Friday Briefing: Investors seek a new generation of fintechs

The evolution of digital payments: the one-stop shop

The payment vertical is becoming part of a broader business solution, and companies that can offer a complete package of services to their customers under a “one-stop shop” model will have the edge.

That’s the view of Anderson Vera Fernandes, Brazil country manager at Geopagos, a fintech that develops digital payment acceptance infrastructure in LatAm. “A means of payment doesn’t work if it’s disconnected from other products,” he told iupana.

This trend of building multi-service ecosystems is in line with ERP Banking, which marries business management systems with fintechs and banks to generate predictive finance. It’s a model that’s expanding, particularly in Brazil, due to its ability to both adapt to the changing needs of businesses and capitalize on the benefits of open finance.

Fernandes said the digital payment vertical is being driven by what retailers demand: a solution that offers lots of services in a single place, such as access to credit, raising invoices and inventory consolidation. “All the providers are looking for that, even e-commerce companies such as Tiendanube that are creating solutions to accept payments and compete with Stone or Getnet,” he said.

#Strategic Plays

Ebury bolsters operations in Brazil, plots LatAm expansion

Ebury, a fintech specializing in payments and foreign exchange, will shore up its operations in Brazil with an expanded workforce and the launch of new products such as multi-currency accounts through Bexs, the Brazilian bank it acquired last year. Ebury is also keen to enter other markets in the region.

Mercado Pago launches investment fund for teens in Argentina

Mercado Pago created an investment product aimed at teenagers in Argentina. The fund, Fondo Común de Inversión, offers an annual yield of 76.3% and is part of the firm’s strategy to offer products that help offset the country’s rampant inflation.

Bunge launches agribusiness finance platform in Brazil

Commodity trader Bunge set up a fintech to provide financing for farmers in Brazil. Fincrop will use artificial intelligence to hone its credit analysis.

Also…

• In Brazil, BTG Pactual’s accelerator program, BoostLAB, named the six startups that will make up its 2023 intake. Data Rudder, ElloX, Fluid, LastLink, Streamshop and Turivius were picked from a list of 539 applicants and will receive mentoring and training from the bank’s business department and partners.

#Investments

Kiwi drums up US$80M for lending to Latinos in the US

Puerto Rican startup Kiwi raised US$80 million to boost lending to Latin American immigrants that lack access to banking services in the US.

Kapital lands US$65M

Mexican SME lending fintech Kapital raised US$65 million to finance investments in its technology platform and artificial intelligence, as well as for its expansion in Colombia. The fundraising included US$45 million in debt.

#People ‍ ‍

Yuno names CEO in Brazil

Colombian payment startup Yuno appointed Nathan Marion to be its new CEO in Brazil. He previously  worked at companies including Adyen, VTEX and Volt.

#iupanaExclusive 

Peruvian financial services company Credicorp introduced its first digital credit card product in Peru last month and is now planning to do the same in Chile via its local fintech Tenpo. The Chilean platform will use technology to offset lending risks in the current economic climate, according to Tenpo CEO Fernando Araya.

• Tenpo expects to receive a non-bank credit card issuer license in the coming days.
• Araya says the firm will draw on data from its user database to improve credit analysis.
• More than half of its 2.1 million users will be able to apply for a credit card.

Want to know more about the fintech that aims to become Chile’s first neobank? Read this week’s exclusive report.