The Future of Fintech in Latin America
The Future of Fintech in Latin America: Trends to Watch in 2023
The fintech industry in Latin America is booming, and it's only going to keep growing in 2023. According to the Inter-American Development Bank (IDB), the region has seen a 112% growth in fintech platforms, going from 1,166 to 2,482 in just a few years. With Mexico in second place, followed closely by Colombia, almost a quarter of fintechs worldwide are based in Latin America. As we enter 2023, it's clear that the fintech revolution is here to stay.
Juan Huezo, Senior Product Strategy Director at Rapyd, an Israeli decacorn, believes that fintechs are leading the way in transactional services. In economies like Mexico, where innovative spirits are high, end-users now have access to a wide variety of products and services that were previously restricted to certain sectors of the population.
Cross-border commerce, integrated finance, virtual accounts, fintech as a service, and super apps are some of the fintech services that will continue to grow this year.
Cross-Border Commerce
With a global payment infrastructure, companies can reach new customers and diversify their markets. In 2023, it's predicted that there will be a focus on integrated offers that enable local payments and the ability to accept different currencies based on the buyer's origin.
Integrated Finance
As digital transformation continues to change the way companies offer and sell products, cloud-based platforms that can easily adapt to a brand's unique needs and attract customers more easily and effectively will become increasingly important.
Virtual Accounts
The need to reduce costs in cross-border payments will drive the acceleration of virtual account use in 2023.
Fintech as a Service
B2B markets that implement payment solutions in their business models are crucial to empower merchants, especially as commercial transactions become more complex.
Virtual Cards
The popularity of virtual cards will continue to rise in 2023 as fintechs continue to reinvent the way companies manage their expenses and reach populations that have traditionally been underserved by financial markets.
Super Apps
As customers seek to consolidate and simplify their digital services, super apps will continue to grow around the world.
Huezo believes that cross-border commerce will be one of the most important trends in 2023, as companies, regardless of their location and size, look for stable growth in the midst of a possible recession. Local payment means will be key to staying competitive.
The fintech industry is rapidly evolving and expanding, and it's clear that the trends predicted for 2023 will have a significant impact on the industry in Latin America and beyond. Matwal Solutions provides legal services that comply with the strictest regulations in the jurisdictions where they operate. Contact us to learn more about our services and rates.