{"id":4357,"date":"2018-10-17T22:14:12","date_gmt":"2018-10-17T22:14:12","guid":{"rendered":"https:\/\/www.finnovista.com\/will-china-drive-growth-in-latam-fintech\/"},"modified":"2020-04-20T02:31:49","modified_gmt":"2020-04-20T02:31:49","slug":"will-china-drive-growth-in-latam-fintech","status":"publish","type":"post","link":"https:\/\/www.finnosummit.com\/en\/will-china-drive-growth-in-latam-fintech\/","title":{"rendered":"Will China Drive Growth in LatAm Fintech?"},"content":{"rendered":"
News broke only a few days ago, <\/span>Nubank is now worth $4 billion after Tencent\u2019s $180 million investment<\/a><\/strong>. A sentence that can be ripped apart and dissected, each of the eleven words of equal importance, whether it\u2019s Nubank\u2019s continued classification as Latin America\u2019s first Fintech unicorn, the neo-bank opportunity in the region or the (now public) entry of Tencent, the Chinese internet giant into the Fintech opportunity in Brazil and Latin America.<\/span><\/p>\n And while the news is hot off the press, it\u2019s something I\u2019ve been thinking about a lot over the past ten months. I first thought about it months ago when <\/span>99Taxis was acquired by Didi<\/a><\/strong>.<\/strong> In my eyes, it marked a before and after for Asian involvement in the LatAm startup scene; if they are already eyeing opportunities in other verticals, Fintech would surely be next considering the size of the opportunity in Latin America and the maturity of the Chinese Fintech market.<\/span><\/p>\n Miguel Herrera from Quona summed it up best at <\/span>FINNOSUMMIT<\/a><\/strong> Mexico in September when talking about Fintech Trends from China:<\/span><\/p>\n For those wanting to learn a little more about the level of maturity and sophistication of the Chinese Fintech market, <\/span>here<\/a><\/strong> is a good read from Brett King. Some excerpts that size the market opportunity and development stage of Fintech in China are as follows: <\/span><\/p>\n \u201cThis year Ant Financial and Tencent will preside over more than $22 Trillion in mobile payments \u2013 representing 98% of the lucrative Chinese mobile payments market. To put that in perspective, that\u2019s more than the entire world\u2019s debit card and credit payments volume this year \u2013Visa managed just <\/span>$2 Trillion in Q2 of 2018<\/a><\/strong>. China\u2019s mobile payments market is more than 4x the size of Visa\u2019s global transaction market as of today.\u201d<\/span><\/p>\n \u201cThe biggest deposit product in the world [Yu\u2019e Bao, part of Ant Financial] is completely digital and 2x the size of the nearest major in the US. The largest Fintech bank in China has more customers than JP Morgan Chase. The mobile payments business in China is larger than the world’s entire plastic card market.\u201d<\/span><\/p>\n With the Tencent investment in Nubank, one of Miguel\u2019s many predictions at FINNOSUMMIT Mexico has already become reality (only a month after Miguel\u2019s keynote) and we\u2019re seeing the Chinese players taking note of Latin America\u2019s growing Fintech market and capitalizing on opportunities to help the region follow a similar path to China\u2019s. Back in March, Chinese payments giant <\/span>AliPay partnered with Openpay<\/a><\/strong>, but I think with Tencent\u2019s investment in Nubank through the headlines it has attracted, that we can expect to see a ramped up presence of Chinese Fintech players and capital in Latin America leading to more partnerships, investments and exits.<\/span><\/p>\n<\/p>\n<\/div>\n
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About Andr\u00e9s Fontao | Managing Partner, Finnovista<\/a><\/h4>\n
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