Hola amig@s fintech,

Get ready for Mexico Tech Week. This year, TWIF is hosting two events: The Fintech Feast on Monday, Oct 21, co-organized with Pygma; and a Founders & VC mixer on Tuesday, Oct 22, supported by Ensemblex, Timbi, and BGBG. 

Go ahead and RSVP now here! 

Please find below this week’s front page of LatAm fintech news. If you’re reading this on the web, we’d appreciate your support by sharing and subscribing.  

💛 Until next weekend. Até a próxima!

• Lorena

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📊 Stat of the Week

Mexico's mining sector contributes $50 billion to the economy of the country each quarter, representing over 2% of the GDP, with silver remaining a major export. However, the services industry is rapidly growing, contributing $40 billion per quarter, nearly rivaling mining. The service sector's value doubled between 2020 and 2024, driven by industries like tech support and hospitality. Employment and wages in tech have risen 20% since 2018, reflecting a shift toward higher-value jobs and economic transformation (Source).

📖  Read of the Week

“The Apple in Payments” by BCG, discusses Apple's evolving payment strategy, focusing on three key announcements in 2024. These include the discontinuation of Apple Pay Later, the introduction of installment payments in Apple Wallet, and the opening of NFC and secure element APIs to developers in several countries. These moves are expected to impact markets with high iPhone penetration and card payments, such as the U.S. and U.K., while benefiting BNPL providers and third-party wallets. 

🦉 Post of the Week

 🎙️ Podcast of the Week

💰 Venture funds 

🇧🇷 Kapitale, the Brazilian credit solutions company, announced the Kapi Credit Rights Investment Fund, a FIDC, with initial capital of $9 million. The fund will be directed to SMEs.

☯️ Exits

🤝 M&A - Fintech

🇸🇻 Fundación Grupo Social, the Salvadoran nonprofit organization, announced the acquisition of the 51% of Bank W of Colombia, aiming to expand its social and financial impact through sustainable development projects.  

🚀 Product Launches & Partnerships

💻 Fintech

🇨🇴 Cobre, the Colombian financial infrastructure provider, announced the expansion of its operations to Mexico. The company aims to bring real-time financial movements, Cobre Connect, and instant international payments to Mexican companies. 

🇧🇷 Ripple, the blockchain-powered payment solutions provider, announced the expansion of its LatAm footprint with the launch of Ripple Payments in Brazil, initially partnering with Mercado Bitcoin. This move aims to enable faster cross-border transactions, leveraging Ripple’s XRP Ledger for on-demand liquidity.

🇨🇴 Tpaga, the Colombian startup, and Balam, the US-based payment platform, announced a partnership to launch a remittance solution via WhatsApp. This service seeks to lower costs and enable instant transfers. 

🇨🇱 Rocketbot, the Chilean RPA (robotic process automation) platform, announced it has opened a new office in São Paulo, Brazil, as part of its expansion strategy. The company is now focusing on generative AI to enhance its product offerings and aims to grow its client base in the country.

📜 Policy

🇧🇷 Mercado Pago received approval from the Central Bank of Brazil to operate its own securities distributor, expanding its financial service capabilities in the region.

🇦🇷 Binance officially registered as a cryptocurrency service provider in Argentina, aiming to enhance compliance and expand its services in the country.

🇲🇽 Belvo and Fintigo, received approval from Mexico’s CNBV to operate under the Fintech Law, allowing them to offer regulated financial services in the country.

🇧🇷 The Brazilian Central Bank’s officials announced that Drex’s objective is to become the country’s own financial system and that all services and companies will migrate to this new platform to integrate with Open Finance and Pix.

📰 Other News 

🌎 Carlos Zavala was named Group Country Manager at Visa for Andean Region.

🌎 Matias Dajcz was named Chief Revenue Officer Global at Ripio.

🇲🇽 Javier Smith was named Managing Director at Enviame.

🇲🇽 Omar Sahid Romero Bejarano was named Deputy General Manager at Banco Compartamos.

🇲🇽 Yerom Castro Fritz was named Executive Director of Operations at Banco Compartamos.

🇲🇽 Raúl Tenorio Núñez was named Director at Yastas, subsidiary of Banco Compartamos.

🌎 Mastercard announced it will phase out magnetic stripe cards by 2033, replacing them with biometric and digital cards that offer enhanced security and efficiency.

🇲🇽 Spin by OXXO, the digital wallet, will gain direct SPEI (Mexican interbanking system) connectivity, improving real-time transfers.

🇦🇷 The National Bank of Argentina launched a virtual assistance program for retirees, offering support through a digital platform to facilitate financial services.

🇺🇾 dLocal, the Uruguayan paytech, accounts for 20% of the country’s GDP, demonstrating its significant role in the nation's economy by enabling cross-border payment solutions.

🌎 Squirrel Media, the Spanish media conglomerate, announced the acquisition of the 10.5% of GoTrendier, a Colombian fashion resale startup, as part of its diversification strategy to enter the second-hand fashion market.

📚 Deeper Reads

BlackRock Calls Bitcoin 'Global Monetary Alternative'

Stablecoins gain ground in remittances (ES)

Transaction innovation: how technology is changing money transfers (ES)

The double-edged sword of technology in productivity and finance (ES)

To make finance open, you have to open your mind (ES)

A Super App in Latin America? Interview with Moisés Chaves (ES)

📣 LatAm startup alum who have been impacted by layoffs and recruiters looking for top talent, check out the Startups Alumni and Layoffs Brasil databases.  

If you’re looking to hire from a group of 10,000+ smart, motivated fintech professionals, come pick up a Collective Pass and post a job here.  If you’re looking for your next adventure at one of the best fintech companies, check out the open roles here!

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

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