Latam's Fintech: From Adoption of Stablecoins to Expansion of Mobility Ecosystems
Find out how USDC stablecoin integrates with Mercado Pago in Chile, Monnet Payments accelerates refunds and the latest acquisitions shake up the fintech ecosystem in Latin America.
Welcome to our weekly newsletter covering the latest news and trends in the Latin American Fintech startup scene.
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
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.
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.
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
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!
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