Friday Briefing: Blockchain payments for mass consumption

February 3, 2023

#TopStory 🔝

Blockchain and crypto B2B: Coca Cola and Arcor eye opportunities

Kamay Ventures, the startup fund owned by Coca-Cola and Arcor, is closely monitoring the opportunities for using blockchain to simplify payments in their distribution networks.

Both beverage companies work with traditional cash-based trading systems that permeate from large distributors to small neighborhood businesses, which exposes the entire chain to slow, vulnerable mechanisms. That’s something they want to change.

“We can see crypto payment systems becoming an opportunity to generate payment solutions for
the companies that participate in distribution,” Antonio Peña, managing partner of Kamay, told iupana.

“Above all, because companies that already have a pre-existing relationship can participate in the ad-hoc solutions being implemented. In future, this would allow proven solutions to be brought to more players in the value chain,” Peña says, adding there are companies ready to invest capital in fintechs that develop such capabilities.

Coca Cola and Arcor, which both have a regional presence, are analyzing crypto projects and their potential role in collection as well as cashback opportunities.

“Funds have the capital and they need to invest it,” Peña says.

Look out for our weekly exclusive on Monday where we will expand on the interview with Kamay, including other investment opportunities identified by the fund.

At least 11,000 banks in the SWIFT network will migrate to the new ISO 20022 cross-border payment language.

In this report, we gather the opinions of Mexico’s digital banking leaders on building the next generation of digital payments💳

#Strategic Plays 📊

How is Open Finance going in Brazil?

Brazil reaches the second anniversary of its implementation of open finance with 15 million users. Looking ahead to this year, companies are planning to add insurance, investments, currencies and payment initiation to the open finance system. The Central Bank of Brazil highlighted that, if the country maintains its  current pace of adoption, it will soon surpass the United Kingdom, which is a global benchmark for open finance, according to a report where 23 countries were
evaluated.

Binance and Mastercard launch crypto card in Brazil

The crypto giant Binance teamed up with Mastercard to launch its Binance Card in Brazil. The prepaid crypto card, released in beta and issued by payment platform Dock, allows Binance users to make purchases with cryptocurrencies. The card is already in use in Argentina.

Mercado Pago expands remittance service in
Mexico

Mercado Pago established an alliance with Xoom, a PayPal payment service, with the aim of expanding the offer and scope of remittances in Mexico. The digital wallet also has an agreement with Western Union for the withdrawal of remittances.

Also…

• Bitso now gives users the option of exchanging Colombian pesos with USTD, a digital currency tied to the US dollar.
• Argentina’s Belo digital wallet now offers cryptocurrency payments in partnership with local payment fintech tapi.

#Investments 📈

Banorte invests US$21.5 million in Tuhabi

Mexican proptech Tuhabi received financing of MXN400 million (about US$21.5 million) from local lender Banorte to fund its expansion plans.

Vector Casa de Bolsa and Finnovista host fintech contest

Vector, a Mexican brokerage with
operations in 11 countries, and fintech collaboration platform Finnovista presented the second edition of the Objectivo Fintech award. The winner gets the opportunity for a potential business alliance with the brokerage firm, one-on-one meetings with investors, and US$100,000 in cash.

#People 🫂

PayRetailers debuts commercial director

Payment technology provider PayRetailers appointed Philippe Laranjeiro its new commercial director, with a view to bolstering its growth strategy. The executive previously held positions at Visa and Citcon

#iupanaExclusive 🔥

What does the new government of President, Luiz Inácio Lula da Silva mean for Brazil’s digital finance sector? Experts consulted by iupana analyze the likely priorities and challenges of the Lula administration, amid a highly charged political environment and with a tough global macroeconomic backdrop.

• One of the main challenges will be finalizing a regulatory framework for crypto assets.
• Congressional approval of a legal framework for loan guarantees, which is expected to expand the loan market for fintechs and digital banks, will also be closely watched.
• Spokespersons for industry groups say the president’s social agenda for financial digital inclusion seems promising for the sector.

Want to know more about the change of government in Brazil and its impact on digital finance? See this week’s iupanaExclusive for more details.