Hola amig@s fintech,

We hope you are having a great beginning of the year. We are thrilled to share that we have reached 70k subscribers! As usual, thank you all for the support and interest! We invite you to sign up for the TWIF Premium version, and to join our Slack community. 

❤️ Until next weekend. Até a próxima!

• Lorena

📊 Stat of the Week

Comparing hours worked to salaries across OECD countries reveals striking disparities, particularly in Latin American nations. Mexico and Colombia, for instance, report some of the highest average annual working hours—2,124 and 1,964 hours, respectively—ranking at the top within the OECD. However, despite these extensive working hours, both countries record among the lowest average annual salaries. This stark contrast highlights significant gaps in productivity and wage compensation when compared to nations like Luxembourg and the United States, which maintain higher wages despite fewer working hours. These findings underscore persistent challenges in labor efficiency and income inequality across the region. (Source).

📖  Read of the Week

The Deloitte report “Neobanks: the future of financial services in Mexico?” highlights the rapid growth of neobanks in the country, driven by their innovative approach to financial services. Neobanks have expanded access for underbanked populations, with adoption rates increasing by 20% year-over-year. This sector now represents a key driver of financial inclusion in the country, offering user-friendly digital platforms and tailored financial solutions. The report also emphasizes that nearly 30% of Mexican adults use neobanking services, underscoring their significant market penetration. With the ongoing evolution of financial technology and increasing smartphone adoption, neobanks are poised to play a critical role in reshaping Mexico's financial landscape in the coming years.

🦉 Post of the Week

🎙️ Podcast of the Week

💸 Venture Financing

💸 Equity & Debt

🇧🇷 Brazil Finance Group, the financial services platform offering credit solutions for SMBs, raised $28 million to accelerate its lending capabilities. The funding round was led by a consortium of private investors, with participation from institutional backers.

🇨🇴 Plurall, the Colombian digital microfinance platform, announced it has secured funding from BBVA Spark, backed by the Fondo Nacional de Garantías (FNG). Leveraging AI-driven credit evaluation, Plurall aims to combat informal lending practices while scaling its reach to underserved communities. 

💰 Venture funds 

🌎 BID Invest, the private sector arm of the Inter-American Development Bank (IDB), injected $50 million into a venture fund to support fintech companies across Latin America. The fund focuses on fostering innovation in financial services and enhancing financial inclusion for underbanked populations in the region. 

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☯️ Exits

🤝 M&A 

🇨🇴 Davivienda and Scotiabank, announced a strategic integration agreement across Colombia, Panama, and Costa Rica. This collaboration aims to optimize operational efficiency, improve customer service, and enhance digital banking capabilities in the region. 

 🚀 Product Launches & Partnerships

💻 Fintech 

🌎Satoshi Tango, the Argentinian crypto exchange, and Depay, the Argentinian QR payment infrastructure provider, announced a partnership to enable crypto payments at merchants in Argentina, Brazil, Colombia, and Peru. This partnership aims to bridge the gap between crypto and everyday transactions, allowing users to pay with crypto via interoperable QR codes. 

🇲🇽 Nu and Yastás, the Mexican payments network, subsidiary of Gentera, announced a partnership to enable cash deposits and withdrawals at over 5,000 locations across Mexico, including convenience stores and pharmacies. The move aims to expand Nu’s reach to underserved areas in more than 1,300 municipalities.

🇵🇪 Kuady, the Peru-based payments service processor, announced the launch of its physical prepaid Mastercard in Peru, expanding its payment options for users. The card offers secure and flexible in-store payments using Kuady wallet balances, aiming to enhance convenience for customers. 

🌎Bybit, the Dubai-based crypto exchange, announced the launch of its Physical Card in Brazil, enabling users to make virtual and in-store payments with crypto like USDT, BTC, and ETH. The card offers 2% cashback on purchases, no fees, and compatibility with Apple Pay and Google Pay. 

🌎Zinli, the Venezuela-based prepaid card provider, and Zoom, the Venezuela-based logistics and delivery company, announced a partnership to streamline international online shopping for Venezuelans. The collaboration integrates Zinli's prepaid cards with Zoom's international locker system, enabling seamless purchases and deliveries from global retailers. 

🇦🇷 Pomelo, the Argentinian card issuance and processing provider, announced the implementation of Mastercard’s "Meses Sin Intereses" (Interest-Free Installments) program. This innovation aims to simplify operations for issuers while improving the cardholder experience.

