Seven financial trends that will drive fintechs in 2023

In the last five years, the fintech ecosystem grew 112% in Latin America, going from 1,166 platforms to 2,482, according to data from the Inter-American Development Bank (IDB).

“Fintechs are at the forefront of transactional services and in economies like Mexico their innovative spirit makes it possible for the end user to find a range of products and services that were traditionally restricted to only a sector of their population; They also expand the capacity of businesses to increase their number of potential buyers”, said Juan Huezo, director of Product Strategy at Rapyd, a company that facilitates the integration between consumers and businesses.

“In the region, new services will be incorporated through fintechs, which can vary between complete integration, where financial technology companies are the visible brand; or one that uses products developed by third parties, such as payment links, and pages of check out”, he added.

This fintech presented seven trends that will mark the landscape of online payment ecosystems for this year:

Cross-border trade

As a product of the global payment infrastructure, companies will be able to reach new customers and diversify their markets. This year, its proper articulation will focus on an integrated offer that allows local payments and the possibility of accepting different currencies.

“Cross-border financial technology will be one of the main trends for 2023, since regardless of their location and size, companies will seek sustainable growth in the face of a possible economic recession and local payment methods will be essential if they want to be competitive in this scenario” , said the manager of Rapyd in a report.

integrated finance

In this regard, the use of integrated finance in developing markets is transforming buyers and users. In addition, the digital transformation and the rise of e-commerce have caused a change in how companies offer and sell their products.

For retailers to be more competitive in a digital environment, cloud-based platforms must be easily tailored to reach shoppers differently and simply.

Buy now, pay later

The buy now and pay later model allows those who do not have a credit card to buy in monthly payments, which avoids bank commissions that the customer is not willing to pay.

It is one of the most popular means of payment in Latin America, mainly due to low financial inclusion and limited access to formal credit in the region. The adoption of this model will continue despite being in an environment of higher interest rates.