Brazilian fintechs gain ground in Latin America. Sisters Daniela and Juliana Binatti left their jobs to start a fintech. Visa bought their company Pismo for US$1 billion.
Pismo started in 2016. It’s the latest success in Brazilian fintech. This sector is big in Brazil and Latin America.
Daniela began her journey young. At 16, she handed out resumes to banks. Many of these banks are now her clients.
Pismo has 450 staff and five global offices. Its sale to Visa increases Brazil’s unicorn startups to 21.
Daniela faced global biases. She said it was tough, but they were confident. Pismo’s tools help Visa serve clients globally.
Other Brazilian FinTechs also show promise. Nubank is significant and listed on Wall Street. Another firm, Neon, got US$300 million from Spain’s BBVA.
Extra Context
Brazil leads in FinTech in Latin America, says Diego Herrera of the IDB. The country attracted 40% of the region’s venture capital in 2022.
Few banks dominate the market in Brazil. This creates many problems that startups aim to solve, like high costs.
Brazil keeps pulling in global investment. It hosts 869 FinTech firms, ranking eighth in the world.
Most of these firms focus on credit and payments. They offer options traditional banks ignore, says Mariana Bonora of ABFintechs.
Cora, a digital bank, targets small businesses. These make up 90% of all businesses in Brazil, says Cora co-founder Igor Senra.
Cora gained US$116 million in funds during the pandemic. It now has 400 staff and one million clients.
Brazil plans to boost its FinTech scene with ‘open finance.’ This will help with data sharing among financial institutions.
The upcoming regulation of digital currencies will also likely fuel more innovation.
With information from AFP