Brazilian Fintech Ecosystem Embraces New Growth Opportunities

As Brazil’s banking and financial systems undergo modernization, the fintech ecosystem is pursuing new opportunities. Initiatives such as instant payments and digital currency are opening up alternative avenues for growth, especially for companies that support other activities in these areas.

The B2B fintech segment in Latin America has seen significant growth, with 1,284 startups representing 47.3 percent of the region’s fintech landscape. Brazil represents 66 percent of this total, according to data from innovation network Distrito.

Investment trends in business-focused fintechs in Latin America have shown a substantial increase since 2018, with volume peaking in 2021, with over USD 2 billion in 174 deals. Although there was a decline in investment in 2023 (with 71 deals amounting to USD 430 million), by May 2024, investment had already reached USD 400 million, indicating the potential to surpass last year’s figures.

“The local fintech landscape has evolved from a focus on consumer-centric models to a greater emphasis on B2B solutions, with companies helping traditional financial institutions and digitally native players modernize their infrastructure and incorporate new capabilities,” said Bruno Diniz, CEO of Spiralem Consulting and author of the Brazilian financial services ecosystem.

B2B fintechs are central to the Central Bank’s modernization agenda, creating products based on new approaches. Notable initiatives include the PIX instant payment system launched in 2020. PIX has reached 114 million users and nearly 42 billion transactions in 2023, up 75 percent from the previous year, according to Central Bank data.

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