In 2023, LatAm’s fintech investments plummeted to under $2 billion, yet a rebound is expected in 2024 with growth beyond $2 billion. Inspired by Pix in Brazil, Latin America is launching Bre-B in Colombia to enhance real-time payments, reduce costs, and promote financial inclusion. Dock partners with Credibanco to implement Bre-B, reflecting optimism for technological advancement, particularly in underserved markets.
Fintech in Latin America (LatAm) faced a significant decline in investments in 2023, dropping to under $2 billion from $6 billion in 2021. Despite these tough conditions, fintech companies continued to emerge with success stories. Investment in the sector rebounded in 2024, exceeding $2 billion, fostering optimism for the industry’s recovery by 2025. Em Conversa aims to explore pathways for the region’s fintech revival.
The payments landscape in Latin America has been greatly influenced by the success of Pix, Brazil’s instant payments system, which recorded over six billion transactions monthly by Q4 2024. This success has inspired other countries in the region, particularly Colombia, which is implementing Bre-B. This new platform intends to lower transaction costs, eliminate delays, and improve cash flow and user experience, while utilizing keys and QR codes to promote inclusivity for unbanked individuals and businesses.
Dock, a Brazilian digital payments provider and contributor to Pix, collaborates with Credibanco, a Colombian electronic payments company, to facilitate the rollout of Bre-B. Dock’s CEO, Antonio Soares, emphasizes the significance of real-time payment systems like Bre-B in enhancing financial inclusivity, especially in cash-dependent economies. Current trends suggest that the implementation of such systems can streamline transactions by eliminating intermediaries.
Countries throughout LatAm are introducing real-time payments due to the opportunity such systems present for financial inclusivity. In Colombia, the real-time payments solution, Bre-B, is designed to promote direct transactions, reducing barriers for users. The readiness of the Colombian populace to adopt this technology mirrors Brazil’s experience with Pix, as necessary regulatory frameworks are already in place to support such innovations.
Dock aims to leverage its expertise from Brazil to assist Credibanco in launching Bre-B successfully. The globally deployed Dock One platform, which includes multiple financial services, will be customized to meet Colombia’s regulatory requirements, ensuring a smooth integration of new technologies into established financial systems. Collaboration between regulators in Brazil and Colombia aids competitive growth and financial inclusion in both markets.
Though regions like Colombia may initially lag behind Brazil’s fintech ecosystem, technology can bridge the gap. Scaling technology solutions for smaller markets is often less complex. Plus, as card usage remains low in certain LatAm countries, the transition to real-time payments is more promising, provided consumers understand the benefits. Improving infrastructure, like internet access, is crucial for widespread adoption.
Embedded finance, where financial services are integrated into other sectors, is rapidly enhancing accessibility in LatAm. Companies engaging directly with users, such as transport services, can provide tailored financial solutions that traditional banks may overlook. This trend reflects a broader shift towards personalized financial offerings that connect more closely with consumer needs.
Significant opportunities for innovation still exist in the B2B payments market, which remains focused on digitizing and modernizing offerings. While B2C and P2P transactions have evolved, B2B still commands a large share of transaction volume. The region also has untapped potential in cross-border payments, although prioritizing financial inclusion remains critical before expanding in that direction.
The evolution of real-time payments like Bre-B in Colombia, inspired by successful models such as Brazil’s Pix, highlights the importance of technology in driving financial inclusion in LatAm. As fintechs adapt and innovate, collaboration among regional stakeholders and improvements in infrastructure will be vital for achieving widespread accessibility and modernization of financial services. Continued focus on localized solutions and tailored financial offerings will propel the region’s fintech landscape forward.
Original Source: thefintechtimes.com
