asia, and Africa.

• The application allows opening an account in just five minutes (according to the company), with an initial deposit of one dollar and loading funds from a local currency bank account or credit card. (Prensario TI Latin America)

LatAm: Leader in the adoption of Cryptoassets

A report from Circle indicates that 51% of Latin American consumers already use cryptocurrencies for purchases, eliminating the need for traditional cash.

• Between mid-2021 and 2022, Latin America handled USD $562 million in cryptocurrency.

• Beyond Bitcoin and Ethereum, a third of users in Latin America are already using stablecoins in their daily operations.

• Despite lacking conventional banking services, Latin Americans have mobile and digital technology. (Circle)

Bitcoin Mercado Captures R$40 Million in Investment Offers in Brazil

This volume is 16 times higher than the R$2.5 million that Mercado Bitcoin raised in 2022.

• The company’s information is consolidated on the MB Startups platform and can be accessed, along with quarterly updated financial statements.

• The platform allows investors to connect and collaborate with the founder in the operation’s development. (Uol)

Mercado de Recebíveis Completes First Funding Round

The investment was led by Urca Angels, with participation from Inês Corrêa Souza of Magalu and Marcelo Bella of Letsbank.

• The round amount was not disclosed, but the Brazilian fintech is already valued at USD$14 million one year after its foundation.

• Mercado de Recebíveis specializes in improving the financial experience at the Point of Sale (POS).

• The startup has four significant clients, up to 200,000 suppliers, and sales points. (Tekiosmag)

Kapital raises USD $165 million in financing

Kapital closed a US$40 million Series B round and US$125 million debt financing to consolidate its AI-powered platform for SMEs.

• This round was led by Tribe Capital and Cervin Ventures, Tru Arrow, MS&AD Ventures, and Alumni Ventures, among others.

• Kapital will allocate these funds to develop its AI-powered technology platform to strengthen its financial offering and expand its product range to provide better data analytics to its customers.

• Currently has 80,000 SMEs in Mexico, Colombia and Peru and bought Banco Autofin Mexico. Its goal is to be a global bank. (Tekiosmag)

Dapta closes USD $1M round for U.S. expansion

Dapta just closed a USD $1 million pre-seed round from Paramo Partners, Fen Ventures, Kuiper VC, Invariantes Fund, LatinLeap, and 500 Startups, plus a flock of angels.

• Dapta will use these funds to spearhead its commercialization strategy.

• Dapta focused on serving three main verticals in particularly urgent need of API support: financial services, online retail, and healthcare. (LatamFintech)

High interest rates are the main obstacle for fintech

The main impediment to financial technology (fintech) companies in Latin America is obtaining financing to continue their operations and carry out planned expansions.

• According to the State of Fintech Latin America 2023 report, high-interest rates persist as the main obstacle for 44.5% of the firms surveyed.

• 77.8% of firms surveyed see challenges in securing future financing.

• 57.1% of firms that provide financial technology also observe a complex funding environment. (El Economista)

Iugu raises USD $14.3M in new investment round

On this occasion, the transaction was led by Bradesco BBI, a former investor in the company.

• Iugu will use the funds raised in this financing round to improve the services it provides to its customers in terms of anticipating credit card receivables.

• The startup has created tools that connect technology, flexibility, and security to offer, in a single platform, agility, and confidence in financial processes. (El Referente)

Fintech Education

1. BUniversity of Hong Kong: Blockchain and FinTech: Basics, Applications, and Limitations. Understand the design rationale of blockchain technology and its emerging platforms and applications and uncover the limitations and opportunities enabled by blockchain applications, particularly as they relate to finance.

2. Blockchain: Fundamentals and applications for business optimization. You will understand the general functioning of blockchain technology and its differences: private, public, and hybrid.

3. Innovation in Finance: Fintech and Blockchain. It encompasses concepts such as artificial intelligence, open banking, APIs, and neobanks, shaping new ecosystems. The online content allows you to adapt your training process to your work and personal life.

Food for Thought

1. The middle class LOVES cryptocurrencies

   In Latin America, the demand for #cryptocurrencies has increased, and there are several reasons why this is happening. Below, our specialist, Iñaki Apezteguia, tells you the profile of the crypto user in our region.

Jobs

Product Head @Atrato (Remote)

Director, Customer Success, Brazil @Circle (Remote)

Product Owner Lead @Prex (Remote)

Visa's acquisition of Pismo is now official

The General Superintendence of the Administrative Council for Economic Defense (Cade) of Brazil has given the green light to acquire fintech Pismo by Visa in a deal valued at USD $1 billion. This decision, announced at the end of June this year, has been established as a strategic move in the growing Latin American fintech market.

The general superintendent of Cade, Alexandre Barreto, endorsed the purchase by accepting the arguments presented by Visa. The company assured the transaction would not compromise market competition, as the acquired assets complement its current operations. The approval process began at the end of August and has successfully concluded with this resolution.

“Pismo’s solutions facilitate the processing of payment modalities such as those of Visa and Mastercard”, stated Visa in a communication to Cade, highlighting the synergy between the operations of both companies.

Pismo’s cloud-based platform manages over 70 million accounts and handles transactions worth over USD $200 billion annually. This acquisition uniquely positions Visa to offer fundamental banking capabilities and processing services for debit, prepaid, credit, and commercial card issuers through native cloud APIs.

Vía Contxto

Quick News

Somapay and Fortes Tecnologia launch FortesPay in Brazil

Somapay, a fintech company based in Ceará specializing in payroll automation, announced a partnership with Fortes Tecnologia, a software accounting company located in Fortaleza (CE).

• The goal is to integrate payroll management by Human Resources and provide banking solutions to employees.

• Fortes‘ solutions have handled processing and closing employee payments, transmitted the information to the government through eSocial, and offered business management tools.

• In addition to facilitating the free opening of digital accounts with SomaPay, the integration offers a variety of additional services, such as payroll loans, insurance, transfers, and access to a marketplace with popular apps like Uber, iFood, Spotify, and Netflix, as well as discounts at pharmacies. (Contxto)

Does Walmart affect financial inclusion in Chile?

Tenpo has fully launched an aggressive strategy against Walmart, accusing the American chain of not allowing the use of prepaid cards in its physical stores and e-commerce.

• The digital platform, with over 2.3 million users, accuses the American chain of causing unjustified disruption in the payment industry in Chile, affecting financial inclusion in the South American country.

• Walmart and Falabella.com are the only major retailers not accepting this card type.

• Since 2016, prepaid cards have been regulated in Chile by the Financial Market Commission and the Central Bank of Chile. (Contxto)

Itaú Unibanco launches new cryptocurrency trading service

Itaú Unibanco has launched a new cryptocurrency trading service, positioning itself as a pioneer in the sector within Latin America.

• This move could catalyze a greater integration of cryptocurrencies in conventional financial services in Brazil and across the region.

• The Brazilian bank’s foray into the cryptocurrency market begins with the offering of Bitcoin and Ether, the two most globally recognized cryptos.

• The brokerage and investment firm XP closed its cryptocurrency services, while PicPay, part of the J&F conglomerate that also controls JBS, cited regulatory uncertainties as the reason for its withdrawal. (Contxto)

Jeeves 2.0 is the new stage of fintech to conquer Brazil

Jeeves is entering a new expansion phase, with Brazil at the forefront of its priorities.

• Jeeves 2.0 will bring new features crucial for the company’s current customer base, mainly medium and large enterprises.

• The new phase involves implementing layers of management and banking functionalities, all from a cross-border perspective

• Jeeves plans to offer the ability to view accounts from different countries in one place through its platform. (Contxto)

Circle and Nubank forge alliance to boost adoption of USDC Stablecoin in Brazil

Circle, the company known for developing and managing the stablecoin USDC, has announced a strategic alliance with Nubank, the largest neobank in Brazil.

• This collaboration aims primarily to boost the adoption of USDC in Brazil, a country already distinguished in Latin America for its rapid growth in cryptocurrencies, particularly stablecoins.

• In the last year, the volume of transactions made with Tether (USDT), another popular stablecoin, represented almost 80% of all cryptocurrency transfers in Brazil.

• The integration of USDC into the Nubank platform not only opens the door to more local customers but, according to Thomaz Fortes, general director of Nubank Cripto, also offers opportunities to integrate Nubank Cripto with other available financial services. (Contxto)

Minka announces it will reach 100 million real-time transactions in Colombia by 2023

The 251% growth compared to 2022, and the 100 million transfers reached this year, according to data from the fintech Minka, show that real-time payments in Colombia have a promising future for the country 2024.

• Through Transfiya, Minka has made it possible for transactions to be completed in less than 20 seconds.

• ACH's Transfiya, unique in the country, was recognized by USAID as the Digi Award winner for developing a payment system that enables low-income groups to conduct real-time financial transactions.

• Minka is currently building similar systems in the Dominican Republic and Peru. (LatamFintech)

Fintech is creating 26,000 jobs in Colombia

According to the 'Fintech Snapshot 2023-2' report, more than 20,000 jobs are generated in this sector in Colombia.

• The report was unveiled during the 13th version of the Colombia 4.0 event.

• According to Colombia Fintech's estimates, the sector generates 26,814 jobs in the country.

• Around 45 percent of fintechs with between 20 and 249 employees have been in the Colombian market for between 6 and 20 years. (El Tiempo)

Mercado Libre to expand its credit offering in Mexico with the support of Citibank

Mercado Libre announced it will expand its credit offerings to SMEs in Mexico and Brazil.

• The credit extension will be possible thanks to the recent investment of USD $466 million received by Mercado Pago.

• From its credit subsidiary, the company reports that, during the third quarter of this year, its credit card business grew by 22.6% in Latin America, reaching US$3.4 billion in profits.

• 20% of total revenues are originated for sellers inside and outside the marketplace throughout the region. (Marketing4All)

Solvento closed USD $50 million investment

Solvento, the financial technology company developing payment and credit infrastructure for the Latin American freight transportation sector, announced today that it has closed a $50mdd credit facility with Lendable and a round led by Quona Capital.

• The round also included Dynamo Ventures, Ironspring Ventures, Proeza Ventures, and Zenda VC participation.

• Solvento Audita uses APIs to integrate into any existing software, capable of reading and detecting any document and validating, a process that is traditionally done manually, even by the largest shippers and brokers.

• Some companies already seeing the effects of Solvento Audita include one of the world's largest shippers, Nestlé, and Latin America's largest last-mile logistics operator, 99 Minutes. (LatamFintech)

Tapi and Uttopia seal alliance to facilitate payment of services and account openings in dollars

Tapi, the Argentine startup that seeks to transform payment experiences in Latin America, joined forces with Uttopia to facilitate and strengthen its platform in Argentina, Mexico, Colombia, and Chile.

• This alliance will allow Uttopia users to access service payments in the four countries, including water, gas, and electricity providers, educational establishments, prepaid medicine, and credit cards.

• Another benefit of this agreement is the global payments without limits, where Utoppia users can pay for services in Argentina, Chile, Colombia and Mexico without the need to use multiple payment methods or multiple accounts. (iProUp)

Fintech Education

1. Máster en Big Data y Business Intelligence. Through the complete syllabus designed by experts, you acquire all the knowledge and skills to know in-depth the methods, techniques, and data analysis tools. As an advanced user, you also learn to use business intelligence and big data technologies. At the end of it, you can carry out an efficient exploitation of data in a professional manner.

2. The University of Texas at Austin: Fintech: AI & Machine Learning in the Financial Industry. This is the third in a series of courses on financial technology, also called Fintech. This course provides an overview of machine learning applications in finance.

3. FinTech for Finance and Business Leaders. The practical skills needed to understand and implement adequate cyber security, machine learning using Python and robotic processes, and intelligent automation in the finance function.

Food for Thought

1. Empowering the Future: Redefining the Vision for Fintech in Latin America

   Redefining the Vision of Fintech in LATAM with leading experts, including Ximena Azcuy, to analyze current trends, share success stories and challenges in the regional financial ecosystem, and explore the crucial role of innovation and technology.

Jobs

Head de Crédito - Fintech @Mottu (Location)

Chief of Staff @Clara (Remote)

Sr. Director - Customer Experience, Banking & Fintech @Sutherland (Remote)

Banco Security and Backbase join forces to promote digital banking

Grupo Security has a four-year digital investment strategy amounting to USD$50 million, implementing various actions to strengthen its operations and improve operational efficiency in business digitalization.

In this line of action, Banco Security, a subsidiary of the financial group, entered into an agreement with Backbase, a prominent fintech globally, specializing in solutions for digital banking.

This partnership aims to boost the digital experience, strengthen the marketing of additional products, and increase business efficiency.

Through integrating Backbase’s Retail Banking solution, Banco Security is renewing its digital platforms to provide personalized experiences to its clients.

“Together, we hope to set new standards in the banking industry, putting the customer at the center of everything we do,” explained Nicolás Perdomo, Regional Sales Director of Backbase for Latin America and the Caribbean.

Vía Contxto

Quick News

Somapay and Fortes Tecnologia launch FortesPay in Brazil

Somapay, a fintech company based in Ceará specializing in payroll automation, announced a partnership with Fortes Tecnologia, a software accounting company located in Fortaleza (CE).

• The goal is to integrate payroll management by Human Resources and provide banking solutions to employees.

• Fortes‘ solutions have handled processing and closing employee payments, transmitted the information to the government through eSocial, and offered business management tools.

• In addition to facilitating the free opening of digital accounts with SomaPay, the integration offers a variety of additional services, such as payroll loans, insurance, transfers, and access to a marketplace with popular apps like Uber, iFood, Spotify, and Netflix, as well as discounts at pharmacies. (Contxto)

Nubank reports revenues of USD $2.1 billion in the third quarter of 2023 and reached 90 million customers

In the third quarter of 2023, Nubank revealed outstanding financial results, reporting record revenues of USD $2.1 billion. Net income reached USD $303 million, with an adjusted net income of USD $356 million.

• According to Nubank’s founder and CEO, David Vélez, the company reached 90 million customers in October.

• The cost per customer remained below the dollar level, and the efficiency ratio improved by 40 basis points in the quarter, reaching 35%.

• in Mexico, the customer base grew to 4.3 million, driven by the success of the Cuenta Nu savings product and the member-get-member program. In Colombia, the customer base expanded to around 800,000, anticipating accelerated growth with the launch of Cuenta Nu. (Contxto)

ACI Worldwide and Mexipay join forces to transform payments in Mexico

ACI Worldwide, a global leader in mission-critical real-time payment software, has partnered with the fintech company Mexipay to drive innovation in payments in that country.

• Mexipay will use ACI’s enterprise payment platform to introduce ISO 20022 real-time payments and other innovative payment services in Mexico.

• Mexico has stood out as one of the pioneers in adopting real-time payments, thanks to its Electronic Interbank Payment System, which was implemented in 2004.

• According to ACI’s Prime Time for Real-Time 2023 report, Mexico recorded an average of 3.9 real-time monthly transactions per person in 2022, ranking third in the Latin American region and twenty-seventh globally (Contxto)

Colaboramed secures USD $1 million investment from U-Payments

Chilean Fintech Colaboramed has reached a significant milestone in its journey towards success by securing a USD$1 million investment, representing 12% ownership of the company and valuing it at a total of USD$8.8 million.

• This financial achievement was made possible through AMOL's innovative health-focused prepaid card, designed to simplify health copayment payments.

• U-Payments has decided to support this promising project, recognizing its potential to become the next ‘unicorn‘ in the market.

• AMOL’s entry into the market is significant news for Chileans seeking financial solutions for their health needs. (Contxto)

DiiMO closes a USD $1.2 million investment to drive financial inclusion in Central America

DiiMO celebrates the success of its recent Pre-Series A financing round, in which it raised a total of USD $1.2 million, composed of equity and a line of credit.

• This investment aims to expand DiiMO’s regional influence and strengthen its commitment to financial inclusion.

• Endless Ventures and HAguila Investments joined as new shareholders, marking an important milestone in the fintech’s journey.

• This successful funding round marks a significant advancement in the Central American startup landscape, where raising funds of such magnitude is an achievement few companies have attained. (Contxto)

Contbank opens investment round to raise BRL $6.25 million

Contbank, a Brazilian fintech focused on credit solutions for SMEs, has initiated an investment round that could reach BRL$6.25 million. The equity crowdfunding campaign is available on Captable, with investments starting from BRL $1,000.

• According to Captable, GJL Real Estate, a German investment company with global operations, is anchoring the offering to strengthen its investment portfolio in Latin America.

• The entry of the European group was facilitated by Ilumina Private Advisors, the company’s representative in Brazil.

• So far, Captable has surpassed BRL $100 million in crowdfunding. (Contxto)

Clara launches payment account in Brazil

Clara has introduced a payment account in Brazil, thus expanding its range of products that includes corporate cards and expense management solutions.

