THIS WEEK’S FUNDING NEWS OVERVIEW
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REPORT
In the past decade, FinTech has shaken up the financial sector in Latin America. Digital payment systems have grown rapidly, digital banks have grown large, and alternative finance and insurtech have started to blossom.
Check out this FinTech report about The Rise and Impact of Fintech in Latin America
👀 NEWS HIGHLIGHT
US dollar weakens against Latin America currencies, expect the Argentine peso.
This is the performance of Latin American currencies against the dollar in the first quarter of the year.
🧐 ANALYSIS
The history of the e-wallet market is one of growth and change.
The past two decades have seen e-wallets begin to take a share of payments traditionally made directly via debit cards, credit cards, and cash or, in some markets, present an alternative financial solution that is more accessible than traditional banking.
The Covid-19 pandemic and the associated push towards digitalisation extended the reach of e-wallets, with users estimated at 2.6 billion in 2020 and projections of growth to over 4.4 billion by 2025.
💡INSIGHTS
Mexico 🇲🇽 now receives more remittances than China.
When covid-19 began to spread in early 2020, bosses in the United States booted millions of foreign-born workers from their jobs. That risked catastrophe for households across Latin America and the Caribbean, many of which cover essential expenses with money sent from relatives abroad.
After crashing briefly, the amount remitted to these countries soared. Last year remittances reached a whopping $142bn, 48% more than in 2019.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
☕️ REGIONAL HIGHLIGHTS
⭐️ Mexico is a country that has succeeded in alternative payment methods, despite CoDi’s slow rate of adoption.
⭐️ Kaszek Ventures raised $975 million across two funds.
⭐️ Bancolombia and Payválida announced a BNPL for Bancolombia customers.
⭐️ Cometa raised USD $5M to expand its presence in Latin America and invest in platform development.
BRAZIL
BTG Pactual introduced a dollar-backed stablecoin through its crypto platform Mynt to enable clients to "dollarize part of their equity in a simple, efficient and secure manner."
MEXICO
Klar closed the acquisition of a popular financial company sofipo, as part of an investment plan in the country that it announced last year. The acquisition will allow it to offer a broader range of financial services to its clients, specifically with the inclusion of savings products.
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