This week, we examine the growing global trend of digital currencies being developed by central banks. Also, Mastercard tests its artificial intelligence capabilities to prevent payment fraud, EBANX teams up with Nubank and Krealo invests in startups from Colombia, Peru and Chile.
Read the main note here: Central banks speed up work on digital currencies
#Strategic Plays
Mastercard uses AI to prevent payment fraud in real time
Mastercard has introduced functionality that uses AI and data collected from its account-to-account payment network to thwart a range of payment scams. In partnership with nine UK banks, including Lloyds Bank, Monzo and TSB, the card giant is using large-scale payment data to identify scams before funds leave a user’s account.
Asked about the solution’s rollout in Latin America, Mastercard told iupana that the consumer fraud risk feature was introduced in the UK a few months ago, but “results are very encouraging. Mastercard is beginning to assess which markets it will extend this latest AI powered technology to, but our immediate focus will be markets with mature real-time payment systems and challenges with authorized push payments fraud”.
Marqeta partners with Fitbank in Brazil
US card issuer Marqeta expanded into Brazil in partnership with banking-as-a-service (BaaS) platform Fitbank, which will act as a technology platform for local card issuance and payment processing. Visa is providing network certification. Marqeta already operates in more than 40 countries around the world.
EBANX and Nubank forge payment alliance
EBANX and digital lender Nubank forged a partnership under which the Brazilian paytech’s corporate clients, which include Airbnb, Shopee and Uber, will be able to use NuPay as a payment alternative for international transactions.
Puntored will buy Mexico’s Gestopago from
Colombian alternative payment specialist Puntored signed an agreement to acquire Gestopago, a Mexican company offering payment solutions and financial services, to broaden its participation in the ecosystem and serve the underbanked population in Mexico.
Also…
- In Nicaragua, fintech Tumoni began operations with a platform for sending remittances from the US to Central America for free.
- Core banking platform Mambu is expanding its partnership with Google Cloud by joining its marketplace, with the aim of getting more businesses to adopt its cloud technology.
#Investors
Credicorp kicks off startup accelerator
Krealo, the innovation arm of Peru’s Credicorp, launched a new accelerator program with funding of up to US$150,000, aimed at finding at least 10 new fintech startups in Colombia, Peru and Chile. The firms selected will receive a personalized advisory service and meet the heads of innovation at Banco de Credito del Peru, Credicorp’s banking arm.
Argentina’s INI receives investment from Kamay Ventures
Kamay Ventures, the corporate venture fund set up by Arcor and Coca-Cola, invested an undisclosed sum in Argentine fintech INI, which offers offline and online payments. INI plans to expand its solution and branch into new markets, initially Colombia, Chile, Peru and Brazil.
#iupanaExclusive
This week, we talk to fintechs catering to Brazilian agribusinesses to learn about the opportunities in digitalizing financial services for this buoyant industry. From startups that are connecting growers and financiers, to firms enabling the monitoring of crops via satellite to generate credit scores.
- An emerging group of agfintechs wants to fill gaps in the supply of financing for agriculture.
- A significant amount of credit for the sector comes from either the federal government’s Plan Safra program or local banks.
- The digitalization of account receivables is one use case that’s gaining momentum.
Read all about how fintechs are seizing the opportunities presented by Brazil’s vast farming sector in this week’s iupanaExclusive.