• This new offering allows Brazilian customers to access various payment methods, such as bank receipts and express bank transfers.

• Clara aims to facilitate transactions worth BRL$6.000 billion by 2024 with the launch of this account.

• This expansion strategy aims to consolidate Clara’s presence in Brazil, the region's largest economy, to gain a significant share in the B2B payment market. (Contxto)

Webull acquires Flink to enter the Mexican investment market

This acquisition includes Flink and involves the purchase of Vifaru Casa de Bolsa, a Mexican brokerage that Flink agreed to acquire in May 2022.

• The financial terms of the deal were not disclosed.

• The merger promises to retain Flink’s existing services while integrating Webull’s advanced technology.

• Upcoming plans involve rolling out local investment and cash management products in Mexico. (Contxto)

Moonflow closes its first round of investment for USD$700,000

Moonflow has successfully concluded its first financing round of USD$700,000, surpassing the initial goal.

• Recognized Latin American funds such as Magma Partners, Salkantay Ventures, Amador Holdings, and Morro Ventures participated in this round.

• The primary purpose of this round was to provide the necessary financial resources to boost the acquisition of new clients and strengthen the capabilities of its collections management platform.

• the company has established itself in 10 regional countries, including Brazil. (Contxto)

Konsi closes an R $3 million investment in a Seed round led by Valutia

Konsi, a startup dedicated to enabling comparative analysis and reducing interest rates on payroll loans, has announced a R$ 3 million Seed round led by investment firm Valutia.

• The investment marks a significant step towards the company’s growth and expansion to transform the payroll loan landscape in Brazil.

• One of the company’s key objectives is to extend its services to all federal, state, and municipal employees in Brazilian capitals by 2025.

• Konsi already provides services to state employees in various Brazilian states, including Amazonas, Bahia, Mato Grosso, and São Paulo. (Contxto)

Fintech Education

1. BUniversity of Hong Kong: Blockchain and FinTech: Basics, Applications, and Limitations. Understand the design rationale of blockchain technology and its emerging platforms and applications and uncover the limitations and opportunities enabled by blockchain applications, particularly as they relate to finance.

2. Blockchain: Fundamentals and applications for business optimization. You will understand the general functioning of blockchain technology and its differences: private, public, and hybrid.

3. Innovation in Finance: Fintech and Blockchain. It encompasses concepts such as artificial intelligence, open banking, APIs, and neobanks, shaping new ecosystems. The online content allows you to adapt your training process to your work and personal life.

Food for Thought

1. The fintech revolution in Latin America

   Horacio Arredondo, dean of EGADE, and Rodrigo Andrade, CEO of PeiGo, talk about the fintech revolution in Ecuador and the rest of the region. A Podcast by Tec Sounds.

Jobs

Product Owner Lead – Argentina @Prex (Remote)

Head of Fraude @Global66 (Location)

Head of product strategy – Perú @Galgo (Remote)

Fintech faces the challenge of protecting users in LATAM

A few days ago, Colombian fintech RapiCredit secured a USD$7 million debt investment from the U.S. fund Almavest. This company acquired part of the debt accumulated by the startup.

RapiCredit specializes in providing microcredits to individuals without access to banking services.

The fintech has provided credit opportunities to over 550,000 unbanked Colombians, and 36% of them become eligible to enter the traditional financial system after obtaining a loan from the company.

This type of fintech and its business model has been successful throughout Latin America, becoming a real opportunity for people without bank credit through these startups.

Vía Contxto

Quick News

Fintech Astride obtains BRL $3 million to boost investments

Astride received an investment of BRL $3 million from family, friends, and angel investors to enhance its technology and expand its operations in the country.

• Astride decided to intensify its presence in Brazil.

• The company helps investors establish and maintain offshore companies to manage their investments outside of Brazil.

• According to information from B3, the Brazilian stock exchange, the number of individual accounts registered almost doubled during the first year of the pandemic, adding 1.5 million new investors. (Contxto)

Nubank reports revenues of USD $2.1 billion in the third quarter of 2023 and reached 90 million customers

In the third quarter of 2023, Nubank revealed outstanding financial results, reporting record revenues of USD $2.1 billion. Net income reached USD $303 million, with an adjusted net income of USD $356 million.

• According to Nubank’s founder and CEO, David Vélez, the company reached 90 million customers in October.

• The cost per customer remained below the dollar level, and the efficiency ratio improved by 40 basis points in the quarter, reaching 35%.

• in Mexico, the customer base grew to 4.3 million, driven by the success of the Cuenta Nu savings product and the member-get-member program. In Colombia, the customer base expanded to around 800,000, anticipating accelerated growth with the launch of Cuenta Nu. (Contxto)

Chile approves the OECD Crypto Asset Information Framework (CARF) to strengthen fiscal transparency

In Chile, the Ministry of Finance announced the approval of the Crypto Asset Information Framework (CARF) by the OECD Committee on Fiscal Affairs.

• This new standard responds to the growing digitization of financial markets and the rise of crypto assets, aiming to preserve advances in global fiscal transparency.

• The CARF, based on the Common Reporting Standard (CRS), aims to facilitate its implementation in various jurisdictions and tax administrations.

• The Ministry of Finance reported that several countries and territories signed the commitment agreement to the OECD, including Armenia, Australia, Austria, Brazil, Canada, Chile, Spain, and the United States. (Contxto)

RapiCredit raised USD $7 million in debt investment

RapiCredit, specializing in providing microloans to individuals without access to banking services, has secured a USD $7 million debt investment from the U.S. fund Almavest.

• This firm acquired part of the debt accumulated by the fintech.

• RapiCredit has provided credit opportunities to more than 550 thousand unbanked Colombians, with 36% becoming eligible to enter the traditional financial system after obtaining a loan from the company.

• RapiCredit has a profitability of 18%, equivalent to a financial margin of COP $4.5 million. (Contxto)

Hapi raises USD $1.6 million to democratize the stock market in LatAm

The emerging company Hapi, headquartered in San Francisco with Peruvian roots, has secured significant funding of USD $1.6 million to strengthen its presence in the Latin American stock market.

• This fundraising involved participation from various investment entities, including Utec Ventures, Unpopular Ventures, Softeq Ventures, and Mural Capital.

• The primary commitment of Hapi is to facilitate and make stock market investment more accessible for the people of Latin America.

• Hapi is an application focused on purchasing and selling stocks in the U.S. stock market, specifically designed for clients in Latin America. (Contxto)

Impact of Milei’s victory in Argentina on the crypto exchange rate

The triumph of Javier Milei in the presidential elections in Argentina generated a significant increase in the quotation of the crypto dollar, which experienced a rise of $160, reaching $1150.

• This increase is attributed to speculation about the possible dollarization of the Argentine economy, a proposal highlighted by the president-elect during the campaign.

• The rise of the crypto dollar generated expectations of pressure on parallel currencies for Tuesday’s exchange day, while on Monday, as it was a holiday, the expectation of devaluation was contained. (Contxto)

Ripio drives Web3 innovation with nine startups selected for its acceleration program in LatAm

Ripio announces its Web3 acceleration program in Latin America, highlighting startups from Brazil, Argentina, and Uruguay among the selected.

• After evaluating 70 projects from 12 countries, Trexx, a Brazilian startup dedicated to blockchain-based games, has been among the nine selected in the program’s inaugural edition. In this next step, Ripio will provide mentorship and support for implementing LaChain technology in Trexx’s game development project.

• The other eight startups selected in this program are diverse projects such as the CryptoPagos, Fungi Protocol, Paydece, Latam Wap Dex, Simple Pago, Ultradrop and Talo Pay.

• Ripio has established itself as one of Latin America’s leading crypto-asset platforms, with a user base exceeding 2 million and a monthly transaction volume exceeding USD $200 million. (Contxto)

Global66 and FC Bayern Munich seek Latin American talent in an initiative for young footballers

Global66 and FC Bayern Munich launch an initiative for young Latin American footballers. They offer a unique opportunity to train in Munich, combining sports and technology to enhance talents.

• The goal is to identify standout talents among participants and select a team of 11 members who will have the unique opportunity to travel to Munich in March 2024 to train with the youth team of FC Bayern Munich.

• The collaboration between Global66 and Bayern Munich aims to impact Latin American youth by combining sports and technology.

• To participate, aspirants must create a TikTok video of up to one minute, showcasing their football skills and using the hashtags #global66 and #YourTalentIsGlobal while tagging the TikTok account @Global_66. After posting the video, they must register on tutalentoesglobal.com, complete the registration form, and include the link to their video. (Contxto)

Fintech Education

1. Máster en Big Data y Business Intelligence. Through the complete syllabus designed by experts, you acquire all the knowledge and skills to know in-depth the methods, techniques, and data analysis tools. As an advanced user, you also learn to use business intelligence and big data technologies. At the end of it, you can carry out an efficient exploitation of data in a professional manner.

2. Fintech in Mexico and Latin America. This course will teach you the necessary concepts to understand Fintech, leading companies, trends, and business models in Mexico and Latin America. You will also learn about the Fintech regulation in Mexico ("Fintech Law") and how the sector is being regulated in Latin America. Topics such as the Financial Industry, Fintech Ecosystem, Digital Wallets, Crowdfunding, and Sandbox, among others, will be discussed.

3. Master's Degree in Fintech and Digital Financial Services. Learn with this Master in Fintech and Digital Financial Services through a 100% online methodology, the basics of these new methods of payment and financing, digital asset management -Defi, Insurtech, Proptech, Legaltech, NFTs, Cryptos- or new business financing solutions for any industry sector.

Food for Thought

1. Fintech vs. Banks in Mexico: Who Wins in 2024? Predictions from an Investor, Adriana Saman

   In this interview Adriana Saman, investment director at Clocktower Technology Ventures, explains how to start a fintech in 2024, how to start a fintech in Mexico and what is the ideal business model in the sector.

Jobs

Head de Crédito - Fintech @Mottu (Location)

Chief of Staff @Clara (Remote)

Sr. Director - Customer Experience, Banking & Fintech @Sutherland (Remote)

WiPay Group expands to Colombia launching inclusive financial solutions

WiPay Group, a leading Caribbean payment fintech, has recently announced its expansion into the Colombian market, marking its strategic entry into South America. This new phase for the company promises to revolutionize the financial services sector in Colombia, with a particular focus on underserved communities, especially the Afro-Colombian community. With this move, WiPay Group aims to change the economic landscape for millions of Afro-Colombians, often excluded from the traditional banking system.

In Colombia, the Afro-Colombian community, which numbers more than 4.5 million people according to the latest census, has historically faced barriers in accessing financial services due to geographical location and lack of education and development opportunities. WiPay Colombia seeks to significantly impact these communities by offering them accessible and practical financial tools.

Introducing the COLOUR mobile app by WiPay Colombia is a step forward. COLOUR, a digital wallet, and virtual Visa card, has been designed to offer secure and comfortable financial solutions. This app focuses on essential services such as digital bank accounts, Virtual Visa debit cards, bill payments, mobile top-ups, and microloans. Additionally, WiPay has integrated Visa Direct into its offering, allowing users to receive money from around the world at no cost facilitating digital remittances through the Visa network.

Vía Contxto

Quick News

Sodexo launches its fintech Pluxee to expand in Mexico

Sodexo, the multinational company in the food services sector, selected Mexico as the starting point for its foray into the fintech sector, using the country as a testing ground to assess the effectiveness of its solution: Pluxee.

• This fintech goes beyond simple payments, aiming to consolidate its model as a comprehensive provider of corporate solutions, covering financial, incentive, and administrative aspects.

• Adopting a business-to-business-to-consumer (B2B2C) strategy, the company, known for its meal vouchers, has redefined its ‘Benefits and Incentives’ business segment. (Contxto)

Beetransfer and Bitso join forces to support freelancers in LATAM

Beetransfer formalized a strategic partnership with the Bitso cryptocurrency platform to accelerate its expansion in Latin America.

• Financial technology startup achieved sales of more than $1.3 million in its first year.

• This strategic collaboration will allow Beetransfer users to access a new alternative for receiving instant payments, providing greater flexibility in managing their international income. (Contxto)

CondoConta Secures USD $14.6 Million in Series A Round

CondoConta, the Brazilian fintech specializing in banking services for condominiums, has announced the raising of approximately USD $14.6 million in its Series A funding round.

• The investment was led by new entrants SYN Proptech, Endeavor Scale-Up and Terracotta Ventures, along with existing investors Redpoint eVentures and Igah Ventures.

• This capital injection will enable CondoConta to triple the opening of new accounts, thanks to integrating native interfaces with major condominium management systems (ERPs) and administrators in Brazil.

• CondoConta stands out for its innovative business model, offering a full range of financial services, including checking accounts, credit cards, loans, financing, and delinquency management. Additionally, it provides solutions to facilitate the payment of condominium fees. (Contxto)

EBANX launches new products to protect transactions

EBANX announced new products and features on its payment platform with the goal of simplifying and enhancing the experience for the 29 countries in Latin America and the Caribbean, Africa, and Asia where it operates.

• EBANX strategically positions itself to serve its merchants and these growing regions, connecting both ends through the best payment solutions.

• The new products bring advanced technology that prioritizes security and high-performance payment transactions on the platform.

• EBANX’s fraud and risk management solution, serving merchants worldwide conducting cross-border transactions in emerging economies, now features a set of cutting-edge functions. (Contxto)

Hapi raises USD $1.6 million to democratize the stock market in LatAm

The emerging company Hapi, headquartered in San Francisco with Peruvian roots, has secured significant funding of USD $1.6 million to strengthen its presence in the Latin American stock market.

• This fundraising involved participation from various investment entities, including Utec Ventures, Unpopular Ventures, Softeq Ventures, and Mural Capital.

• The primary commitment of Hapi is to facilitate and make stock market investment more accessible for the people of Latin America.

• Hapi is an application focused on purchasing and selling stocks in the U.S. stock market, specifically designed for clients in Latin America. (Contxto)

Credix expands into Latin America

Credix, a Brazilian platform specializing in credit tokenization, has raised a significant USD $60 million.

• This funding comes from experienced investors in the United States, who manage a combined capital of more than USD $3 billion in financial assets. The names of these investors have not been publicly disclosed at this time.

• According to information provided by the fintech company, these funds will be directed primarily towards expanding Credix's operations in Brazil and Latin America. (Myconomy)

Colombia Leads the Fintech revolution in Latin America

Colombia is consolidating its position as a leader in the fintech sector in Latin America, according to a recent study by Banco de la República in collaboration with Universidad de Los Andes, Juancho Te Presta, and Colombia Fintech.

• This milestone marks a significant advance in the economic and credit evolution of the Colombian population. This is thanks to the constant growth of financial technologies that are revolutionizing access to credit.

• The 63.9% increase in loans up to $500,000 last year, where almost 70% were granted by fintechs, reflects the catalytic role of these entities in building a more inclusive financial ecosystem. (Enter.co)

Nubank reports record revenues of USD $ 2.1 billion and profit of USD $ 303 million

Nubank reported its third quarter 2023 financial results.

• Record revenues for the period were US$2.1 billion, resulting in net income of USD $303 million and an adjusted net income of USD $356 million.

• Average Monthly Revenue per Active Client (ARPAC) exceeded double digits for the first time, at USD $ 10, annualized ROE reached 21%, and annualized adjusted ROE reached 25%, demonstrating operating leverage.

• According to Nubank's founder and CEO, David Velez, they reached 90 million customers in October. (América Economía)

Fintech Education

1. BUniversity of Hong Kong: Blockchain and FinTech: Basics, Applications, and Limitations. Understand the design rationale of blockchain technology and its emerging platforms and applications and uncover the limitations and opportunities enabled by blockchain applications, particularly as they relate to finance.

2. The University of Texas at Austin: Fintech: AI & Machine Learning in the Financial Industry. This is the third in a series of courses on financial technology, also called Fintech. This course provides an overview of machine learning applications in finance.

3. FinTech for Finance and Business Leaders. The practical skills needed to understand and implement adequate cyber security, machine learning using Python and robotic processes, and intelligent automation in the finance function.

Food for Thought

1. Matías Gorosito, CMS GROUP Partner at Fin&Pay by CMS with the support of VISA and Fintech On The Rocks

   Matías Gorosito, Partner of CMS GROUP, the company founded by Pablo Salamone, which has already organized more than 800 events in America and Europe and was recognized as "Top of Mind", talked to Fintech on the Rocks about his role in CMS, what they do to bring innovation throughout Latin America and Spain, and how he experienced Fin & Pay 2023.

Jobs

Head de Producto @Atrato (Remote)

Chief of Staff @Clara (Remote)

Head of Fraude @Global66 (Location)

Mercado Pago receives USD $466 million for further expansion

Mercado Pago, the digital bank of Mercado Libre, received a significant capital injection of USD $466 million.

