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A Deep Dive into Fintech in Latin America




This week in Finovate Global we take a deep dive into the fintech ecosystem in Latin America through the lens of Rapyd, one of the companies that has been especially active in helping bring innovative financial services to the consumers of the region. We caught up with Eric Rosenthal, Vice President and Managing Director for the Americas with Rapyd for an extended Q&A via email.

Finovate: Rapyd just launched a new integrated payments solution in Mexico. How big of a deal is this for the company and its ability to serve the Mexican and Latin American markets? 

Eric Rosenthal: We have made significant investments in product sales and marketing strategy in Mexico and Latin America as these are critical markets to Rapyd’s growth. 

Rapyd has been quietly operating in Mexico since early 2018, building partnerships with local solution providers and developing relationships with businesses. With the launch of our integrated payments solution in Mexico, we formally announced our presence and the strong local partnerships we have developed which have enabled us to provide the full range of payment capabilities that merchants wish to offer to consumers based on how they want to pay. 

We intend to target local merchants that are looking into expanding their offerings in Mexico or that are looking into launching in other markets in Latin America or globally, as well as merchants outside of Mexico that have an interest in transacting with Mexico, either by disbursing or collecting funds. 

Mexico is a very strategic market for Rapyd. It is one of the five countries in the world where we have local entities and offer our full-stack capabilities – which means we offer all of our payment capabilities including collecting funds via bank transfers, cash and cards, disbursing funds across cash and bank transfers, and card issuing. It was one of the first countries we entered in 2018 – only two years since Rapyd’s founding – and the first country outside of the U.S. I personally opened as Managing Director for the Americas at Rapyd. 

Finovate: What can you tell us about this offering? What problem is it designed to solve and who is it designed to solve the problem for? 

Rosenthal: Whether we are talking about Mexico or any country in the world, the unfortunate reality of financial services has been and continues to be, that any merchant (marketplace, gig economy platforms, e-Commerce sites, etc.) trying to transact digitally will encounter payments infrastructure that is extremely fragmented. So if I am a Mexican merchant who is trying to solve the issue of collecting, disbursing, and issuing a card, I will need to integrate with three to five services providers – just in Mexico! 

Merchants that are expanding in Mexico or looking to enter new markets globally deal with this problem. It becomes exponentially harder to manage as they move into multiple markets. 

Rapyd is trying to eliminate the complexity that has come to characterize cross border finance. We look at how you simplify integration, and contracting processes and let companies dedicate their finite resources towards enhancing their core product instead of spending time and energy solving the challenges they face with payment and fintech integrations. 

Finovate: The company partnered with a number of major Mexican payment providers for this initiative. How important are these relationships for fintechs in the Mexican payments industry? 

Rosenthal: Our partners are what makes us unique – Rapyd is ultimately a network built on shared goals and collaboration. Through our partnerships we facilitate market entry that would otherwise be unattainable for many of these businesses to achieve on their own. Some of the areas we address include attending to merchants that are looking to scale their businesses as well as those looking to diversify their geographical coverage. In many cases, we have merchants that want to continue to work with their existing payment partners but in tandem begin to operate on the Rapyd platform as it offers a technology enhancement on top of what they are already doing, or simply because they are seeking a single point of reconciliation and settlement to minimize their operational overhead. 

So, for us, our partners are absolutely critical. What does it mean for the Mexican ecosystem? It ultimately means a better level of service for our end clients. We went out and found partners that are best in class, a handful of which we have announced publicly, and then others that we have not announced, but all of them are the best at what they do. So if you are a potential merchant looking for top of the line providers, you can trust that Rapyd has done the footwork, from the necessary technical integrations, ensured the network is compliant, performed the business due diligence, and also established attractive commercial terms with our partners. On behalf of the client, we minimize the effort and time of what would otherwise have been an enormous effort to set up what we set up on their behalf. Rapyd allows them to focus on their core business and not worry about the challenge of building and maintaining mission-critical payments infrastructure. 

Finovate: Many people in fintech here in the U.S. are aware of the fintech ecosystem in Europe and Asia, and even the Middle East, to a degree. We hear much less about fintech in Latin America. What are some important things for people to understand about that ecosystem?

Rosenthal: I personally have spent a lot of time living in Latin America. I lived in Peru for about 3 years and in Mexico for 3 years, so I have always felt a strong connection to the ecosystem. My perspective, shaped by having also lived in Southeast Asia, is that the Latin American ecosystem to a certain degree is a few years “behind” (in time, not in quality) and therefore the attention that has been given previously to APAC and Europe has to do with the fact that the ecosystem in Latin America is perceived to be a few years behind. 

The amount of time it takes for new initiatives to take hold or knowledge to transfer across the globe is significantly compressed. For example, most of what Rappi is doing is modeled after what Grab was doing in Southeast Asia three years prior. But yet you are now seeing that Rappi itself has significantly compressed its innovation cycle to launch new solutions and products. 

While the Latin American market may be less known for the time being globally, it is very well known by, and relevant to, those that have been operating in the region for some time. 

Finovate: What are some of the more unique aspects of fintech in Central and South America? 

Rosenthal: What is unique about Latin America is that it has a significant advantage over other markets, in my opinion when we talk about scalability and ease of adoption. While there are differences across cultures and of course dialect and language- don’t forget that Brazil has close to 250 million people speaking Portuguese, in the grand scheme of things Latin America is well suited for scale because of the commonality of language and ease of talent mobility- making the replicability of business models seamless. 

All that being said, we do continue to confront one challenge in Latin America, that is of course the sheer size of the market. Operating across 18 countries means 18 different regulatory regimes and few regional banking partners that are truly regional and that can offer the full set of capabilities.

