The Latin American fintech sector faced significant investment declines in 2023 but is projected to rebound in 2024. With the introduction of Bre-B in Colombia, inspired by Pix, the focus is on enhancing financial inclusion. Dock partners with Credibanco to facilitate the implementation, leveraging their expertise. The future of real-time payments in the region appears promising, emphasizing technology’s role in financial services.
According to Statista, the fintech sector in Latin America (LatAm) encountered significant challenges in 2023, with investments plummeting to under $2 billion, a stark contrast to the $6 billion attracted in 2021. Despite these adversities, fintech companies have continued to emerge and find success within the region. Projections indicate a rebound in investment levels in 2024, surpassing $2 billion once again, leading to a hopeful outlook for fintech in 2025. Em Conversa aims to delve into the strategies by which LatAm can rejuvenate and thrive in the future.
The payments landscape in Latin America has been heavily influenced by the triumph of Pix. Recent reports from Matera indicate that Pix transactions surpassed six billion monthly in the fourth quarter of 2024. Subsequently, other countries are aspiring to replicate this success, with Colombia now introducing Bre-B. This initiative is designed to lower transaction costs, eliminate waiting times, enhance cash flow, and elevate the payment experience overall, particularly for the unbanked population.
Bre-B utilizes innovative keys and QR codes, making digital payments accessible while adhering to top security standards. The initial launch is scheduled for September 2025, and established firms are collaborating to ensure the success of this real-time payment platform. An essential player in this preparation phase is Dock, a Brazilian digital payments provider participating in Pix. Dock’s CEO, Antonio Soares, discussed the evolution of real-time payments in Colombia and the broader Latin American context.
Regarding Bre-B’s strategy to emulate the success of Pix, Soares elaborated, “Every country is implementing or thinking of implementing real-time payments… Technology is helping to remove the friction and number of players needed to complete a transaction.” He emphasized the significant opportunity for financial inclusion in Latin America, particularly in regions reliant on cash.
Soares highlighted how Brazil’s launch of Pix coincided with an era of regulatory changes, facilitating easier access for the population. “This is what we saw in Brazil… it was ready to use it because regulatory changes had already made it accessible.” In contrast, other LatAm nations, while facing different realities, possess fintech ecosystems that allow them to rapidly adapt to real-time payments without the obstacles seen previously in Brazil.
For the implementation of Bre-B, Dock and Credibanco are collaborating closely. Dock’s international expansion began three years ago, leading to the creation of Dock One, a global platform providing card services, real-time payments, and core banking functionalities. Soares noted, “Dock One is filled with expertise from our work in Brazil, and using this expertise… is what will allow us to help Credibanco accelerate its implementation in Colombia and beyond.”
While recognizing the regulatory differences between Brazil and Colombia, Soares articulated the collaboration between the Central Banks of both nations to foster competition and inclusion. He acknowledged architectural variations but expressed optimism for shared strategic successes. “Eventually, it is likely the Central Bank of Brazil will share its strategy to centralised success.”
Concerning the potential for Colombia and other regions to catch up to Brazil, Soares stated, “Technology will definitely help firms catch up.” He observed that regions with lower card penetration have opportunities to advance technology adoption more rapidly. The current infrastructure gaps between Brazil and its neighbors still pose challenges, but with consumer demand for real-time payment benefits, adoption is likely to grow.
The discussion on factors driving financial inclusion in Latin America also includes embedded finance. Soares provided examples of companies using this technology to offer tailored services, such as transportation firms servicing truck drivers. These companies, by knowing their drivers better than banks, can provide personalized financial services.
In terms of payment trends, Soares indicated a significant opportunity for innovation in the B2B sector, which has historically lagged compared to B2C and P2P markets. He also pointed to the need for digitization in the traditional cross-border payment space, emphasizing the importance of prioritizing financial inclusion within Latin America before expanding international focuses.
In conclusion, the fintech sector in Latin America is progressing despite recent challenges. Initiatives like Bre-B, inspired by the success of Pix, are poised to foster financial inclusion and streamline payments in Colombia. Collaborations among key players such as Dock and Credibanco aim to ensure the success of real-time payments. Technology will continue to play a crucial role in enhancing the fintech landscape, driving innovation and accessibility in the region.
Original Source: thefintechtimes.com