Through its financial entity Mercado Crédito, it managed to secure a private financing line for this amount through Citi subsidiaries.

These USD $466 million will be distributed between Brazil and Mexico, with USD$237 million coming from Banco Citibank SA and USD $229 million from Citibanamex in local currency.

The main objective is to expand credit capacity for consumers, entrepreneurs, and small businesses in Latin American countries.

Vía Contxto

Quick News

Galactic Holdings secures USD $6.25 million for expansion in LATAM

The parent company of TruBit, Galactic Holdings, successfully completed a Series A investment round, raising a total of USD$6.25 million.

• This round was led by Galaxy Interactive and DragonFly, with the participation of SHK. 

• This achievement not only strengthens the company’s position as a prominent player in the world of cryptocurrencies in Latin America but also paves the way for accelerated expansion in the Latin American market and the development of TruBit.

• Galactic Holdings operates TruBit Pro, an advanced exchange, and Moneta (MMXN), a stablecoin linked to the Mexican peso. (Contxto)

Galgo and the IFC forge alliance to expand access to automotive credit in Latin America

The International Finance Corporation (IFC), part of the World Bank Group, has formed a strategic partnership with Chilean fintech Galgo, a specialist in digital vehicle sales and financing in Latin America.

• This agreement aims to expand and strengthen credit opportunities for society’s most vulnerable sectors, including migrants and those previously without access to banking services.

• The company has since evolved to provide credit to over 45,000 individuals in four years, extending its operations to Peru, Colombia, and Mexico.

• With IFC’s support, Galgo is well-positioned to expand its impact and reach a broader segment of the population, providing access to financial solutions previously beyond its reach. (Contxto)

N26, German fintech, confirms cessation of operations in Brazil

After two years of activity in Brazil, the German fintech startup N26 has confirmed the end of its operations in the South American country.

• The announcement was made through a publication on the company’s website and official N26 LinkedIn profile.

• The fintech highlighted the work done by its team and the trust its customers place in its application services.

• According to the bank, employees who worked in Brazil can apply for vacancies at the company’s European offices. (Contxto)

Barte raised an investment round for BRL $20 million

After the first months of operation, Barte, a B2B payments fintech for small and medium-sized businesses (SMEs), reached BRL$20 million in transactions on its platform during March.

• In a recent announcement, the fintech revealed the successful fundraising of BRL$20 million through debentures.

• This event marks the third funding in the last 12 months, following capital rounds of BRL$16 million in March and BRL$6.5 million in November 2021.

• From that point, the focus shifted towards developing acquisition channels, the payment product, and the credit segment. Now, the third pillar of this strategy is taking shape. (Contxto)

iugu, Brazilian fintech, secures USD $14 million investment for its expansion

iugu, a financial services platform specializing in cash management and payment automation, has announced a significant investment of USD $14 million in a new senior quota series in its FIDC (Investment Fund in Credit Rights), with Bradesco BBI leading the transaction.

• Since its foundation in 2012, iugu has seen significant growth in its operations and projects, an 80% increase in 2023 compared to 2022, establishing itself as a cash management and payment automation solutions leader.

• Last year, the fintech raised R $1 million in the first series of the iugu FIDC with the support of Bradesco BBI, allowing it to diversify its products and services. The first series exceeded the R $1000 million mark in transaction volume.

• Additionally, iugu is exploring new investments and growth strategies. (Contxto)

Liquido is licensed to operate as a payment institution in Brazil

Liquido has just obtained a license from the Central Bank to use as a payment entity in Brazil.

• Liquido has been operating in Brazil for under two years and conducts transactions equivalent to USD $1 billion annually.

• With the new license, it can serve its customers directly, but this is a long-term plan.

• Outside the system of significant banks, the platform is already one of the leading transaction platforms for Pix. (Contxto)

Paytech GoPass has closed a USD $15M round in Colombia to digitize toll and parking lot payments further

The company has a platform from which you can also manage payments at Terpel gas stations, car wash services, payments at self-service stores, towing assistance and, among others, technical-mechanical inspections, which they call an ecosystem.

• This capital injection has been led by the largest Latin American venture capital firm, Kaszek Ventures, with the participation of angel investors who followed up on their initial investment, mainly the founders Felipe Samper, Alejandro Uribe, Felipe Ochoa and Jorge Camacho.

• GoPass plans to announce additional functionality in its ecosystem in the coming months. (LatamFintech)

Beetransfer announces partnership with Bitso

Beetransfer, the Fintech Startup with more than 1.3 Million dollars in sales in its first year, made an agreement with Bitso. This cryptocurrency platform will accelerate its growth in the region.

• This strategic partnership will allow Beetransfer users to access an additional option to receive payments immediately, providing greater flexibility in managing their international revenues.

• Beetransfer becomes the stripe of Latin American talent, helping thousands of freelancers, nomads, and businesses to receive payments from anywhere in the world in seconds. (TyN Magazine)

Fintech Education

1. Máster en Big Data y Business Intelligence. Through the complete syllabus designed by experts, you acquire all the knowledge and skills to know in-depth the methods, techniques, and data analysis tools. As an advanced user, you also learn to use business intelligence and big data technologies. At the end of it, you can carry out an efficient exploitation of data in a professional manner.

2. Fintech in Mexico and Latin America. This course will teach you the necessary concepts to understand Fintech, leading companies, trends, and business models in Mexico and Latin America. You will also learn about the Fintech regulation in Mexico ("Fintech Law") and how the sector is being regulated in Latin America. Topics such as the Financial Industry, Fintech Ecosystem, Digital Wallets, Crowdfunding, and Sandbox, among others, will be discussed.

3. Master's Degree in Fintech and Digital Financial Services. Learn with this Master in Fintech and Digital Financial Services through a 100% online methodology, the basics of these new methods of payment and financing, digital asset management -Defi, Insurtech, Proptech, Legaltech, NFTs, Cryptos- or new business financing solutions for any industry sector.

Food for Thought

1. Advances and opportunities in the Fintech sector in Mexico (SNEF 2023)

   Conference Advances and opportunities in the Fintech sector in Mexico SNEF 2023.

Jobs

Head de Producto @Atrato (Remote)

Chief of Staff @Clara (Remote)

Head of Fraude @Global66 (Location)

Krealo invests in Plurall, the innovative Colombian fintech focused on financial inclusion

Krealo, the Corporate Venture Capital arm of the financial giant Grupo Credicorp, has strengthened its investment portfolio with a new acquisition: the fintech Plurall, based in Colombia. This move marks Krealo’s ninth regional investment, underscoring its active strategy and interest in promising startups.

Plurall is not your average startup. It aims to promote financial inclusion for entrepreneurs from various sectors, providing them with essential tools for their growth. This includes access to flexible microloans for working capital, a fully digital account, and a debit card with which they can make interest-free transactions.

Krealo’s investment objective is clear: to add strategic value to Grupo Credicorp. They seek to strengthen their current operations, expand into new areas and markets, and simultaneously explore cutting-edge technologies that can lead to future business models.

Vía Contxto

Quick News

Vaas raises USD $2 million to fight financial frauds

The Brazilian startup Vaas, dedicated to developing technologies against financial fraud, raised BRL $10 million (USD $2 million) in a pre-seed round led by ABSeed.

• The startup, still in a proof of concept phase with significant companies, plans to launch its blockchain transaction tracking platform next month. 

• The solution will already track transactions through Pix, but the plan is to develop anti-fraud tools for this type of payment, which has been a primary target of scammers.

• For the first time, the startup has attracted institutional investors. In addition to ABSeed, Fuse Capital and Honey Island by 4UM have joined. With the funds, Vaas will implement its market launch strategy and develop new products. (Contxto)

Leroy Merlin and Pefisa launch ‘Leroy Merlin Pay,’ a revolutionary financial platform

Leroy Merlin has allied with Pefisa, the fintech of Pernambucanas, to launch Leroy Merlin Pay, a financial platform designed to assist consumers throughout their purchasing process.

• This tool consolidates information, allowing users to view their invoices and limits, make advance payments, carry out transfers like Pix, and more.

• Additionally, loans, insurance, and investments can be requested, and access to a loyalty program is granted.

• Similarly, the Celebre card has been introduced, tailored to various buyer profiles. Depending on the shape, there are different cards with specialized packages and payment options in up to 10 interest-free installments. (Contxto)

The Mexican fintech Axify secures a USD $1.3 million investment for its expansion

The fintech industry in Mexico continues to evolve and adapt to the changing needs of consumers. One of the most recent innovations comes from Axify, a startup introducing a “buy now, pay later” model, a formula revolutionizing the world of digital payments.

• Axify has successfully raised an investment of USD $1.3 million from Alpha Impact 8 and Avalancha Ventures.

• Axify platform has integrated with an impressive network of 44,000 convenience stores in Mexico.

• The team behind Axify remains proactive. They currently have a particular interest in delving deeper into the retail industry. (Contxto)

Verqor raises USD$7.5 million to digitize the agricultural sector

Verqor, a Mexican fintech startup that digitizes the agricultural sector in Mexico, managed to raise USD$7.5 million, of which USD$4 million is part of a pre-Series A round led by Yara Growth Ventures.

• Accion Venture Lab, SP Ventures, Glocal, and Amplifica Capital also participated in this round. The startup also secured an additional USD $3.5 million in debt financing from Co_Capital and Addem Capital.

• Verqor provides cashless loans to farmers to purchase the supplies they need for cultivation, such as fertilizers, agrochemicals, and organics; 55% of users access credit for the first time.

• Verqor’s financing allows farmers to cover up to 90% of their costs, improving the quality of products and increasing their income in each cycle. (Contxto)

Paradox Ventures: first private equity fund for fintech

In Mexico, the launch of Paradox Ventures, the first private investment fund dedicated to fintech companies with a conscious focus, was announced and promoted.

• These startups are dedicated to eliminating the barriers that affect social and economic growth in Latin America

• This initiative by Valderrama arises in the midst of a significant decrease in investments.

• Armando Betancourt, Strategic Venture Partner at Paradox Ventures, emphasized that this fund represents a new model characterized by its social, sustainable focus and support from advanced technologies like blockchain and artificial intelligence. (Contxto)

Venture capital funds invest USD $308 million in the cryptocurrency sector

During October, venture capital funds invested USD $307.68 million in cryptocurrency startups.

• This amount is 12.8% lower than the total invested in September and just above the three-year minimum recorded in August. The data is according to information from DefiLlama.

• Most investments were directed towards projects creating infrastructure solutions in the blockchain industry, receiving USD $153.8 million.

• Blockaid, a startup specialized in Web3 protocol security, had two rounds in October and raised USD $33 million from venture capital firms, making it the infrastructure-focused project that received the most investments in that month. (Contxto)

Finnovista Fintech Radar 2023 reveals growth driven by wealth management and cryptocurrencies in Argentina

The recent report from Finnovista, an innovation and venture capital firm specializing in the Fintech field of Latin America, in collaboration with Visa, has shed new light on the Fintech landscape in Argentina.

• According to the Finnovista Fintech Radar 2023, the sector has seen a significant increase in new projects, especially those offering tools for effective wealth management and investment.

• From the data collected, the emergence of 154 additional initiatives this year stands out, reflecting that nearly half of the country’s startups are in a growth and expansion phase, with a notable rise in cryptocurrency-related platforms.

• The report also highlights that the Wealth Management segment has consolidated as the leader within the Argentine Fintech ecosystem, with growth exceeding 80%. (Contxto)

QI Tech achieves historic USD $200 million investment round

The Brazilian startup QI Tech has completed a historic and valuable Series B funding round, making waves worldwide.

• QI Tech, a company that provides technological infrastructure for B2B financial solutions, secured a USD $200 million investment led by General Atlantic.

• Although the new valuation has not been disclosed, it is estimated that QI Tech has likely become a ‘unicorn,’ which means it has surpassed the $1 billion mark or more.

• QI Tech has developed its own technology in various solutions for corporate clients, such as credit issuance, banking services, and fraud prevention. (Contxto)

Fintech Finkargo raised USD $20 million to strengthen its platform for financing imports in Colombia

Finkargo, a fintech founded by Colombians Tomás Shuk, Santiago Molina, and Andrés Ferrer, which through its platform, finances merchandise purchases of importing companies in Colombia and Mexico, has just raised USD $20 million in a Series A investment round.

• This capital injection was led by QED Investors, with the participation of Nazca and previous investors such as Quona, Flybridge, Maya, and ONEVC.

• Since its inception in 2021, the company has accessed more than USD $27 million from investors, but also USD $75 million in debt.

• Finkargo says these resources will strengthen the company's growth in Mexico by expanding its offering beyond international financing to an integrated suite of trade services for importers: supplier and product sourcing and verification, cargo insurance, foreign exchange management, and trade intelligence data analysis. (Latam Fintech)

Mexican fintech Creze obtains credit line of up to USD $5.7 million from BBVA

Creze, the SME lending platform, announced that it obtained a credit line for up to USD $5.7 million from BBVA Spark, BBVA's financial arm that drives the growth of high-impact companies.

• Creze provides credit to SMEs. Ninety percent of these companies do not have access to formal credit in Mexico, drastically inhibiting the country's growth and employment.

• The fintech, led by Juan Ahedo and Bernardo Prum, has already granted more than USD $114 million in more than 5 thousand loans to Mexican SMEs.

• It has achieved this "thanks to its 100% digital platform that uses artificial intelligence and its innovative risk model that allows it to provide tailored credit for the millions of underserved SMEs. (Tekiosmag)

Fintech Education

1. Fintech Revolution: Transformative Financial Services and Strategies. This program will help you understand disruptions in the fintech industry across a broad cross-section of products and services, from traditional banking to blockchain.

2. Innovation in Finance: Fintech and Blockchain. It encompasses concepts such as artificial intelligence, open banking, APIs, and neobanks, shaping new ecosystems. The online content allows you to adapt your training process to your work and personal life.

3. Master's Degree in Fintech and Digital Financial Services. Learn with this Master in Fintech and Digital Financial Services through a 100% online methodology, the basics of these new methods of payment and financing, digital asset management -Defi, Insurtech, Proptech, Legaltech, NFTs, Cryptos- or new business financing solutions for any industry sector.

Food for Thought

1. Open Finance interoperability standards for fintech

   One of the panels at Fintech Summit Latam 2023 focused on Open Finance and the interoperability challenges. The "best practices" of countries such as the UK and Brazil, which are leading the way in this area, serve as a basis to encourage and support the search for a common standard that allows interoperability between countries in the region.

Jobs

Head de Producto @Atrato (Remote)

Chief of Staff @Clara (Remote)

Head of Fraude @Global66 (Location)

Finerio obtains USD $6.5 million to boost its platform

The startup Finerio Connect, based in Mexico City, has secured an investment round of USD $6.5 million. 

This capital injection will support the development of their open finance platform, which facilitates access to personalized financial services.

This funding was led by Third Prime and involved strategic investors such as Visa, Bancolombia Ventures, and Krealo, the venture capital arm of Credicorp. 

In addition to Alaya Capital, Gaingels, Plug and Play, and Winklevoss Capital, there was participation from a group of angel investors associated with Guiabolso, Dock, and ClassPass. 

Previously, the company had raised around USD $3.2 million in SAFE notes.

Vía Contxto

Quick News

Argentina accelerates legislation to implement digital currency

After discussing the possible benefits of a central bank digital currency (CBDC) for the national economy, the Central Bank of the Argentina Republic announced that it has expedited its work on legislation to implement this in the country.

• Director of the Central Bank, Juan Agustín D’Attellis Noguera, stated they are working on the legal framework for the CBDC project in pesos proposed by the Minister of Economy and presidential candidate Sergio Massa.

• Furthermore, he praised Massa’s proposal for the CBDC. He indirectly criticized the position of the other presidential candidate, Javier Milei, who has publicly advocated for the ‘dollarization‘ of the Argentine economy.

• This is not the first time Noguera has advocated for a CBDC. (Contxto)

BRLA Digital raises BRL $3 million in first investment round

The fintech BRLA Digital, which specializes in cross-border payments and cryptocurrency infrastructures, has just raised BRL $3 million in its first round of funding.

• Participating in the pre-seed round is Coins, a Filipino exchange led by Wei Zhou (former CFO of Binance); and Rodrigo Benez, a digital asset investor who founded the first stablecoin in Brazil with SimpliPay, among other investors.

• According to the fintech company, the funds come when their operations in Brazil need a boost.

• With the boost the investment will provide the business, BRLA Digital plans to reach at least 30 clients by 2024 (currently serving five) and process over BRL$100 million monthly. (Contxto)

Nexu achieves USD $20 million Series B investment round

Nexu, the Mexican fintech that offers a financing platform for people looking to buy a car, has secured a Series B investment round of USD $20 million. This capital injection will be used to empower the startup.