🇸🇻 Ditobanx, the El Salvador-based licensed digital asset service provider, and Tokeny, the EU-based tokenization technology provider, announced a partnership to establish a framework for regulated tokenized assets in El Salvador. Ditobanx plans to issue $300 million in tokenized assets in 2025, with 22 clients already in the pipeline. 

🇦🇷 Lemon, the Argentine digital wallet, announced that it now enables payments in Brazil via PIX directly from its app, using pesos or USDT. Users can save up to 15% on purchases with pesos by avoiding foreign transaction fees and up to 20% with USDT, aiming to offer a seamless and cost-effective payment experience in Brazil.

🏦 Financial Services & Banking 

🌎Spin by OXXO, the Mexican digital wallet, and Western Union, announced a partnership to enable international money transfers between the US and Mexico. Spin users can now receive up to $900 per transaction directly into their accounts, with no fees for receiving funds. 

🌎ZirconTech, the Uruguay-based blockchain and AI solutions provider, and AWS, announced a partnership to accelerate blockchain adoption and cloud-based innovations. ZirconTech aims to deliver scalable and secure blockchain applications globally, leveraging AWS's advanced infrastructure. 

🌎Nuvei, the Canadian fintech company, announced the expansion of its global partnership with Google to integrate Google Pay into its payment platform for businesses in LatAm. This integration aims to simplify the checkout process.

📜 Policy

🇺🇾 dLocal, the Uruguayan cross-border payments platform, announced it has obtained a UK payments license, marking a significant step in its global expansion. This move enables dLocal to better serve merchants in Europe while expanding its portfolio of payment solutions tailored for emerging markets.

🇧🇷 Finnet, the Brazilian credit and payment solutions startup, received authorization to operate as a payment initiation service provider through Open Finance and Pix. This accreditation positions Finnet to streamline transaction processes and enhance its offerings within Brazil’s evolving financial ecosystem.

🇧🇷 The Central Bank of Brazil approved new credit fintechs from BTG Pactual and Senior Sistemas, expanding their offerings in the financial ecosystem. The regulator also introduced restrictions for Pix, Brazil's instant payment system, requiring all participating institutions to be officially authorized starting January 2025, enhancing security and operational oversight.

🇨🇱 In Chile, a critical countdown begins for fintechs to meet compliance requirements to continue operating under the country's evolving financial regulations. The shift marks a push towards greater transparency and operational standards.

🇲🇽 The Federal Economic Competition Commission (COFECE), which is now being dissolved, issued recommendations for fintechs subject to secondary legislation, aiming to foster competition and innovation while maintaining market fairness and regulatory clarity.

📰 Other News 

🇧🇷 Marilyn Hahn was named Chief Business and Product Officer at Lerian.

🇲🇽 Sofia Belmar was named Chief Executive Officer at Prudential Seguros México.

🇧🇷 Brazil’s Federal Revenue Agency debunked rumors about a potential tax on Pix transactions, reaffirming the government’s commitment to keeping the popular instant payment system free of such charges.

🇲🇽 In Mexico, contactless payments represent a growing trend in e-commerce, with increasing adoption by consumers seeking convenience and speed in their purchases.

🇲🇽 TikTok Shop launched in Mexico, enabling users to shop directly from the app, entering the competitive e-commerce market alongside giants like Amazon and Mercado Libre.

🇨🇴 WhatsApp is becoming a pivotal sales channel for businesses in Colombia, allowing enterprises to directly engage with customers and drive sales through the popular messaging app.

🇲🇽 Jüsto, the Mexican e-grocery platform, secured $20 million in venture debt by HSBC Mexico, this funding will serve to enhance its technological infrastructure and expand its service offerings across LatAm. 

🇨🇱 Buk, the Chilean HR platform specializing in digital solutions for employee management, raised $50 million in a funding round that valued the company at $850 million. 

🌎Bridge for Billions, the Spanish global entrepreneurship program leader, announced a partnership with the Western Union Foundation to launch an incubation initiative for migrant and refugee entrepreneurs in Colombia and Mexico. The free program aims to support 150 businesses, addressing barriers like unfamiliar business systems and limited financial access, while fostering job creation and $1.56M in annual revenues within two years.

📚 Deeper Reads

The Great Crypto CrashMoney doesn´t guarantee happiness, but freedom does

The path to becoming a neobank in Mexico: Lessons from the Revolut case (ES)

When does a merger and acquisition generate economic value for the parties? (ES)

Fintech remains attractive for venture capital in 2024

Why you're chronically overcommitted

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Made in LatAm with ❤️ by Elena, Daniela, and Lorena

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