The Fintech Sector in Latin America Doubled in Three Years

Latin America’s fintech ecosystem experienced rapid growth: it doubled in size in the last three years. This growth was largely driven by the covid-19 pandemic, which spurred the digitization of numerous activities and accelerated the adoption and consolidation of digital finance.

According to a report published by the Inter-American Development Bank (IDB), IDB Invest, and Finnovista, the number of fintech companies in the region grew 112% between 2018 and 2021, with an annual increase of approximately 37%. Regarding Argentina, 279 fintech companies are already operating, 11% of the total in the region.

Likewise, investments exceeded $1.6 billion, and 36% of the fintech startups surveyed present solutions that cover segments of the population totally or partially excluded from the formal financial system, thus becoming a more open and democratic modality.

“Undoubtedly, the use of this modality broke with the traditional paradigm and started a stage led by financial inclusion and the opening to new markets. Moreover, its adoption offers numerous advantages to users, in addition to providing security and convenience,” said María Luz Ameijeira, leader of Pago Nube at Tiendanube.

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Along with this trend, the e-commerce payment model has evolved exponentially

There are currently multiple online transaction processing systems that allow the integration of a store with multiple payment methods, through the so-called gateways or payment platforms.

“This trend is based on the fact that consumers are looking for convenient and satisfactory shopping experiences. According to the latest report of the Central Bank, the cell phone is the platform most chosen by users of financial services to make money transfers in 60%”, expressed in the company.

“Currently, consumers are increasingly choosing to pay through digital means. According to data from our own online payment solution, Pago Nube, we see that orders placed in January had an average ticket of $12,500, of which 50% were paid in a single payment. Followed by three (31%), six (15%), and two (4%) installments,” said Ameijeira.

“Pago Nube was developed with the knowledge of the challenges faced by online businesses in Argentina and is configured as an ally for brands. It is an accessible platform, with no membership fees or fixed monthly costs. In addition, there is a zero cost per transaction in Tiendanube, which is a bonus with the use of Pago Nube as a payment method. The tool allows Argentine SMEs and entrepreneurs to manage their businesses in a secure, agile, and more profitable way while guaranteeing a differentiated financial management experience for the business,” concluded Almeijeira.

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(Featured image by Austin Distel via Unsplash)

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First published in COMERCIO Y JUSTICIA, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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