• Valor Capital led the investment round, with participation from FinTech Collective, Endeavor Catalyst, Altos Ventures, Wollef, Squareone, Clocktower Ventures, Gilgamesh Ventures, FJ Labs, Ivernet, and Capem.

• Nexu also secured a line of credit from HSBC, although the amount was not disclosed. The fintech has raised USD $53 million in previous financings.

• This newly acquired capital will be used to expand its presence in the Mexican market and to enhance and diversify its financing services. (Contxto)

Chilean Fintech Cumplo will arrive in Colombia

12 years ago, Cumplo entered the market and became one of the pioneers in fintech in Chile. Recently, they surpassed the milestone of USD $2 billion in financing for small and medium-sized enterprises.

• This achievement has been highlighted by its founder and president, Nicolás Shea, who also emphasizes that they have surpassed 100,000 transactions in the three markets where they currently operate: Chile, Mexico, and Peru.

• These positive results support the startup’s vision, which is to continue expanding internationally.

• Shea revealed they are already working on their next international expansion, choosing Colombia as their fourth market, with which they have had some discussions. (Contxto)

FinMaq secures a USD $500,000 investment and gears up for its LatAm expansion

FinMaq, an emerging Colombian fintech, has successfully marked its presence internationally by being named the winner of the ‘International Soft Landing’ program.

• The ‘International Soft Landing’ was conceived to boost tech startups. Through it, FinMaq secured a financial injection of USD $500,000

• FinMaq’s unique approach focuses on providing funding for productive assets to individuals and SMEs in Colombia.

• Their primary mission is to promote financial inclusion and create a substantial social impact. (Contxto)

Chile reached 300 financial technology companies according to the Finnovista Fintech Radar 2023

Santiago de Chile positioned itself as the mecca of financial innovation in Latin America thanks to the unveiling of the Finnovista Fintech Radar Chile 2023, an event co-hosted with Visa.

• The report presented shed revealing data, highlighting that fintechs in Chile have experienced exponential growth, with an annual rise of 29.5% since 2021, reaching 300 companies.

• Over half of these startups focus on payments, remittances, financial management, and lending.

• This recent collaboration between corporations, startups, and critical players showcases the transformative potential when forces unite to reshape the financial landscape. (Contxto)

Colombian fintech R5 reaches investment agreement with Lendable

R5, a startup from Colombia, secured an investment agreement led by the British fund Lendable, which focuses on promoting inclusion and sustainability through proven fintech in both areas.

• The funds obtained will be used to expand the loan offerings for acquiring used vehicles, enabling people to get a car through a loan.

• Lendable is a financing provider for various fintech companies in emerging and frontier markets.

• Based in the United Kingdom, Lendable has provided more than USD $350 million in credits to fintech companies in over 14 countries. (Contxto)

Worldline and Yuno join forces to simplify online payments in Latin America

Worldline, a global leader in payment services, has chosen to collaborate with Yuno, a prominent Colombian startup specializing in online payments in Latin America and the United States.

• This collaboration aims to optimize the management of various payment methods for businesses and digital retailers in the Latin American region.

• Yuno has developed a cutting-edge platform called Ultimate Checkout. This innovative tool allows digital businesses to manage multiple payment methods under a single interface.

• the platform will enable merchants to customize their payment process, monitor acceptance rates, produce detailed reports, and utilize advanced tools for fraud detection and intelligent transaction routing. (Contxto)

Fintech Tenpo launches credit card to compete with banks

The credit card recently launched by Tenpo, the digital account from Chile, has had a successful first month with over 15,000 issuances.

• This achievement was gradually reached by inviting customers, a common strategy in launching financial innovations to the market.

• This credit card offers complete control over credit limits, expenses, and budgets and is available in virtual and physical forms.

• It can be acquired online without maintenance or administration costs. Despite the positive response, the fintech company aims to have more than 40,000 cards in operation by the end of the year. (Contxto)

The fintech Tuily launches business credit card in Colombia

The Colombian fintech startup Tuily has recently unveiled its business credit card and expense management platform, designed to support entrepreneurs and small businesses in the country.

• This initiative is backed by Mastercard and is issued by Paymentology.

• The fintech’s funding has come from its resources, but there are plans to initiate investment and debt rounds.

• With a team of 22 talented individuals, Tuily aims to reach 350 businesses as clients by the end of 2023 and projects an 80% month-to-month transactional growth. (Contxto)

Yuno partners with Bamboo Payment for cross-border payments in LatAm

The Colombian startup Yuno, an expert in digital payments, has partnered with Bamboo Payment, a leading transaction manager from Uruguay.

• These companies aim to optimize and streamline international transactions for Latin American organizations.

• Yuno and Bamboo Payment have combined their expertise to offer a comprehensive and effective solution.

• This partnership strives to overcome the usual challenges of global trade and provide a more straightforward and cost-effective way to handle transactions. (Contxto)

Spin, Oxxo’s fintech, records a 105.8% user growth in just one year

Oxxo, the Mexican convenience store chain, has experienced unprecedented growth in its fintech named Spin.

• Over the past year, the user base of this financial platform doubled, reaching an impressive figure of 8.8 million customers by the end of September.

• This number is a remarkable increase of 105.8% compared to the 4.3 million users it had in 2022.

• Between July and September of this year, Spin attracted 1.2 million new users. The fintech increased its user base by 4.5 million, demonstrating a steady monthly growth rate of 6.2%. (Contxto)

Fintech Education

1. BUniversity of Hong Kong: Blockchain and FinTech: Basics, Applications, and Limitations. Understand the design rationale of blockchain technology and its emerging platforms and applications and uncover the limitations and opportunities enabled by blockchain applications, particularly as they relate to finance.

2. The University of Texas at Austin: Fintech: AI & Machine Learning in the Financial Industry. This is the third in a series of courses on financial technology, also called Fintech. This course provides an overview of machine learning applications in finance.

3. FinTech for Finance and Business Leaders. The practical skills needed to understand and implement adequate cyber security, machine learning using Python and robotic processes, and intelligent automation in the finance function.

Food for Thought

1. Trends and challenges in combating identity fraud in fintech

   Today there is a battle to mitigate risks and use advanced technology to provide security to users and the Fintech system. Guilherme Terrengui, Director of Business Development, LATAM & Iberia at Sumsub, talks about this.

Jobs

Head de Producto @Atrato (Remote)

Chief of Staff @Clara (Remote)

Head of Fraude @Global66 (Location)

Albo raises USD$40 million in Series C investment round

The neobank Albo secured USD$40 million in a series C funding round, marking one of the latest investment rounds for startups in the Latin American region.

In a time of capital scarcity, financial technology companies in Latin America and Mexico continue gaining investors' recognition.

California-based venture capital firm Morpheus Ventures led the funding round. Also participating were Valar Ventures and Nazca Ventures, based in Mexico.

Their CEO and founder, Ángel Sahagún Fernández, stated that the goal was to reach a break-even point starting from next year.

Risk aversion in the investment markets has prompted fintech companies to swiftly steer towards profitability.

Vía Contxto

Quick News

The Superintendency of Industry and Commerce sets new rules for Colombian fintech

Colombia’s Superintendency of Industry and Commerce (SIC) has begun regulatory actions towards fintech in response to consumer complaints.

• This decision comes after a series of complaints highlighting potentially harmful practices.

• the SIC has set guidelines for those fintech companies that still need to be under the specific supervision of an administrative authority.

• The complaints highlighted various issues: charging excessive interest, undisclosed fees, unauthorized disclosure of clients’ credit information, disbursing amounts less than approved, and including terms deemed abusive in contracts. (Contxto)

The Mexican fintech Baubap plans to reach 6 million users and launch savings products in 2025

Baubap, the renowned Multiple Purpose Financial Company (Sofom) from Mexico, has recently unveiled its short and medium-term growth vision in the financial sector.

• Since November 2022, Baubap has been working with a substantial financing line amounting to USD $30 million.

• The goal set for the following year is centered on expanding their services to a staggering 6 million users.

• This translates to granting loans amounting to a total of MXN $12,000 million. (Contxto)

Investments in Fintech companies grow 183% in Argentina

According to the Report on Retail Payments by the Central Bank of the Argentine Republic (BCRA), between January and July 2023, balances invested through these platforms increased by 183%.

• These virtual wallets offer investment accounts, allowing users to access their money at all times for payments or transfers while earning interest on the invested amount.

• Various Fintech companies provide this service, ensuring their users an annual return of over 90% on the balances invested in Common Investment Funds (FCI), through the so-called investment or remunerated accounts.

• Deposits from the private sector in traditional fixed-term deposits increased by 48%, from an average of ARS $8.03 trillion in January 2023 to ARS $11.93 trillion in July of this year. (Contxto)

Brazil dominates the cryptocurrency market in Latin America

The Brazilian market is one of the largest in Latin America for investing or buying cryptocurrencies.

• According to a report from blockchain platform Chainalysis, Brazil currently ranks ninth worldwide in adopting digital assets.

• Argentina ranks 15th in this ranking, followed by Mexico, according to the Geography of Cryptocurrency survey.

• Brazilians have been using cryptocurrencies as a form of investment, making that market more sophisticated than neighboring countries, according to Chainalysis.(Contxto)

Payface buys SmileGo to boost biometric payments

Payface, the Santa Catarina-based startup leader in payments with facial biometrics in Brazil, has closed the acquisition of its competitor, SmileGo.

• Payment through facial recognition is a reality and a success in countries like China, where up to a third of purchases are made using this technology.

• SmileGo specializes in biometric payments with white-label cards marketed by retail chains.

• In the last three years, Payface has created a network of 1,500 point-of-sale locations to enable facial biometric payments in physical retail (serving, for example, the São Paulo-based chain St. Marche, in partnership with Mastercard. (Contxto)

Chile reached 300 financial technology companies according to the Finnovista Fintech Radar 2023

Santiago de Chile positioned itself as the mecca of financial innovation in Latin America, thanks to the unveiling of the Finnovista Fintech Radar Chile 2023, an event co-hosted with Visa.

• The report presented shed revealing data, highlighting that fintechs in Chile have experienced exponential growth, with an annual rise of 29.5% since 2021, reaching 300 companies.

• Over half of these startups focus on payments, remittances, financial management, and lending.

• This recent collaboration between corporations, startups, and critical players showcases the transformative potential when forces unite to reshape the financial landscape. (Contxto)

Nu México requests a license from the CNBV to operate as a bank

Nu México has emerged as one of the most prominent financial institutions in the country, experiencing consistent growth over the past four years since its arrival.

• Nu México it has taken the initiative to officially request authorization from the National Banking and Securities Commission (CNBV) to become a bank.

• Nu México’s strategy aims to expand its offering of products and benefits, both for its customers and investments.

• This includes the possibility of offering payroll portability and higher deposit limits. (Contxto)

Airwallex strengthens its presence in Latin America with the acquisition of MexPago

Airwallex, a leading global financial company, has agreed to acquire MexPago, a firm based in Mexico.

• This move is a clear intention of Airwallex to establish a strong presence in the burgeoning Latin American market.

• The fintech industry has shown a growing interest in Latin America, driven by its predominantly young population and increased online transactions with rivals like PayPal, Stripe, and Block. Airwallex benefits by charging fees for each transaction made.

• Airwallex’s CEO, Jack Zhang, mentioned that Mexico is a strategic point, especially given the current geopolitical and economic uncertainty between the United States and China. (Contxto)

Banking transformation in Latin America: the convergence of technology and customer experience

The financial landscape is profoundly transforming, driven by a technological revolution that has redesigned the relationship between this sector and other areas.

• Frog, a leading design and strategy consultancy, has studied how these transformations redefine the client experience in bank branches.

• The emergence and consolidation of fintechs and other tech companies have established a distinct paradigm regarding client experience. A prime example is Nubank, whose Net Promoter Score in 2019 was +90, overshadowing the Mexican financial sector average of 32.

• Regarding Latin America, according to a study by the Inter-American Development Bank (IDB) and Finnovista, the region has seen exponential growth in the fintech sector, with standout countries like Brazil, Mexico, Colombia, Chile, and Argentina. (Contxto)

Fintech Education

1. Fintech Revolution: Transformative Financial Services and Strategies. This program will help you understand disruptions in the fintech industry across a broad cross-section of products and services, from traditional banking to blockchain.

2. Innovation in Finance: Fintech and Blockchain. It encompasses concepts such as artificial intelligence, open banking, APIs, and neobanks, shaping new ecosystems. The online content allows you to adapt your training process to your work and personal life.

3. Master's Degree in Fintech and Digital Financial Services. Learn with this Master in Fintech and Digital Financial Services through a 100% online methodology, the basics of these new methods of payment and financing, digital asset management -Defi, Insurtech, Proptech, Legaltech, NFTs, Cryptos- or new business financing solutions for any industry sector.

Food for Thought

1. Financial System Outlook

   Check out the intervention of Pablo Sprenger, CEO of Sura Investments, in his talk Investment Opportunities in Latin America: Innovation, Fintech and Trends.

Jobs

Head de Crédito - Fintech @Mottu (Location)

Chief of Staff @Clara (Remote)

Sr. Director - Customer Experience, Banking & Fintech @Sutherland (Remote)

Liquido: The unified solution for payments in Latin America

In 2020, Shanxiang Qi and Mengke Li, renowned figures in companies like Uber and Didi, identified and sought to address one of the most common problems that permeate financial transactions in Latin America: fragmentation in existing payment methods. Inspired by the success of Asian platforms such as WePay and WeChat, both entrepreneurs created Liquido with a clear mission: to unify and simplify payment methods, offering integrated solutions on popular platforms like WhatsApp.

This is explained by Juan Vahos, Head of LATAM at Liquido, exclusively for Contxto:

“When trying to find a single payment service provider, they realized that there were no robust solutions that offered these services in a unified way in the region. They were forced to develop multiple integrations, negotiate with various providers, and reach local agreements that hindered the scalability of their solution.”

“Liquido is not a common payment platform,” emphasizes Vahos. “It is designed with the highest technology to serve digitally operating businesses of all scales.” Whether it’s a small tech startup or a large corporation, if they operate on a digital platform and require electronic payment management, Liquido offers a solution. It has a robust integration with leading e-commerce platforms like Shopify, VTEX, and Magento and offers highly competitive payment proposals.

Vía Contxto

Quick News

CondoConta achieves USD$5.8 million investment round

The Brazilian fintech company CondoConta, which specializes in providing exclusive financial services to condominium communities, has secured an additional injection of funds totaling approximately USD 5.8 million from EXT Capital.

• This new capital will strengthen the company’s loan division, enabling more significant financial support to condominiums in various locations across Brazil.

• CondoConta has handled around USD $ 96 million in transactions and serves approximately 3,000 condominium communities as clients nationwide.

• The company offers these condominiums a diversified range of financial services, including bank accounts, financing, and expense management. (Contxto)

Unergy announces the opening of its first office in Europe

The Latin American-origin cleantech and fintech Unergy, which specializes in financing high-performance renewable energy asset generation, announced that it would open its first branch in Europe to strengthen its presence in the markets of Spain, France, Great Britain, the Netherlands, and Switzerland.

• The startup aims to approach private and individual investors, offering a low-risk investment with a guaranteed 7% annual Internal Rate of Return (IRR).

• Through a platform combining Blockchain and artificial intelligence, Unergy fragments the assets to allow anyone to become an investor with a minimum of USD$500 and access to transparent and real-time performance monitoring.

• The startup has a current portfolio to finance more than 50 mini-farm projects, mainly in Colombia and Brazil, and it is expected to be 300 by 2024. (Contxto)

The Mexican startup Bravo expands to Colombia

The emerging Mexican fintech Bravo, recognized for its innovative solution in debt settlement, arrives in Colombia, promising its users a new financial opportunity and access to credit.

• Bravo introduced itself in Colombian territory to advise more than 600,000 individuals, aiming to reincorporate at least COP $193 billion of overdue debts into the financial system before the end of 2024.

• The plan includes an investment exceeding COP $179 billion.

• Bravo offers financial solutions and a second chance to those who have faced adverse economic circumstances. Despite their challenges, these individuals remain committed to settling their debts and achieving financial stability. (Contxto)

Galgo raises USD$40 million investment round

The Chilean fintech company Galgo, led by Benjamín Izikson, Diego Fleischmann, and Salvador Porta, secured an investment round of USD $ 40 million.

• This round was led by the Mexican Nazca fund, with the participation of Grupo Auteco, WIND Ventures, Güil Mobility Ventures, Dalus Capital, Kayyak Ventures, Fynsa, Buena Vista Capital, and Amarena VC.

• With this investment, Galgo plans to expand in Chile, Peru, Colombia, and Mexico, replicating its successful business model. (Contxto)

What are the benefits of DidiCard, Didi’s new card?

Didi has proven to be a formidable player in this race by venturing beyond ride-sharing and food delivery. To further bolster its presence in the Mexican market, Didi has unveiled its maiden financial product: the DidiCard.

