Japan’s multi-conglomerate company Softbank is pushing through a new investment in the Mexican Fintech, allotting about $20 million to startup company Clip.
According to Contxto, Clip will be another multi-million dollar investment from the Japanese company, as part of its $5 billion technology fund in the region. The recent news about Rappi’s $1B investment already made news as one of Latin America’s biggest investments.
Aside from Softbank, the New York investment firm General Atlantic is also investing in the company.
Fintech in Latin America
Several years ago, Fintech sector is struggling in Latin America mainly because of the huge percentage of the unbanked population. People don’t have access to technology and innovation, hence, cash is the only mode of transactions.
Even until now, there are a lot of people who still don’t have a formal bank account and credit cards. Although this scenario will still continue, with newer technology reaching out to different areas in the region, the fintech sector is expected to flourish.
Now that the sector has collective support coming from different big companies in the world, startup firms can take advantage of this and promote growth.
In fact, according to Brink News, in 2021, Fintech market will exceed $150 billion in Latin America. By utilizing technology and solving financial challenges, the region has a lot of potential for being one of the key players in the global economy.
Coru Fintech CEO Fernando Gonzalez said that the growth of Fintech in the region will be more dramatic and faster, now that funds are available.
This is high time for Latin America to keep up with the financial services trends as well as create new modes of payment that can be used by merchants and small businesses. With this, people will be educated that there are other ways to pay for transactions aside from cash.