Brazil eases key requirements for fintechs
Brazil took fresh steps this week to strengthen its fintech ecosystem, the largest in the region. The Central Bank (BCB) relaxed deadlines for some startups to raise their prudential capital while making it easier for them to obtain a license, in a sign it is willing to accommodate new business models that display vigorous growth.
The deadline for the largest fintechs to increase capital was pushed back by six months. The BCB also gave some payment institutions (IP) more time to apply for an operating license. They will now have until 2029 to complete the process — a postponement of six years — depending on the size of their operation.
In both cases, the big winners will be the smaller fintechs, which will continue to operate with simplified requirements. And as for the largest companies, such as Nubank, Stone, PagSeguro and Mercado Pago, they’ve won more time to meet operating
requirements, although they will have to gradually increase their capital.
“They have become very large players that incorporate different financial activities and are beginning to offer products and services that are increasingly similar to those of banks,” Bruno Diniz, managing partner of Brazilian innovation consultancy Spiralem, tells iupanaPro.
At the same time, the BCB also approved the use of of Visa
cards for purchases via WhatsApp, a step towards freeing up the use of plastic on the application. Meta last week launched a new functionality for buying and making payments using the platform.
For Diniz, these movements are “inevitable and a reflection of how the fintech ecosystem has matured in recent years.”