• With the introduction of the DidiCard, It expands its service portfolio and reinforces its vision of a more inclusive and accessible future.

• Didi promises that potential cardholders can secure their card within 5 minutes via the Didi Passenger and Didi Food apps.

• The card sets out with a credit line of MX $3,000 (Contxto)

Chile reached 300 financial technology companies according to the Finnovista Fintech Radar 2023

Santiago de Chile positioned itself as the mecca of financial innovation in Latin America, thanks to the unveiling of the Finnovista Fintech Radar Chile 2023, an event co-hosted with Visa.

• The report presented shed revealing data, highlighting that fintechs in Chile have experienced exponential growth, with an annual rise of 29.5% since 2021, reaching 300 companies.

• Over half of these startups focus on payments, remittances, financial management, and lending.

• This recent collaboration between corporations, startups, and critical players showcases the transformative potential when forces unite to reshape the financial landscape. (Contxto)

Nu makes transaction under the sea and imposes Guinness Record

The Brazilian bank Nu Bank achieved an unprecedented feat in Mexico by conducting the first submarine transaction at a depth of 20 meters.

• This event earned them a validated record by Guinness World Records, as announced by their executives in a press conference.

• A diver descended 20 meters underwater carrying a cell phone connected via an ethernet cable to ensure internet connectivity.

• This submarine transaction occurred near the Chicxulub crater, where a meteorite struck more than 66 million years ago, marking the end of the prehistoric era. (Contxto)

SIC set rules for fintech to deliver loans in Colombia

The Superintendence of Industry and Commerce issued measures to instruct natural or legal persons that carry out operations through financing systems through fintech technological means and whose control and surveillance have not been assigned to any particular administrative authority.

• The measure by the department was taken as consumer protection authority after hearing multiple complaints filed by fintech consumers.

• After verifying the alleged charging of interest above the legal limit allowed, collection of values not owed and concepts not previously informed, dissemination of consumer credit information with their acquaintances, disbursement of an amount lower than the value of the approved credit, as well as the inclusion of abusive clauses in accordance with the provisions of Articles 42 and 43 of Law 1480 of 2011, among other behaviors, this entity, through External Circular no. 002 of October 10, 2023 and to reestablish the rights of consumers, required all natural or legal persons that grant credit operations through technological means. (Bloomberg Línea)

Regional development of the fintech industry is tangible in Dominican Republic

The regional development of the fintech industry and its verticals is tangible both in impacted users and in figures, said Samuel Ramírez Garip, president of the Dominican Association of Fintech Companies.

• The fintech sector registered significant year-on-year growth between 2017 and 2021, reaching 129% in the Dominican Republic, 79% in Guatemala, and 72% in Costa Rica.

• Ramírez Garip assured that Fintech platforms represent a potential solution to the financial inclusion gaps suffered by companies and individuals in Latin America and the Caribbean. (El Dinero)

Fintech Education

1. Blockchain: Fundamentals and applications for business optimization. You will understand the general functioning of blockchain technology and its differences: private, public, and hybrid.

2. Blockchain: Commercial Applications. Explore blockchain technology's fundamental rules and features and its potential commercial applications for your business.

3. Investment Management: Investing With Data and Technology. Gain the knowledge and skills to make smarter, safer, and more effective investment decisions.

Food for Thought

1. Regulatory changes in the fintech world in Latin America and Europe

   This interview with Fernanda Juppet where she talks about regulations in the fintech world and their consequences is essential to think about the future of the sector.

Jobs

Business Development - Senior Vice President @Infomineo (Location)

Principal Investment Officer @International Financial Corporation (Location)

Fintech Manager @Natura (Hybrid)

Chief Compliance Officer, Payments @Larson Maddox (Hybrid)

Director, Business Development Fintech @Mastercard (Hybrid)

BlackRock and BCP Global bring investments closer to LATAM

The BlackRock and BCP Global alliance aims to provide investment solutions to financial advisors or wealth managers in Latin America, including banks and other intermediary institutions.

BlackRock, one of the leading investment management firms globally, announced a new collaboration with BCP Global, a company providing digital solutions for Latin American financial institutions operating in the United States.

This partnership will enable banks and financial advisors to offer model portfolios designed by BlackRock to a broader audience of investors, thanks to the new digital tools provided by the fintech.

Vía Contxto

Quick News

Divilo closed a EUR €6 million funding round

Divilo, a pioneering fintech in payment solutions, has closed a Series A funding round of EUR €6 million, propelling the company’s total funding to EUR €12 million and valuing it at over EUR €50 million.

• The funding round is evenly split: EUR €3 million are convertible, and the remaining comes from angel investors.

• The firm is centered on sustainable growth and customer retention through the continual enhancement and evolution of its flagship product, Tap to Phone, and the technological infrastructure supporting it.

• Divilo has processed a staggering transaction value of over EUR €50,000 million in just three years, with over 500,000 individual operations. (Contxto)

Gringo startup raises USD$29 million in investment round

Gringo, the Brazilian startup for drivers, received an investment of over USD$29 million. The round was led by Valor Capital, with participation from Kaszek, VEF, Piton, ONE VC, ICU Ventures, and Actyus.

• With this investment round, Gringo will strengthen its credit and insurance products. It will also add new features and plans to increase its user base to over 20 million in the coming years.

• Gringo’s mission is to centralize all essential services and documentation drivers require, providing a one-stop solution.

• This includes payment of fines, vehicle tax (IPVA), licenses, checking driving permits or purchasing insurance and loans using the vehicle as collateral, and the business establishment. (Contxto)

PicPay integrates Apple, Samsung, and Google wallets in Brazil

PicPay, a digital payments platform, announced the integration of Apple Pay, Google Pay, and Samsung Wallet digital wallets.

• This integration allows users to make purchases using their mobile devices or smartwatches through PicPay Card, without needing a physical card.

• Implementing this tool is part of PicPay’s strategy to expand its service portfolio and will be rolled out gradually, being available to all users until the end of October.

• This expansion to digital wallets comes two months after PicPay’s acquisition of the retail area of Banco Original, a move that has accelerated various projects, including this one. (Contxto)

BID and Finnovista invite startups to contribute to a study on the fintech ecosystem in LatAm

BID and Finnovista have called on fintech startups to contribute to a survey outlining the industry’s current state, with findings to be incorporated into the fourth edition of the main report on the sector, scheduled to launch in the second quarter of 2024.

• These collaborative efforts between the IDB and Finnovista will allow for a more transparent and detailed view of the fintech ecosystem’s trends, challenges, and evolutions.

• Participation in the report also offers invaluable opportunities for the region’s startups, such as access to essential resources, the chance to forge meaningful relationships, and the opportunity to expand their influence in financial development and innovation. (Contxto)

Lulo launches app to simplify digital currency investments in Colombia

During the 5th edition of the Latam Fintech Market 2023, Colombia’s fintech scene witnessed a groundbreaking announcement: the introduction of Lulo.

• This comprehensive technological platform combines financial products and services, allowing Colombians to invest in digital currency more practically and effectively.

• This innovative application stems from a collaboration between two distinct entities, Lulo Bank and Lulo X, further expanding and diversifying the country’s digital financial landscape. (Contxto)

ApproPay started operations in Colombia with Google

ApproPay has arrived in Colombia in collaboration with Google to change how Colombians handle their finances, providing a simpler digital experience.

• ApproPay introduces a digital payment solution that operates independently of traditional banking institutions and includes the “Buy now, pay later” option.

• This promises more flexibility, greater buying power, and the absence of hidden fees. ApproPay has streamlined the credit application process, reducing it to just 37 seconds. (Contxto)

Cobre secures a USD $13 million investment round

The emerging Colombian fintech Cobre has recently announced a successful fundraising of USD $13 million.

• This move is strategically designed to expand its reach and services to small and medium-sized businesses (SMEs) in the Latin American region in a financing round led by the renowned investment fund Kaszek.

• this financial agreement was finalized in August, bringing Cobre’s total financing to an impressive total of over USD $30 million since its inception.

• With these new funds, Cobre has ambitious plans. They intend to improve and evolve their current product and adapt it to be accessible and beneficial for smaller regional businesses. (Contxto)

Bolivian Fintech rebound

According to the report "Mapping the Bolivian Digital Technology Ecosystem," an annual publication that provides information on the local IT industry, Bolivian fintech rebounded and became a critical factor in the Bolivian technology ecosystem.

• The news was announced by Allison Silva, director of Fundación Emprender Futuro, who commented on the main conclusions during the Venture Capital & Impact Investment Summit Latam (VCILAT) event.

• Silva detailed that startups in the financial sector have rebounded and have become the main pillar of the Bolivian technological ecosystem, with a 30% presence in the ecosystem. They are closely followed by educational technology (edtech) and marketplace or e-commerce startups, each with 14%. (Tekiosmag)

CondoConta achieves USD$5.8 million investment round

The Brazilian fintech company CondoConta, which specializes in providing exclusive financial services to condominium communities, has secured an additional injection of funds totaling approximately USD $5.8 million from EXT Capital.

• This new capital will strengthen the company’s loan division, enabling more significant financial support to condominiums in various locations across Brazil.

• CondoConta has handled around USD $ 96 million in transactions and serves approximately 3,000 condominium communities as clients nationwide. (Contxto)

Fintech Education

1. BUniversity of Hong Kong: Blockchain and FinTech: Basics, Applications, and Limitations. Understand the design rationale of blockchain technology and its emerging platforms and applications and uncover the limitations and opportunities enabled by blockchain applications, particularly as they relate to finance.

2. The University of Texas at Austin: Fintech: AI & Machine Learning in the Financial Industry. This is the third in a series of courses on financial technology, also called Fintech. This course provides an overview of machine learning applications in finance.

3. FinTech for Finance and Business Leaders. The practical skills needed to understand and implement adequate cyber security, machine learning using Python and robotic processes, and intelligent automation in the finance function.

Food for Thought

1. Understanding the new digital payments revolution in Latin America

   A PCMI study estimates that e-commerce sales volume in Latin America in 2023 will reach $509 billion, a 27% increase over 2022! The massive adoption of digital payments and e-commerce are becoming powerful drivers of the region's economy. This presents new opportunities for banks and fintechs, which are worth delving into to know how to make the most of them.

Jobs

Business Development - Senior Vice President @Infomineo (Location)

Principal Investment Officer @International Financial Corporation (Location)

Fintech Manager @Natura (Hybrid)

Chief Compliance Officer, Payments @Larson Maddox (Hybrid)

Director, Business Development Fintech @Mastercard (Hybrid)

Liquido seeks to implement a WhatsApp payment system in Mexico

Liquido, the fintech firm based in Mountain View, California, is determined to strengthen its presence in Mexico, a market it considers strategic and where it will seek to implement different tools that simplify user processes, such as a payment system through WhatsApp.

Liquido’s bet is clear: simplify and enhance the online payment process for regional companies and entrepreneurs. To achieve this, they have developed an application already available on major e-commerce platforms, such as Shopify, VTEX, and Magento. Additionally, they have created an API that facilitates the integration of their solution with other applications and custom developments, as well as the ability to generate payment links for entrepreneurs taking their first steps in the digital world.

Lack of knowledge and information are key factors contributing to poor economic habits and hindering the achievement of long-term goals like a dignified retirement or property acquisition. According to Mercer data, 67% of Mexican millennials have debts equivalent to 44% of their annual income.

During its beta phase, Liquido processed more than USD $350 million in payments in Aztec territory and has big plans for the near future, as the company aspires to surpass the figure of USD $5 billion in processed payments by the year 2024.

Vía Contxto

Quick News

Lemon Integrates OnRamper to Allow 5 Latam countries to Buy Crypto in their National Currencies

Lemon, the cryptocurrency platform with a user base exceeding 2 million in Latin America, has established a partnership with OnRamper, a platform acting as an aggregator of conversion services between fiat currencies and cryptocurrencies.

• This collaboration allows users from 5 Latin American countries to purchase cryptocurrencies using their local currency, specifically Mexico, Colombia, Peru, Uruguay, and Ecuador.

• The main advantage lies in the flexibility of payment options offered, as users can choose to use debit cards, credit cards, or bank deposits, depending on the conversion platform they choose.

• The latter implies users can make investments and participate in the Web3 environment using familiar payment methods, such as credit cards and bank transfers. (Contxto)

Nubank exceeds IFC’s expectations and receives USD$265 million

Nubank announced a significant increase in the A/B type loan granted by the International Finance Corporation (IFC).

• Initially committed in January 2023 for a total of USD$150 million, the total amount has recently been raised to USD$265.1 million.

• The IFC‘s operation will be carried out through an increase in the subscription of the syndicated loan B, involving commercial banks.

• The additional funds of over USD $100 million have exceeded all expectations due to the amount disbursed and constitute an unprecedented operation. (Contxto)

Fintech Mundi raises USD$15 million investment round

The Mexican fintech company Mundi announced a new Series A-2 financing round totaling USD $15 million, with Haymaker Ventures being the principal investor.

• Union Square Ventures, who led the Series A in December 2021, has also significantly contributed to this round, along with GMO Ventures, Upper90, Colibri Ventures, Base10, Asymmetric Capital Partners, Gaingels, Mana Ventures, and GSBackers.

• The purpose of this Series A-2 investment is to enhance the user experience for exporters, importers, and the associated logistics companies, who will now have the ability to provide integrated financial services. (Contxto)

CAF to allocate USD $5 million to finance innovative startups

The Development Bank of Latin America and the Caribbean (CAF) approved an investment of USD $5 million in Fund III of NXTP Ventures as part of its commitment to promote the development of innovative startups in the region.

• This investment will be channeled through the Investment and Business Development Fund (FIDE) to support Small and Medium Enterprises (SMEs).

• NXTP Ventures is a prominent private equity fund in Latin America specializing in innovative and scalable technological startups led by disruptive entrepreneurs.

• This initiative aims to support B2B segment startups in Latin America, especially in critical areas such as cloud computing, Software as a Service (SaaS), technology applied to logistics, fintech, B2B Marketplace, artificial intelligence, and information technologies. (Contxto)

Buenos Aires to use Blockchain technology for digital identification

The city of Buenos Aires is taking significant steps towards the modernization of its bureaucracy by incorporating blockchain technology.

• The first documents to be available on this blockchain platform include birth certificates, marriage certificates, as well as income statements, and academic credentials.

• It was detailed that there are plans to integrate health data and payment management in the future. Additionally, a roadmap will be established to implement this blockchain-based solution nationwide by the end of 2023. (Contxto)

Fintech Clara arrives in MTY with international payment solutions

The fintech Clara established a headquarters in Monterrey with the purpose of offering technology-based financial solutions tailored to the needs of companies that are coming to Nuevo León thanks to nearshoring.

• Clara has acquired 250 corporate clients in Nuevo León.

• Since its beginnings as a startup, Clara identified the need to simplify and streamline payments in businesses, combining financial transparency and technology. (Contxto)

More than 60 Chilean Fintech companies will make commercial tours around Latin America

With the support of FinteChile, more than 60 companies will undertake a trade mission to the main fintech markets in the region.

• Uruguay, Mexico, Colombia, Brazil, and Paraguay will be the destinations for more than 60 Chilean Fintech between September and October of this year.

• Las citas de negocios, que se realizarán con el respaldo de FinteChile, buscarán entregar a las empresas y startups todas las herramientas para que puedan expandir sus emprendimientos a nivel latinoamericano y conocer de primera mano dichos mercados. (América Economía)

Banco W and Belvo announce their new alliance for financial inclusion

This new strategic alliance, announced during the LATAM Fintech Market, seeks to offer better financial services and provide opportunities to those reported in credit bureaus.

• The work being done with Banco W opens the possibility that the information of digital wallet users can be their letter of introduction to access credit.

• Banco W hace parte de las primeras instituciones vigiladas del país, incluidas en el decreto 1297 del artículo 89 del Plan Nacional de Desarrollo, para utilizar los datos abiertos en pro del beneficio de sus usuarios. (Semana)

Prestamype closes US$ 5 million investment round

Prestamype, the leading digital financial services platform for micro and small enterprises (MSEs), has announced closing an impressive US$5 million investment round.

• This milestone marks a record in the sector, as it is the largest investment ever raised by a Peruvian fintech in a Pre-Series A round, and it is also the largest equity round of the year for this sector.

• Two prominent international Venture Capital funds led the investment round focusing on social impact: Acumen Latam Impact Ventures (ALIVE) and Oikocredit. (RPP)

Fintech Education

1. Blockchain: Fundamentals and applications for business optimization. You will understand the general functioning of blockchain technology and its differences: private, public, and hybrid.

2. Blockchain: Commercial Applications. Explore blockchain technology's fundamental rules and features and its potential commercial applications for your business.