But where there is fragmentation there is opportunity for Rapyd. Our ability to weave together multiple partners has positioned us as the single largest cash payment provider in the region. We have over 400,000 cash payment locations across Latin America, a large bank transfer network spanning each country we operate in, the ability to offer card acquiring in most of the countries we operate in, and the ability to hold the vast majority of Latin America currencies. That is something that even some of the world’s largest financial institutions are not able to provide. All of this together puts us in a prime position to serve clients that are looking for multi-country regional solutions. We believe that other companies such as Rapyd are playing a major role in removing these artificial technology barriers and borders between countries and are laying the foundation for more and more companies to scale with ease across the region and ultimately build more globally recognized fintechs. 

Photo by Gonzalo Facello from Pexels



HSBC leans into APIs to expand Cash Flow Forecasting tool




HSBC is expanding its Cash Flow Forecasting tool across its global footprint, and leveraging APIs to do so with minimal impact to existing systems. Cash Flow Forecasting is an API-enabled tool that gives businesses an accurate picture of their future finances to manage liquidity. It launched in London in June, and is slated to roll […]


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Canada Partners with Swiss, U.S. Fintechs; Neobank Raises Millions in Mexico




When it comes to taking advantage of the best that the world’s fintech has to offer, you won’t find financial services companies in Canada sleeping on the job. This week in the country’s payments space, Toronto, Ontario-based Versapay announced its acquisition of Solupay, a contactless payments company based in Ohio. We also learned that FinovateEurope alum unblu, which offers a digital conversational platform for FIs from its headquarters in Basel Switzerland, had teamed up with Calgary, Alberta-based digital technology solutions provider Celero.

By the end of the week, Canada’s largest credit education company, Borrowell, announced that it was partnering with multiple Finovate Best of Show winner MX. Borrowell, the first company in Canada to offer free credit scores via its partnership with Equifax, has launched a new bill tracking feature called Boost on its app. The company will use MX’s data cleansing technology to improve Boost’s analysis of user spending behavior to help users make better financial planning decisions.

“With MX, Borrowell is giving its customers greater clarity into how they can become more financially strong as a means to increasing credit strength,” MX Chief Customer Officer Nate Gardner said. “It is exactly this kind of innovation, partnership and money experience that MX loves to enable through our powerful data platform.”

Last week we featured an extended Q&A with Eric Rosenthal, Vice President and Managing Director for the Americas with Rapyd. If you’re interested in learning more about the fintech ecosystem in one of the most overlooked regions of the world, our conversation with Eric Rosenthal is a great place to start.

With that in mind, congratulations to Mexican challenger bank Klar, which raised $15 million in Series A funding in a round led by Prosus Ventures this week. Founded in 2019, Klar now has approximately $72 million in total debt and equity financing, and noted that the new capital will help the company build its engineering capabilities in its hubs in Berlin and Mexico.

“Klar is making credit accessible to all Mexicans, including those with no credit history,” Klar co-founder and Chief Financial Officer Daniel Autrique said. “We help people build credit by looking at how and where they spend their money, instead of being stuck with traditional credit scores that are backward looking and obsolete.” The company said that, since inception, it has issued more than 25,000 lines of credit among its 200,000 customers.

Here is our look at fintech around the world.

Sub-Saharan Africa

  • Stripe makes inroads in Africa with acquisition of Paystack.
  • A partnership between Standard Bank, Mastercard, and Google will help SMEs in Africa offer their services online as well as accept digital payments.
  • Trading Technologies teams up with Cape Town-based Applied Derivatives, which will distribute the TT platform from South Africa.

Central and Eastern Europe

  • PayRay, a factoring company based in Lithuania, receives banking license and begins banking operations in its home country.
  • Lithuanian online payments firm Interpaylink partners with iDenfy to provide remote user identification.
  • Advapay, a digital core banking platform provider based in Estonia, teams up with U.K.-based identity verification platform Sumsub.

Middle East and Northern Africa

  • Cairo, Egypt-based financial wellness platform NowPay raises $2.1 million in seed funding.
  • Central Bank of Bahrain launches the region’s first digital fintech lab, FinHub 973.
  • Commercial Bank of Dubai introduces cards and accounts for low-income consumers courtesy of partnership with Now Money.

Central and Southern Asia

  • Indian payments processor Razorpay secures $100 million in Series D funding, earning a valuation just over one billion.
  • Mastercard announces partnership with Indian regtech Signzy to bring the company’s video KYC technology to its banking customers.
  • Indian fintech Open partners with Equitas Small Finance Bank and Visa to offer business debit card.

Latin America and the Caribbean

  • Brazilian payment solutions provider Ebanx announces expansion of operations into five countries in Central and South America.
  • Venio, a mobile app that provides financing to the unbanked, goes live in Mexico.
  • Chile’s third largest bank, Banco de Crédito e Inversiones (BCI), partners with Temenos to launch new corporate bank in Peru.


  • The People’s Bank of China holds lottery to distribute millions in digital yuan valued at $1.5 million.
  • Vietnamese online payment portal AppotaPay scores payment intermediary license from State Bank of Vietnam.
  • PayMaya, a mobile payments platform based in the Philippines, launches new mobile payment device PayMaya One Lite, that enables acceptance of a range of digital payment types.

Photo by James Wheeler from Pexels


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Ditching the branch is a mistake, Forrester predicts




Banks that go fully digital as a result of COVID-19 could regret the move. “Banks shouldn’t abandon the branch but instead refocus it to drive customer and employee engagement,” according to Forrester’s “Predictions 2021: Banking” report. “They can reduce branch costs by being smarter about their footprint and technology as well as shifting to paperless […]


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