Friday Briefing: Inter gets green light for migration to Nasdaq

May 13, 2022

#TopStory 🔝

Inter gets green light for migration to Nasdaq

Shareholders of Brazil’s Inter approved the bank’s proposal to transfer its share listing from the Brazilian Stock Exchange B3 to Nasdaq, the world’s second largest stock market.

The shares should be listed on the U.S. exchange by late June, Alexandre Riccio de Oliveira, Inter’s COO and vice president of technology, operations and finance, told iupana.

“The voting process went really well; 85% of the shareholders present voted in favor of the transaction, which is very positive,” Riccio de Oliveira said.

It was the second time Inter put the relisting proposal to shareholders. On the first occasion in late 2021, more investors than expected opted to cash out their shares rather than swap them for new U.S. ones, and the bank had to impose a cap. CFO Helena Lopes Caldeira had said in February Inter was drawing up a new proposal and was very confident it would win shareholder support.

Honeymoon between fintechs and regulators in Mexico

After several disagreements over permitting, the Mexican securities regulator and fintechs appear to have found middle ground. This week, six companies received their license—a record number that compares with just 20 approvals in 2021, a situation that lead to complaints the process was onerous and slow.

Among the new licensees are Mercado Pago, part of Argentina’s e-commerce giant Mercado Libre. It followed two years of evaluation by the National Banking and Securities Commission (CNBV), the Central Bank and the Ministry of Finance.

“They do a good job. But all of that means things proceed slowly, or
not at the desired pace,” Marco Pérez, legal director of Mercado Pago Mexico, told iupana.

The pandemic made communication with the regulator difficult but the outcome was positive, and the rigorousness of the process is understandable, Pérez said. “It has to ensure the safety of users, transparency, and that you are really able to operate properly in the market.”

So far, 33 fintechs have received operating licenses, of which 19 are electronic payment fund institutions (IFPE) and 14 are crowdfunding institutions (IFCs).

This week’s list of licensees comprised:

• Mercado Libre (IFPE).
• Red Girasol (IFC).
• Yo te presto (IFC).
• Medá (IFPE).
• RinhoPay (IFPE).
• Albo (IFPE).

#Launches  🚀

Nubank offers crypto-based services

The Brazilian digital bank has partnered with blockchain startup Paxos to provide cryptocurrency-based services. Brazilian users will be able to buy and sell crypto assets such as bitcoin and ether.

Magazine Luiza debuts Fintech Magalu 

Brazilian e-commerce company Magazine Luiza launched Fintech Magalu, centralizes solutions for digital payments, card processing and smart POS. In addition, it introduced a credit card for companies and credit approvals for individuals via MagaluPay.

Geopagos works on PIX app

Geopagos, an Argentine payments fintech, is working on a mobile app for PIX while also developing Tap to Phone technology, which allows mobile phones to be used as payment terminals. Both solutions are set to be launched in about four months.

Mercado Pago offers investments in Brazil

Mercado Pago inaugurated a new service that lets users make investments from their wallet, in partnership with the digital platform Órama. The service is initially offering a low-risk product with a minimum investment of R$1.

Ignacio Estivariz, senior director of Mercado Pago in Brazil, said in an exclusive interview with iupana that it’s the first step towards a complete suite of investment services

Pomelo opens its doors in Colombia

Pomelo, a payments fintech from Argentina, began operations in Colombia. It also operates in Mexico and Brazil.

#Investments  📈

Colombia’s Habi and Brazil’s Dock achieve unicorn status

Colombian proptech Habi and Brazilian financial infrastructure company Dock joined the Latin American unicorn club, after achieving valuations of more than US$1 billion.

Habi closed a US$200 million Series C round led by Homebrew and SoftBank Latin America Fund and announced that it also has $100 million available for Habicredit, the fintech’s financing arm.

For its part, Dock raised US$110 million in a round led by Lightrock and Silver Lake Waterman. The proceeds will be used to continue the company’s international expansion and hire more talent in the region. Last December, Dock acquired Mexican fintech Cacao, after it failed to obtain an operating license.

Memtum closes US$4.2m pre-seed investment round 

Memtum, which enables investment services for other platforms through its API, closed an investment round led by Gradient Ventures, Google’s venture capital fund. The fintech will begin operations in Colombia by offering a collective investment fund and in Chile with options to invest in the local stock market.

#Regulation 📜

Panama studies interoperable payment system

[Exclusive] Panama’s Governmental Innovation Authority (AIG) is looking into what technical and regulatory measures are needed in order to implement an interoperable payment system

Also in the regulatory feed this week, iupanaPRO explains…

• The latest advances in Chile’s Fintech Law
• Why Argentine banks’ entry into crypto unraveled so quickly
• The implications of a new law in Argentina that raises compliance requirements for fintechs in an effort to level the playing field between wallets and banks for payments.

#DealMaking 💰

Scotiabank sells CrediScotia Financiera to Grupo Unicomer

The Peruvian arm of Canada’s Scotiabank sold its microfinance subsidiary, CrediScotia Financiera, to Grupo Unicomer, an El Salvadorean conglomerate that operates several retail brands, including La Curaçao and Radio Shack. Details of the transaction weren’t disclosed. The bank said it plans to focus on its core business in the country.

Ebury acquires Bexs Banco

Ebury, a British fintech that offers financial solutions for SMEs, bought 100% of Bexs Banco, a digital payments and remittance provider in Brazil, and Bexs Pay, its cross-border payment provider. The move is aimed at offering better solutions for international transactions focused on SMEs.

#iupanaExclusive 🔥

After achieving unicorn status for the Argentine wallet provider Ualá, founder Pierpaolo Barbieri is looking to invest in the next great Latin American startup through venture capital firm 17Sigma. In an exclusive interview, he also outlines the fintech’s expansion plans.

• Ualá Bis, a new payments initiative for SMEs in Mexico, plans to differentiate itself from the competition by offering lower fees and funds in real time
• The future of Ualá is in Mexico, where it will invest US$100 million while it waits for approval of a local bank acquisition

Find out more in this week’s iupana exclusive.

Over and out