3. Investment Management: Investing With Data and Technology. Gain the knowledge and skills to make smarter, safer, and more effective investment decisions.

Food for Thought

1. Ualá's CEO spoke about Fintech in Latin America with Bloomberg in Spanish

   Fintech Ualá is expanding further into the Latin American market, promising to expand financial inclusion in the region through access to a comprehensive financial services ecosystem. Founder and CEO Pierpaolo Barbieri discusses this topic with Caroline Hyde and Ed Ludlow on "Bloomberg Technology.”

Jobs

Business Development - Senior Vice President @Infomineo (Location)

Principal Investment Officer @International Financial Corporation (Location)

Fintech Manager @Natura (Hybrid)

Chief Compliance Officer, Payments @Larson Maddox (Hybrid)

Director, Business Development Fintech @Mastercard (Hybrid)

“Pregúntale a Fintual”: The Virtual Financial Revolution Arrives in Mexico

To democratize access to financial products and improve financial education in Mexico, Fintual—a leading company in the Latin American fintech sector—introduces “Pregúntale a Fintual,” the innovative virtual financial advisor.

This artificial intelligence tool provides immediate, 24/7 answers to questions about money, economy, investments, and financial products, including those that challenge experts.

Lack of knowledge and information are key factors contributing to poor economic habits and hindering the achievement of long-term goals like a dignified retirement or property acquisition. According to Mercer data, 67% of Mexican millennials have debts equivalent to 44% of their annual income.

To combat the lack of financial education and the resulting stress, “Pregúntale a Fintual” presents itself as a free virtual assistant available at all times, clarifying doubts about the economy, funds, and Fintual’s products, as well as other financial products in the Mexican market. Users can access this service anywhere in the country via a WhatsApp message and a local number starting with +52.

Vía Contxto

Quick News

Kapital invests USD $50 million in the purchase of Autofin bank

Kapital has completed the acquisition process to boost its operations by incorporating Banco Autofin México S.A. (BAM), a bank aimed at the retail market and small and medium-sized enterprises (SMEs).

• With this acquisition, Kapital intends to offer state-of-the-art technological experiences with tangible benefits for its users, including a wide range of products such as credit cards, automated investments, and solutions based on artificial intelligence.

• Kapital plans to strengthen its digital channels (website and mobile application) to enhance customer service quality. This includes transforming some branches into “Kapital House” concept, offering free coworking spaces with specialized executives for wealth advisory. (Contxto)

Infocheck achieves USD $350 thousand round through Broota

Infocheck has managed to simplify and expedite risk assessment for companies and SMEs (Small and Medium-sized Enterprises) through an online platform.

• The fintech provides detailed market reports automatically and in real-time to its B2C clients through its website, and for its B2B clients, it does so through wholesale plans.

• The company raised a round of USD $350,000 through the Broota crowdfunding platform.

• This capital injection adds to the funds previously obtained by Infocheck through the Start-Up Chile growth program, totaling over CLP $375 million. (Contxto)

Colektia completes purchase of non-performing loans for USD $72 million

Colektia has concluded a round of financing combining equity and debt.

• Colektia acquire a portfolio with a total balance of USD $72 million, the first of several that the company plans to acquire in the coming months.

• Investment funds from Mexico, Europe, and the United States participated in this financing stage.

• This achievement will enable Colektia to progress towards its main goal: helping individuals resolve their debts and, simultaneously, collaborating with financial entities to improve efficiency in managing their delinquent portfolios. (Contxto)

Belvo and Mibanco formed alliance to expand access to credit

Belvo has partnered with Mibanco, a leading microfinance institution in Latin America. The partnership aims to leverage open finance to assess the borrowing capacity of Mibanco customers in Colombia.

• Through the Belvo platform, Mibanco customers can securely share their daily financial data with digital wallets and other banks, in compliance with the new legislation of this South American country.

• Belvo was founded in 2019 to build the necessary technological infrastructure for financial institutions to create new user experiences. (Contxto)

Credicorp to turn fintech Tenpo into neobank

In an interview with El Mercurio, Gianfranco Ferrari, CEO of Credicorp, shared that their vision is to transform Tenpo, a Chilean fintech owned by the Peruvian financial company Credicorp, into a fully digital bank by 2025, aiming to be a 100% digital retail bank by that time.

• Credicorp operates in several countries, including Peru, Chile, Bolivia, Colombia, the United States, and Panama.

• Colombia shows significant results in multiple areas, with digital payments leading the region in 2023, with revenues exceeding USD $14.65 billion. (Contxto)

BBVA Spark boosts Payflow’s growth with EUR $20 million for expansion in LatAm

BBVA Spark is a project by Grupo BBVA to assist high-growth businesses with the agility and flexibility they need to succeed. It started in Spain and Mexico.

• BVA Spark and the Spanish startup Payflow reached a financing agreement of EUR $20 million, aiming to expand and reach more countries in Latin America.

• This platform allows employees to access their corresponding salary for the days worked in the month immediately. The financing will be carried out through the debt platform Fence. (Contxto)

Lemon incorporates fiat ramp for cryptocurrency purchases in 5 Latin American countries

Lemon announced the integration of Onramper, a fiat-crypto ramp aggregator,

• This integration will allow users in Mexico, Colombia, Peru, Uruguay, and Ecuador to purchase cryptocurrencies using their local currency.

• This step is essential to make cryptocurrency adoption more accessible for those without advanced technical knowledge. Lemon seeks to simplify cryptocurrency adoption by allowing users to acquire assets through commonly used payment methods, such as debit cards, credit cards, and bank transfers. (Cryptocity.press)

Latin American payments industry to reach US$ 179 billion in revenues by 2027

Kushki and Statista teamed up to develop a research study of the Latin American business landscape in five key industries: Fintech, Food Delivery, Tourism, Shared Mobility, and Retail.

• According to the study, the food delivery industry is accelerating, with 24% year-on-year growth by 2023.

• The study highlights that Mexico has one of the largest shared mobility industries in the region, with a growth of 16%; it is the most visited country in Latin America and has become a key market for the fintech industry. (América Economía)

InsurTech Baoba partners with Continental Assist for parametric solutions in LaTAm

Boaba and Continental Assist have announced a partnership that aims to promote and expand parametric insurance solutions in the Latin American market.

• The collaboration aims to leverage the untapped potential within certain sectors of the Latin American market, introducing state-of-the-art parametric solutions to regions eager for innovative insurance products.

• The intention is to roll out innovative and impactful parametric assistance solutions during the coming years. The focus will be on amplifying parametric solutions' reach and effortless integration into consumers’ travel experiences. (Fintech Global)

Fintech Education

1. University of Hong Kong: Blockchain and FinTech: Basics, Applications, and Limitations. Understand the design rationale of blockchain technology and its emerging platforms and applications and uncover the limitations and opportunities enabled by blockchain applications, particularly as they relate to finance.

2. The University of Texas at Austin: Fintech: AI & Machine Learning in the Financial Industry. This is the third in a series of courses on financial technology, also called Fintech. This course provides an overview of machine learning applications in finance.

3. FinTech for Finance and Business Leaders. The practical skills needed to understand and implement adequate cyber security, machine learning using Python and robotic processes, and intelligent automation in the finance function.

Food for Thought

1. Fintech, Investments and Entrepreneurship

   They say that emigrating in Latin America is like changing cabins on the Titanic. However, today, the world offers technological solutions to make the place where we were born less relevant to people's economic destiny. In this episode, Francisco Sosa Del Valle (CEO of Bunker) tells us about the revolution in finance that the world is experiencing and the advantages of living in a decentralized world.

Jobs

Capital Markets Director (Remote) @Jeeves (Remote)

Capital Collections Specialist @Stripe (Location)

Corporate and Strategy Director @Storicard (Hybrid)

Online Growth Vice President @Frubana (Remote)

Data Scientist @Clara (Remote)

Game of Coins: Who is Who in the Cryptocurrency Market in LatAm?

Since the emergence of Bitcoin in 2008, cryptocurrencies have constantly evolved. Latin America has begun to experience its own “digital gold rush,” reflected in a 40% increase in cryptocurrency investments between July 2021 and June 2022, reaching an amount of USD $562 billion, according to the Latin American and Caribbean Economic System (SELA), as stated here.

Countries like El Salvador have adopted Bitcoin as legal tender, while Mexico is exploring ways to do the same. But to better understand this phenomenon, analyzing the context in which these digital currencies emerge is essential. For example, Dogecoin, created in 2013 by Billy Markus and Jackson Palmer as a parody, has gained ground and media attention, opening a window to the universe of cryptocurrencies in the region.

Vía Contxto

Quick News

Alza raised USD $6.6 million to benefit Latinos in the U.S.

Mexican Arturo Villanueva, who worked for more than four years in the United States with the financial partnerships team at Stripe, founded the fintech company Alza, which raised USD $6.6 million in an investment round led by Thrive Capital of New York.

• In this round, angel investors Henrique Dubugras, co-founder and CEO of Brex, BoxGroup, Sebastián Mejía, co-founder and president of Rappi, Cristina Cordova, COO of Linear, and Sarah Heck, former advisor to the White House under President Obama and head of entrepreneurship at Stripe, participated.

• Alza was created to provide financial services to all Latin American migrants who came to the United States to work and who, due to their status, do not have access to such services in the country. (Contxto)

Ebanx announces seventh edition of Payments Summit in Sao Paulo

Brazilian unicorn Ebanx will hold the seventh edition of its Payments Summit, to be held in the city of Sao Paulo, Brazil, from September 18 to 20.

• This year's business event will bring together experts from around the world to discuss recent developments and forecast trends that will shape the digital economy and payments landscape of the future.

• Growth markets such as Africa and Latin America will be at the center of these discussions.

• The group of keynote speakers will bring together high-level executives from institutions and companies such as Microsoft, Uber, Sony, Canva, Ozow, Mastercard, the Central Bank of Brazil, Banorte, and Itaú Unibanco, which is also the event's partner for this year. (Tekiosmag)

Konfío Shuts Down Gestionix to Strengthen Focus on Financial Services for SMEs

Konfío, a leading player in Mexican fintech, announces the closure of Gestionix, its ERP software subsidiary. The move aims to strengthen its financial services offering to SMEs in a rapidly expanding fintech market.

• The decision aligns with the company’s goal to focus its resources on bolstering its financial services offerings for small and medium-sized enterprises (SMEs) in Mexico.

• Before Gestionix, the company acquired Astro in December 2019 and, more recently, Sr.Pago in August 2021. These acquisitions are part of a broader strategy to consolidate its presence in the Mexican fintech ecosystem.

• Founded in 2013 by David Arana and Francisco Padilla, Konfío has benefited from investments from firms such as Tarsadia Capital, QED Investors, Softbank, among others, and focuses on providing quick online loans to SMEs using advanced technology, alternative data sources, artificial intelligence, and data science. (Contxto)

Payroll Lending Fintech Konsi prepares to close its first investment round in Brazil

The payroll loans market represents around 33% of the volume of credit with free resources for individuals in Brazil. Of the total balance of R$610.2 billion in payroll loans, R$568.7 billion (or 93.2%) are for INSS beneficiaries and civil servants.

• By registering through the Konsi app, civil servants can consult all their payroll contracts, the payroll margin (the percentage of income that can be committed to paying off the loan) and the opportunities available at different financial institutions.

• In operation for around one year and eight months, the fintech founded in Salvador (BA) works as a public payroll comparator.

• The fintech currently has agreements with 16 banks, including large ones such as Bradesco, Banco do Brasil, Itaú, and Santander, and strong players in the modality such as Bmg, Daycoval, and Safra. (Latamfintech)

Food delivery and Fintech: fastest growing industries in Latin America

Kushki and Statista collaborated to develop research on the Latin American business landscape in five key industries: Fintech, Food Delivery, Tourism, Shared Mobility and Retail.

• According to the study, the food delivery industry is accelerating, with 24% year-on-year growth by 2023.

• Colombia shows significant results in multiple areas, with digital payments leading the region in 2023, with revenues exceeding USD $14.65 billion. (American Retail)

N5 raises Series A round of financing

During his career at the bank, he held leadership positions in several Latin American countries and at the bank's headquarters in Spain, and during his tenure was responsible for areas such as products and corporate customer service. All this occurred before leaving the bank with a new business in mind aimed at addressing what he identified as one of the main opportunities in the segment he knows so well: using software in financial operations.

• The amount was not disclosed.

• The round was led by Illuminate Capital, a venture capital firm whose limited partners include some of the world's largest financial institutions, such as J.P. Morgan, Citi, Barclays, BNY Mellon, S&P Global, and Jefferies. (BloombergLínea)

Paymentology and Nelo partner to facilitate in-person payments in Mexico

Paymentology, a global leader in card issuance and payment processing, announced today its strategic partnership with Nelo, an emerging consumer payment platform in Mexico.

• The collaboration will include support for Nelo’s Mastercard for in-person payments through the ‘Google Wallet’ and the launch of physical cards.

• Nelo, with more than 6 million online purchases made through its platform, aims to reinvent credit services in Mexico.

• The alliance with Paymentology gives Nelo access to a fast and scalable infrastructure solution (Contxto)

Latin American payments industry to reach US$ 179 billion in revenues by 2027

BCG's Global Payments 2023 report notes that the expansion of this sector is likely to slow globally, estimating a compound annual growth rate (CAGR) of 6.2% through 2027.

• Payments industry revenue volume grew by 8.3% between 2017 and 2022, reaching USD $ 1.6 trillion.

• In Latin America, revenues in the payments sector increased at a compound annual growth rate (CAGR) of 12% between 2017 and 2022, reaching a value of US$120 billion. (América Economía)

Cartel insurance demand rises across LATAM region

Chaucer, a global specialty insurance group, has reported a surge in demand for insurance against cartel-related violence, especially in the LATAM region.

• The outbreak of concern follows an uptick in high-profile incidents across nations such as Mexico, Guatemala, Honduras, and El Salvador.

• This ‘organized crime cover’ adds to its Strikes, Riots, and Civil Commotion (SRCC) policy, safeguarding against physical damages caused by cartels.

• In recent years, organized crime has risen significantly as a threat for businesses across the region, culminating in a cartel-led arson attack on 25 OXXO stores in Western Mexico last year. ( Fintech Global)

Fintech Education

1. University of Hong Kong: Blockchain and FinTech: Basics, Applications, and Limitations. Understand the design rationale of blockchain technology and its emerging platforms and applications and uncover the limitations and opportunities enabled by blockchain applications, particularly as they relate to finance.

2. The University of Texas at Austin: Fintech: AI & Machine Learning in the Financial Industry. This is the third in a series of courses on financial technology, also called Fintech. This course provides an overview of machine learning applications in finance.

3. FinTech for Finance and Business Leaders. The practical skills needed to understand and implement adequate cyber security, machine learning using Python and robotic processes, and intelligent automation in the finance function.

Food for Thought

1. Tax issues for Fintech and cryptocurrencies

   Explore the fundamental tax issues for fintech and cryptocurrencies at the "DIA FINTECH 2023: Digital Finance and Technology Summit". Watch this special talk on "Tax issues for Fintech and cryptocurrencies" with Erik Estrada, Tax Partner at Ja del Río.

Jobs

Capital Markets Director (Remote) @Jeeves (Remote)

Capital Collections Specialist @Stripe (Location)

Corporate and Strategy Director @Storicard (Hybrid)

Online Growth Vice President @Frubana (Remote)

Data Scientist @Clara (Remote)

Syscap Closes USD $2.3 Million Round to Transform Private Credit in Mexico

Syscap, a fintech startup, has closed an initial funding round of USD $2.3 million to expand its private credit infrastructure in Mexico.

Founded by David Noel Ramírez and Alejandro O’Farrill, Syscap was designed as a platform to enable non-bank lenders to efficiently manage and access private credit lines, offering a centralized point for communication, monitoring, and reporting.

Before joining forces to launch Syscap, Ramírez and O’Farrill met while working at FEMSA, a multinational beverage and retail company. Subsequently, Ramírez co-founded Concéntrico, while O’Farrill worked at Amazon and Nubank. Syscap CEO Ramírez told TechCrunch that traditional credit line management is done through outdated banking software or manually, using spreadsheets and emails.

Vía Contxto

Quick News

The Technological Boom of Latin America: Fintech and Brazil Lead the Change

A new study by Distrito reveals the explosive growth of the startup ecosystem in Latin America, with Brazil and the FinTech sector taking center stage. Over 33,000 active startups and 45 “unicorns” signal the region’s high potential.

• the number of startups has increased by a factor of 60 since the 2000s, reaching a total of 33,489 companies.

• Brazil dominates the space with more than 13,000 active startups, accounting for 62.9% of the total.

• Fintech has emerged as the most critical sector in the region, followed by Retailtech and Martech. (Contxto)

Fintech Summit Latam: Reimagining Financial Services for the Future

Over two intense days in Mexico City, experts and entrepreneurs gathered to discuss the impact and challenges of digitalization in the financial world, from regulation to financial inclusion.

• The Fintech Summit Latam took place at the Centro Asturiano in Mexico City, serving as a stage to discuss the future of financial services.

• Artificial Intelligence (AI) was a recurring theme, highlighting its role in driving efficiency and innovation in fintech and the risk it poses in terms of fraud and other digital crimes.

• The first day of the event focused on topics like the future of fintech and digital banking in Mexico, the role of traditional banks in the digital ecosystem, and the benefits of Open Banking for both businesses and consumers. (Contxto)

Nubank to Launch Personal Loans in Mexico

Nubank, a leader in Latin America’s fintech sector, is introducing personal loans in Mexico. The new service, available in under five minutes, aims to strengthen its portfolio in the region’s second-largest economy.

• This new product will allow customers to obtain personal loans in less than five minutes through the bank’s digital platform.

• The announcement comes shortly after the successful launch of Nubank’s savings account service in Mexico in May, which attracted more than one million users in just one month. (Contxto)

Serasa Experian Expands its Portfolio with the Acquisition of FlexPag in Brazil

In a strategic move to diversify its operations and accelerate the democratization of credit access, Serasa Experian announced the acquisition of FlexPag, the fintech specialized in utility services.

• While the financial details of the transaction have not been disclosed, the purchase will allow Serasa Experian to implement a new feature called “My Accounts” in its mobile application, which currently has 83 million users.

• FlexPag is the ninth startup to receive capital from Serasa Experian.

• Serasa Experian seeks to consolidate its position and support more consumers and companies on their financial journey, mainly when investors prioritize profitability over growth at all costs. (Contxto)

Colombian neobank Nequi launches customizable policy

Nequi, the digital subsidiary of Bancolombia, launched “Segurísimo”, a customizable policy where each insured individual may choose up to two insurances in their name.

• Nequi currently has 16 million users who can purchase Segurísimo through the Nequi App.

• The insurance lasts six months and is paid in a single semi-annual installment, covering the insured and a beneficiary of their choice without needing it to be a family member. (LatamList)

Fintech South Hub: Find out the details of the Summit on September 14 in Uruguay

Latin America is preparing to welcome the leading players in the fintech industry at the first Fintech South Hub meeting, scheduled for Thursday, September 14 at the Antel Arena in Uruguay, according to a press release.

• The event, co-organized by the Uruguayan Fintech Chamber and the da Vinci Foundation, will bring together leaders and entrepreneurs shaping the financial solutions landscape in Latin America.

• Those interested in attending can purchase tickets through AccesoFácil. In addition, the Main Stage talks will be streamed live on the da Vinci Foundation's YouTube channel. (Tekiosmag)

Alprestamo expands and will participate in important events in the region

As part of its strategy of territorial expansion and to publicize its solution to facilitate access to financial products, the fintech Alprestamo, announced its presence and participation in various meetings and fairs in Latin American markets.

• The first of the events in which fintech will be present will be Fintech South HUB.

• Later, in Mexico City, Pablo Blanco, CFO of the company, will be present at FinnoSummit on September 26th and 27th.

• The fifth edition of Latam Fintech Market, Colombia's most influential digital financial technology event, will take place on the 28th and 29th. (iProUp)

Blockchain Summit Latam presented its agenda for 2023

As part of the seventh edition of Blockchain Summit Latam, the city of Bogota, Colombia, is preparing to receive more than 1,500 participants in what promises to be a great event related to Cryptocurrencies, Blockchain and Web 3 in the Latin American region.

• The event will feature a main stage where panels and individual talks by keynote speakers will be held.

• There will be two parallel scenarios, one focused on entrepreneurship and the web ecosystem3, with 15-minute presentations by Latin American investment funds and entrepreneurs, and another with one-hour practical workshops on using platforms, wallets, and other ecosystem tools. (Cryptocity.press)

Galileo launches 'More Cashless Cash' to promote Cashless ecosystem in LATAM

As part of the program, Galileo will develop content to position electronic media as the logical alternative to cash in various everyday situations.

• This initiative aims to increase confidence in cashless transactions and broaden awareness of the benefits of security, traceability, and control for various industries beyond traditional fintech audiences and channels.

• Galileo developed a user-friendly and relatable view of available cashless solutions. Segments to be examined include consumer household finance, remittances, B2B transactions, multilevel sales, microfinance, and tourism, to name a few. (almomento.mx)

Fintech Education

1. Blockchain: Fundamentals and applications for business optimization. You will understand the general functioning of blockchain technology and its differences: private, public, and hybrid.

2. Blockchain: Commercial Applications. Explore the fundamental rules and features of blockchain technology and its potential commercial applications for your business.

3. Investment Management: Investing With Data and Technology. Gain the knowledge and skills to make smarter, safer and more effective investment decisions.

Food for Thought

1. Open Data: Golden opportunity for Fintech

   What is Open Data and how does it benefit Fintechs? Get an in-depth understanding of what Open Finance regulation in Mexico and Latin America is all about.

Jobs

Product Manager- Mobile (Remote) @Jeeves (Remote)

Sr. HR Business Partner @Jeeves (Location)

Ops Engineers @Fintual (Remote)

Corporate and Strategy Director @Stori (Remote)

People Operations Director @Stori (Remote)

Circle Introduces Its Stablecoin USDC on Mercado Pago in Chile

Mercado Pago, known as the most prominent fintech in Latin America and a subsidiary of Mercado Libre —often likened to Amazon in Latin America due to its millions of users— has begun to offer support for USDC, choosing Chile as the first market for its roll-out through Circle.

Circle’s CEO, Jeremy Allaire, likened Mercado Libre to the Latin American counterpart of Amazon, boasting a user base of 200 million. He announced the inclusion of USDC into Mercado Pago, Mercado Libre’s payment solution, through a series of posts on X.

USDC is a stable coin tied to the value of the U.S. dollar and is one of the most widely adopted stable cryptocurrencies. Its introduction to the Chilean platform signifies the increasing importance of cryptocurrencies and the U.S. dollar in Chile. This is especially noteworthy, considering the U.S. dollar is not as commonly accepted as a direct payment method in Chile compared to other Latin American countries.

Vía Contxto

Quick News

Monnet Payments: the Peruvian fintech that says goodbye to ecommerce cashback delays

It can take between 10 days and a month to get the money back for purchases made online, either because the customer did not like the product, because of lack of stock, or because the event for which the ticket was paid was canceled.

• Monnet Payments is a platform that allows you to manage mass payments: whether for refunds, third-party payments, freelancers, or influencers, among others. Everything that has to do with payment management in companies to many users.

• The primary services offered by the startup are payouts, pains, and a regional wallet.

• The company currently has around 150 employees and more than 130 clients worldwide. It began operations in Chile, Ecuador, and Peru, and is now present in Argentina, Colombia, Honduras, Mexico, Guatemala, and Panama. (DFSud)

BBVA: Digital payments or cryptocurrency FinTech to be worth USD$324 billion by 2026

BBVA said that investment in FinTech shows that the sector is growing 25% each year, which is explained by the "boom" in business models related to Open Banking and B2B financial or payment solutions.

• Latin America has become a "pole of attraction" for investors from other countries, such as Spain, where 76% of its companies increased FinTech investments in the region.

• In three years, the region went from having 1,160 to 2,500 FinTechs, while the region's economy is growing 37% annually. (Cryptocity.press)

CarroYa Expands Its Mobility Ecosystem with the USD$21 Million Acquisition of FacilPass

CarroYa, the innovative mobility ecosystem backed by Grupo Aval, has achieved another milestone by purchasing 100% of the shares of FacilPass, the electronic payment platform for tolls in Colombia.

• The acquisition, valued at USD$21 million, will enable users to request, recharge, and check the balances of toll tags, all through CarroYa’s mobile app.

• The acquisition of FacilPass aligns with the growing participation of the middle class in the technological ecosystem, particularly in e-commerce and fintech

• The integration of FacilPass will allow users to perform all their mobility transactions in one place. (Contxto)

Serasa Experian Expands its Portfolio with the Acquisition of FlexPag in Brazil

In a strategic move to diversify its operations and accelerate the democratization of credit access, Serasa Experian announced the acquisition of FlexPag, the fintech specialized in utility services.

• While the financial details of the transaction have not been disclosed, the purchase will allow Serasa Experian to implement a new feature called “My Accounts” in its mobile application, which currently has 83 million users.

• FlexPag is the ninth startup to receive capital from Serasa Experian.

• Serasa Experian seeks to consolidate its position and support more consumers and companies on their financial journey, mainly when investors prioritize profitability over growth at all costs. (Contxto)

How can Colombian Banks and Fintechs expand their business in Latin America?

Colombia is now a highly competitive market, recently becoming, along with Brazil and Mexico, the country with the most advances in fintech regulation in the region.

• There are currently 400 fintechs, 28% of which are Lending and 20% Payments and Remittances.

• Engage a provider that offers integration with local banking systems, payment gateways, and other financial service providers to offer a seamless experience. (American Retail)

Mexico can be Latin America's fintech hub: Finance Ministry

Gabriel Yorio González, Undersecretary of Finance and Public Credit, said that Mexico has the potential to be one of the main financial and technological hubs in the region and later in the world.

• The Ministry of Finance will activate the Financial Innovation Group to promote and develop innovation, sustainability, inclusion, and education within the digital financial services ecosystem.

• Mexico is emerging as fertile ground for the fintech industry's growth, driven by a large unbanked population and a high rate of cell phone ownership. (Milenio)

My First Bitcoin will bring its educational program to Cuba

Education about Bitcoin (BTC) continues to break frontiers. The organization Mi Primer Bitcoin announced the arrival of its course on the first cryptocurrency and its technology in Cuba, the Caribbean island where this asset has been gaining relevance.

• The My First Bitcoin course in Cuba will have limited places for students.

• The educational program in Cuba will be totally free, as it is in other countries, and will include 7 Saturday meetings from 10:00 am to 1:00 pm.

• On the island, businesses and premises are authorized to accept Bitcoin as a means of payment. (Cryptonoticias)

All that fintech investment had a real impact on banking penetration in Latin America

In Latin America, fintech has long been a sector that startups have loved to tackle. It is not hard to understand why: The region was, and remains, significantly underbanked than many other large countries.

• In Latin America, fintech has long been a sector that startups have loved to tackle. It is not hard to understand why: The region was, and remains, significantly underbanked than many other large countries.

• In Latin America, fintech has long been a sector that startups have loved to tackle. It is not hard to understand why: The region was, and remains, significantly underbanked than many other large countries. (TechCrunch)

Wenance's CEO added another criminal complaint for fraud, illicit association, and money laundering

The CEO of the fintech company Wenance, Alejandro Muszak, filed a new criminal complaint. A dozen former clients filed a complaint against him in the Comodoro Py courts for fraud, illicit association, and money laundering, among other crimes.

• Among the cases reported is that of a former Wenance employee who invested in the company.

• Wenance stopped paying dividends, according to a complaint filed by several investors to the Uruguayan Attorney General's Office. (Infobae)

Fintech Education

1. University of Hong Kong: Blockchain and FinTech: Basics, Applications, and Limitations. Understand the design rationale of blockchain technology and its emerging platforms and applications and uncover the limitations and opportunities enabled by blockchain applications, particularly as they relate to finance.

2. The University of Texas at Austin: Fintech: AI & Machine Learning in the Financial Industry. This is the third in a series of courses on financial technology, also called Fintech. This course provides an overview of machine learning applications in finance.

3. FinTech for Finance and Business Leaders. The practical skills needed to understand and implement adequate cyber security, machine learning using Python and robotic processes, and intelligent automation in the finance function.

Food for Thought

1. Biometrics changing the face of finance in Latin America

   In 2022, around 203 million people used digital banking services, which is expected to reach 216.8 million by 2025. Digital banking requires remote authentication, which is why the biometric market worldwide has already reached USD$42.9 billion —a figure that will continue to grow exponentially!

Jobs

Capital Markets Director (Remote) @Jeeves (Remote)

Capital Collections Specialist @Stripe (Location)

Corporate and Strategy Director @Storicard (Hybrid)

Online Growth Vice President @Frubana (Remote)

Data Scientist @Clara (Remote)

Belo Implements Corporate Payments with ACH Dollar Transfers

Belo, the digital wallet aiming to transform the international payments sector, introduces its web platform specially designed for businesses. With this new launch, companies from 108 countries can open a free account on Belo, enabling them to make transactions in pesos and cryptocurrencies and to send dollars to foreign accounts.

According to Manuel Beaudroit, CEO and Co-founder of Belo, this initiative aims to alleviate the difficulties that Micro, Small, and Medium Enterprises (MSMEs) in Latin America face when conducting international transactions. “We offer tools to simplify and speed up sending money abroad,” Beaudroit highlighted in a press release.

In Latin America, 70% of businesses lack a digital payment option. Thus, the new ACH transfer functionality joins existing options that allow businesses to store value and charge for goods and services. Belo has also recently added the Pix payment option, a popular method in Brazil, and has allowed the conversion of corporate funds into stablecoins like USDC, USDT, or DAI.

Vía Contxto

Summer is falling, and Fintech Summit Latam is coming

On August 31st and September 1st, key players from the digital financial industry will gather in Mexico City to accelerate business and partnerships and provide benchmarks on the challenges and promises for the Fintech sector from and towards Latin America. Contxto will be there, so we can discuss your new projects, fundings and other happy-startups ventures.

Forty speakers from Colombia, Argentina, Ecuador, Chile, Brazil, and the United States will participate.

The meeting will introduce new players, initiatives, and trends that are changing the future of the regional financial sector.

The main focus will be technologies, regulations, and convergence with other industries impacting financial inclusion, such as Fintelcos (mobile operators), Openfinance, and FaaS.

It's an excellent opportunity for networking, connecting with top-tier speakers, and staying at the forefront of financial technology in Latin America.

Click the image below to get your discounted tickets! 👇

Quick News

OnePay introduces payments through WhatsApp

Colombian fintech OnePay has introduced a new payment method that integrates directly with WhatsApp, eliminating intermediaries and simplifying payments.

• The company specializes in offering B2B payment solutions.

• Its new product provides a secure and reliable alternative, enabling customers to pay without sharing card information and facilitating an easy registration process.

• OnePay offers a platform for businesses to manage their collections, along with an API enabling them to seamlessly integrate WhatsApp payments into their website. (LatamList)

Nomad raises USD $61 million, Latin America's largest round of 2023

Nomad, the Brazilian fintech, achieved the largest financing round in Latin America this year: USD$61 million.

• Tiger Global Management led the Series B round, including Stripes, Monashees, Spark Capital, Propel, Globo Ventures, and Abstract.

• This raise brings Nomad's market value to about USD $365 million.

• Nomad was the first to introduce a free global digital account for the Brazilian retail market in the United States. (Tekiosmag)

Ualá launches Uilo, its new chapter in the fintech industry

The fintech Ualá, which had acquired the digital bank Wilobank, which belonged to the Eurnekian Group, relaunched the entity in Argentina under the Uilo brand.

• This is a new product that the Argentine fintech added to its product ecosystem. It starts with an app and a card.

• Uilo will offer a free savings account with cashback of 5% on all purchases, up to a maximum of MXN$50,000 per month (currently around USD$142).

• The company already has over 5 million users in the country and operates in Mexico and Colombia. (Tekiosmag)

Prestamype secures USD $5M in Pre-Series A funding round

Peruvian fintech Prestamype raised USD$5M in a Pre-Series A round led by ALIVE Ventures and Oikocredit.

• Other participants include Salkantay Ventures, Inca Ventures, AVP Ventures, and angel investors.

• Their goal is to solidify Prestamype’s leadership in the micro and small enterprises segment and drive innovation in the financial landscape for this group.

• Currently serving over 4,000 clients, Prestamype has disbursed USD $43 million to entrepreneurs in the first half of this year alone. (LatamList)

Brazilian fintech Cumbuca secures USD $3M in funding

Cumbuca, a Brazilian fintech, raised $3M in a round led by Lightspeed Venture Partners. It is the first investment the US VC has made in Brazil.

• The company plans to use the funds to implement payment transactions (ITP) in the app and create a debit card for the country.

• Cumbuca, launched early last year, uses a  “multiplayer banking” model where users have individual accounts but can see shared money usage.

• Users can create multiple groups and invite friends via the app. By the end of 2022, they had 25,000 users. (LatamFintech)

WealthTech Magnetis, a high-yield digital asset manager, has been acquired by BTG Pactual in Brazil

BTG Pactual has returned to the acquisition market and agreed to buy Magnetis. This 100% digital asset manager uses robo-advisors to define allocation strategies and is considered a pioneer in this segment in the country. The value of the transaction has not been disclosed.

• the acquisition is part of the bank's strategy of expanding its digital platforms, increasing its customer base, and advancing the offer of individual products and services.

• The company, which also operates as a broker and serves high-income clients, has as its leading investors Monashees, Vostok Emerging Finance, Redpoint ventures, and Julius Baer, one of the world's largest wealth management groups, which are now selling their stakes. (LatamFintech)

DeFi TraderPal's Fintech partners with Vector Capital and Voultech to reach more countries in Latam

TraderPal LLC, the renowned investment application aimed at the Latin community, has signed a strategic agreement with Vector Capital Corredores de Bolsa in Chile, and its technology arm for the region, Voultech.

• This alliance will expand TraderPal's reach to more countries in Latin America and the world, bringing investments to an even wider audience.

• Collaboration with Vector Capital and Voultech will enable more people across the region to access high-quality investment tools. (LatamFintech)

Barranquilla opens its doors to the Latam fintech Market

The fifth edition of Latam Fintech Market, an event focused on technology and finance, will occur at the Puerta de Oro Convention Center on September 28 and 29.

• The event will be attended by more than 1,200 national and international participants.

• This scenario aims to raise awareness of what fintech is and for Barranquilla users to understand the benefits of accessing a digital wallet and how this can help their quality of life and economy. (El Heraldo , Barranquilla)

Citigroup moves forward in the region and buys a stake in Peruvian foreign exchange fintech company

Citigroup has acquired a stake in Peruvian foreign exchange company Rextie, its first financial technology investment in Latin America.

• Terms of the deal were not disclosed, but Citi and Rextie executives said the bank is injecting cash into the company to fund its growth.

• Rextie would be the first financial technology company in Latin America to receive an investment from the bank. (DFSud)

Fintech Education

1. Fintech: Foundations & Applications of Financial Technology. Wharton's Fintech Specialization is designed to introduce you to the fundamental building blocks of financial technologies and real-world applications through case studies of Wharton-led companies in the field. You'll learn the essential components of technology-driven financial strategies, from complex regulations to cryptocurrency to portfolio optimization.

2. Innovation in Finance: Fintech and Blockchain. Recognizes the new financial ecosystems. Understands concepts such as artificial intelligence, open banking, APIs, and neobanks, which are shaping new ecosystems. Understands the potential of new technologies. Manages the profound change processes that are taking place in financial functions: data science, blockchain, etc.

3. Fintech: AI & Machine Learning in the Financial Industry. YThis is the third in a series of courses on financial technology, also called Fintech. This course provides an overview of machine learning applications in finance.

Food for Thought

1. Interview Jorge Solís SUMMIC 2023: Future of Microfinance in Latin America

   Jorge Solís, President of the Federation of Peruvian Municipal Savings Banks, gave us an overview of the microfinance universe in Latin America and the Caribbean.

   The interview took place within the framework of the SUMMIC 2023 Microfinance Summit. We also explored the current outlook and the crucial challenges facing the sector.

Jobs

Sales Head - Brazil @Provenir (Remote)

Fintech Product Owner @SeedTS (Location)

Director, Business Development Fintechs @Mastercard (Hybrid)

Celes: Leading player in the retail analytics scene

The digital era has been transforming the retail sphere for two decades. In this evolving scenario, Celes stands out as an emerging pillar in data analytics for companies from the needs of a market that in Latin America represents a challenge.

Founded in 2019 by Luis Almanza, Luis Ballestas, and David Florian, Celes is a Colombian startup that has rapidly evolved since its inception to become a key player in Software-as-a-Service (SaaS) in its country and throughout Latin America. And as part of an organic expansion phenomenon, even beyond the region.

Celes primarily targets medium-sized retailers and has expansion plans for its sales team in various segments, from pharmacies and hardware stores to supermarkets and clothing stores.

When they started in 2019, Celes billed only USD$2,100 monthly. Four years later, the company bills around USD$40,000, resulting in a monthly compounded growth of 85% between the markets of Colombia and Ireland.

Vía Contxto

Summer is falling, and Fintech Summit Latam is coming

On August 31st and September 1st, key players from the digital financial industry will gather in Mexico City to accelerate business and partnerships and provide benchmarks on the challenges and promises for the Fintech sector from and towards Latin America. Contxto will be there, so we can discuss your new projects, fundings and other happy-startups ventures.

Forty speakers from Colombia, Argentina, Ecuador, Chile, Brazil, and the United States will participate.

The meeting will introduce new players, initiatives, and trends that are changing the future of the regional financial sector.

The main focus will be technologies, regulations, and convergence with other industries impacting financial inclusion, such as Fintelcos (mobile operators), Openfinance, and FaaS.

It's an excellent opportunity for networking, connecting with top-tier speakers, and staying at the forefront of financial technology in Latin America.

Click the image below to get your discounted tickets! 👇

Quick News

Klar strengthens its presence in Mexico with a USD$100 million credit line

Klar aims to capitalize on Mexico's underbanked population by expanding its services, fueled by a substantial credit line from Victory Park Capital.

• Klar secures a USD$100 million credit line from U.S. based Victory Park Capital to expand in Mexico.

• The country has one of the lowest banking rates in the region, making it a ripe market for fintech growth.

• CEO Stefan Moller reveals plans to potentially offer loans up to MXN$40,000. (Contxto)

Latin America: 300 million Fintech users expected

The study reveals promising prospects for fintech in Latin America, as digital adoption is expected to skyrocket in the coming years.

• Statista study forecasts transformative growth in Latin America's fintech sector, with user base potentially exceeding 300 million by 2025.

• This signifies a major shift towards digital and technological financial solutions in the region.

• Ebanking news portal emphasizes the significance of this migration for the fintech landscape. (Cointelegraph)

Bamboo Payment announces partnership with InDrive

Bamboo Payment's new partnership aims to streamline payment procedures for InDrive's customers in multiple LATAM countries, while also mitigating common international transaction concerns.

• Bamboo Payment partners with ride-hailing service InDrive to provide instant payment solutions in Argentina, Peru, and Chile.

• The Uruguayan fintech aims to simplify international online transactions, addressing issues like complex cross-border settlements and high fees.

• The company also offers integrated payment processes and fraud prevention measures. (LatamList)

The number of cryptocurrencies falls for the first time in 2023

The chart from Statista based on data from CoinMarketCap and Investing.com that you can find on the link, shows that the number of cryptocurrencies available fell for the first time since the hype around digital currencies began.

• In June 2023, analysts recorded about 10,049 different coins and 12 months earlier, the peak reached about 10,830.

• This could be a sign that investors have little interest in digital assets at the moment and that perhaps the sector is losing momentum. (Tekiosmag)

Finnovista Fintech Radar is looking for fintechs with operations in Argentina and Peru

Finnovista, a key platform for fintech innovation, is opening doors for startups operating in Argentina and Peru to gain increased visibility and credibility. By inviting them to be part of the upcoming Finnovista Fintech Radar, the platform provides a valuable opportunity for these startups to showcase their capabilities and make an impact in the region.

• Finnovista invites fintech startups in Argentina and Peru to participate in the next edition of the Finnovista Fintech Radar.

• The open call aims to enhance the visibility of fintech startups and give them a significant boost in the regional landscape.

• The deadline for companies to register and submit their profiles is September 12, offering a chance to be featured in influential reports.(Tekiosmag)

Brazilian technology company Matera acquires Cinnecta to offer financial solutions with AI

The Brazilian company Matera, specialized in finance software, completed the acquisition of Cinnecta, a company that develops solutions focused on customer loyalty and profitability through data intelligence.

• By formalizing the deal, Cinnecta complements Matera's portfolio by developing AI-based solutions that strengthen its customer experience. (Tekiosmag)

Tenpo will now compete in Chile with traditional banks

Payments and banking services platform Dock entered the Chilean market through digital bank Tenpo, which became the ninth market for the Brazilian unicorn in the region.

• It currently operates more than 70 million active accounts and processes more than USD$240 billion annually.

• In addition to Brazil, the company is present in Mexico, Argentina, Colombia, Ecuador, Peru, Panama and the Cayman Islands. (Gestión)

Bitso Launches New Payment Service For These Latin American Countries

Bitso, a renowned Mexican cryptocurrency exchange, announced the launch of its new international payment service, which will use blockchain technology and digital assets to provide users in LATAM with another way to send and receive money.

• The product will first be available in Mexico, Argentina, Brazil, Colombia and the United States.

• The service is expected to make cross-border payments much more efficient, cost-effective and expeditious. (CoinGape)

How is the fintech industry in Latin America shaping up and evolving?

In light of the boom of this industry, the firm Deloitte presented the study The Fintech Industry in Latin America, which presents an analysis of the recent development of the sector in the region.

• The report analyzes the five countries that have shown the best performance: Brazil, Mexico, Colombia, Argentina and Chile.

• Also shows how other geographies such as Central America and the Dominican Republic are doing.

• According to the report, the sector expanded due to several factors such as the COVID-19 pandemic, greater government interest in the subject and others, such as the interest of the users themselves. (Estrategiaynegocios)

Fintech Education

1. HarvardX: Curso virtual de FinTech de la VPAL de Harvard. This online short course offers an up-to-date view on the advancement of the financial technology industry. It provides expert guidance and information on the changing nature of the financial sector and a comprehensive understanding of the technologies and innovations set to shape the future of finance and business.

2. FinTech for Finance and Business Leaders. You will learn yhe practical skills needed to understand and implement effective cyber security, machine learning using Python and robotic process and intelligent automation in the finance function.

3. FinTech. You will learn what FinTech is and how it is transforming the world of finance around the world. Understand the major technologies involved in FinTech and the major players in the market, including startups, TechFins, traditional financial institutions and regulators. Learn about blockchain, its design, uses, potential and limitations.

Food for Thought

1. Creating an innovation culture in banking

   In this i-Talks, we have the presence of Mariel Vazquez, Head of Innovation & Growth of HSBC Mexico, Mariel will share her inspiring professional story and give us practical advice on how to create and cultivate a culture of innovation in banking. (InnovaLab Academy)

Jobs

Sr. Director - Customer Experience, Banking & Fintech @Sutherland (Remote)

Visa Government Solutions Sales Lead - Brazil @Visa (Location)

Director, Business Development Fintechs @Mastercard (Hybrid)

Ecommerce Fraud Skyrockets in Mexico: 68% Increase

The recent research conducted by Signifyd, a company providing anti-fraud solutions for ecommerce, has identified an alarming increase in fraud pressure in Mexico over the last three months.

Fraud pressure and fraud attempts targeting merchants increased by 68% in June 2023 compared to April of the same year. Additionally, there was a 106% increase compared to May 2022. This growth has been especially notable in the fashion category, where fraudsters are betting on products and shopping carts with higher values, reflecting a 19% increase in fraud pressure in sales volume.

With the ecommerce boom in Mexico, the country has experienced significant growth in the online retail market. The Mexican Online Sales Association (AMVO) reports that in 2022 the market value reached MXN$528,000 million, with an increase of 23%. Moreover, more than 63 million people in Mexico purchase products and services online.

Vía Contxto

Summer is falling, and Fintech Summit Latam is coming

On August 31st and September 1st, key players from the digital financial industry will gather in Mexico City to accelerate business and partnerships and provide benchmarks on the challenges and promises for the Fintech sector from and towards Latin America. Contxto is gonna be there, so we can talk about your new projects, fundings and other happy-startups ventures.

40 speakers from Colombia, Argentina, Ecuador, Chile, Brazil, the United States, and others will participate.

The meeting will introduce new players, initiatives, and trends that are changing the future of the regional financial sector.

The main focus will be on technologies, regulations, convergence with other industries that impact financial inclusion, such as Fintelcos (mobile operators), Openfinance, FaaS, among others.

It's a great opportunity for networking, connecting with top-tier speakers, and staying at the forefront of financial technology in Latin America.

Click the image below to get your discounted tickets! 👇

Quick News

Paymentology and DolarApp Join Forces to Offer Commission-Free Dollar Purchases to Mexicans. In a significant advancement for Mexican consumers, Paymentology, the renowned card issuer-processor, has partnered with DolarApp, a Mexican startup that provides digital dollar accounts in Latin America. The union between these two financial entities will allow millions of Mexicans access to a credit card denominated in dollars, without foreign exchange (FX) commissions, and with transparent market rates (Contxto)

Bitwage implements the TRON network on its platform in Argentina. Bitwage announced the official launch of the TRON network in the first week of August. This development enables users in Argentina and across the globe to have more networks available for receiving their digital dollar salaries, providing the necessary liquidity and compatibility for economically moving in the market when exporting digital services. With this new implementation, users and businesses can access their digital dollars like USDT without incurring GAS fees for sending, translating to a total cost of 3% for USDT, the currency that the new network will initially be available in, according to a press release. (Contxto)

Thought Machine Expands to South America Through Chilean Cordada. Thought Machine, the London-based cloud banking technology company, announced its expansion in Latin America through Cordada, a Chilean company that offers solutions for fintech and lenders serving SMEs in the region – and its most recent client. Cordada, which operates in Chile, Peru, and Mexico, plans to leverage Thought Machine’s Vault platform to enter new markets and expand its loan solutions. (Contxto)

Lemon facilitates access to USD$ in Latin America by integrating Stellar network. Lemon, a virtual wallet with a VISA card to pay in pesos or cryptocurrencies, is integrated with the Stellar network to send or receive USD$ quickly and cheaply from anywhere in the world. Since its creation in 2014, the network processed more than 3 billion transactions between almost 7,400,000 million individual accounts and now seeks to facilitate the use of the cryptocurrency in the region through a 100% interoperable blockchain. (iProUp)

Educbank raises USD$14 million in securitized bonds for school fees. Brazilian fintech Educbank, focused on prepaid receivables services for primary education schools, raised US$14 million through securitized debentures in school fees. Unlike the Series A raised last year, the company now raised funds through debentures (a long-term debt instrument used by large companies to borrow money at a fixed interest rate), fully securitized into school fees. (Tekios)

Cashbanx secures USD$4.1M round. Brazilian fintech Cashbanx secured a USD$4.1M round led by SRM Ventures. With these funds, the company plans to scale its operation. Cashbanx is an affiliate B2B platform that allows banks and fintech to offer cashback incentives to their customers. The startup has over 500 customers in Brazil and recently started to serve clients in the United States. (LatamList)

The Colombian Financial Superintendency, approved the license for the investment fintech Bunker. Automation comes to investments in Colombia; on June 29th, the Financial Superintendency of Colombia approved the license for Bunker, a startup that has developed a technological solution based on big data and artificial intelligence to allow investors access to the U.S. stock exchange, improving their clients' access to the most sophisticated and secure market in the world. (América Retail)

Brazil has the largest fintech companies in Latin America, with 771 companies. Brazil has the most significant number of fintech in Latin America. It has 771 companies, representing more than 30% of the region's total, and accounts for 58% of venture capital transactions in Latin America. In addition, the most prominent digital bank on the continent was born in that country, Nubank, which has a valuation of USD $48 billion and has already made its debut on the New York Stock Exchange. (LaRepública)

PayPal launched PYUSD, its own digital currency pegged to the dollar exchange rate. A recent report by Alianza Fintech Iberoamérica unveiled a remarkable statistic: 1 in every 4 Fintech companies worldwide originates from Latin America. The region’s financial technology sector has witnessed exponential growth, accounting for approximately 26% of all Fintech companies globally, including those in Spain. With 1,635 startups founded in Latin America, this surge in Fintech companies demonstrates the region’s prowess in transforming the financial landscape through technology. (Tekios)

Fintech Education

1. Blockchain and FinTech: Basics, Applications, and Limitations. The course aims at targeting a broad audience: This course will provide learners a good understanding of the technological, applicability, limitations, and "illegal" usage of blockchain technology.

2. Fintech: Disruption in Finance. The online short course prepares you to understand better, interpret, and respond to the disruptions and opportunities within the financial market. With a holistic approach to the financial industry, this course provides an overview of the main fields of technological disruption, such as blockchain, artificial intelligence (AI), and big data.

3. Fintech: AI & Machine Learning in the Financial Industry. This is the third in a series of courses on financial technology, also called Fintech. This course provides an overview of machine learning applications in finance.

Food for Thought

1. Web3 impacting Ecommerce for Payments

   Atilio Cerban is CEO & Co-Founder of Oneinfinite, former CEO & Co-Founder of Mobbex, serial entrepreneur and has extensive experience in the Fintech industry. Cerban habla de Oneinfinite. Cerban talks about Oneinfinite, Startup that has just launched and comes to add payment options for end consumers in ecommerce checkouts, solving cross-border payments pains, among other value propositions that they have in their roadmap.(Axel Entraigas)

Jobs

Vice President of Sales @Storm2 (Remote)

Head of legal @Revolut (Remote)

Chief Financial Officer @Klimate (Location)