Fintech Predictions for 2025: Innovation, AI, and Financial Inclusion in LatAm
Exploring the future of fintech in LatAm: Trends, insights, and strategies for founders, product leaders, and investors.
Highlight: Latitud's LatAm Tech Report 2024
Hi Fintech thought leaders, 👋🏼
As we kick off 2025, Latin America’s fintech landscape continues to evolve at an unprecedented pace. From the widespread adoption of real-time payment systems to the rise of superapps battling for wallet share, the region is a hotbed for innovation, competition, and opportunity.
In this edition, I reflect on how my 2024 predictions stacked up and explore the Top 10 Fintech Trends for 2025 shaping the industry. From embedded finance transforming businesses to generative AI fueling hyper-personalized services, this year promises to redefine financial services across LatAm.
Plus, don’t miss insights on the latest equity rounds, strategic acquisitions, and product launches driving financial inclusion and growth across the region.
🚀 Ready to dive into the future of fintech? Let’s explore the trends and stories that will shape 2025 and beyond.
Top 10 Fintech Trends for 2025
2024 Predictions ON-SPOT
Reflecting on my 2024 payment trends predictions for Latin America, it's gratifying to see how accurately they mirrored the region's fintech evolution.
1. Real-Time Payment Systems Flourished
Governments across Latin America actively pursued real-time payment technologies, leading to widespread adoption.
Brazil's PIX system, for instance, achieved a remarkable adoption rate of 95%, becoming a benchmark for instant payments in the region.
Colombia's Bre-B System
Expected to be operational by the second half of 2025, providing 24/7 real-time payment capabilities and interoperability
Mexico's SPEI System gaining traction
Peru's YAPE and PLIN interoperability effort, and working further towards a centralized, Real-time instant payment mechanism
2. Consumers Embraced Payments Technological Advancements
The shift towards contactless payments and enhanced security authentication was evident. The pandemic accelerated the use of digital in-store payments, with many consumers preferring contactless options.
3. Generative AI's Impact on New Solutions
The anticipated influence of Generative AI materialized, driving the development of innovative financial products and personalized services, enhancing user experiences across the board.
4. Regulatory Support for Efficient Payment Systems
Regulators demonstrated increased support for fair, low-cost, and efficient payment systems, fostering the growth of new digital industries, including online betting, thereby promoting a more inclusive digital economy.
Fintech 2025 Trends Forecast
The fintech landscape in 2025 promises to be transformative, with groundbreaking innovations and shifts that are redefining how we interact with financial services. From embedded finance becoming a standard across industries to B2B cross-border payments poised for disruption, this year will be marked by a heightened focus on personalization, regulatory evolution, and ecosystem integration.
Traditional players, fintech startups, and even lifestyle platforms are battling for wallet share, creating frictionless, value-driven experiences for consumers. Meanwhile, advancements in AI, DeFi, and Open Finance are paving the way for a more inclusive, secure, and efficient financial ecosystem.
Here are the Top 10 Fintech Trends for 2025 that will shape Latin America and beyond, complete with actionable examples that showcase the industry’s evolution:
Embedded Finance Goes Mainstream
Real-Time Payments Everywhere
Generative AI Fuels Fintech Innovation
BNPL Matures with Regulation
Open Finance Goes Beyond Payments
Cybersecurity as a Competitive Advantage
DeFi Gets Institutional
Cross-Border Payments Disrupt B2B
Artificial Intelligence Enhances Fraud Detection
The Rise of Financial SuperApps
1. Embedded Finance Goes Mainstream
What’s Changing: Embedded finance is moving from innovation to standard practice in industries like retail, travel, and e-commerce, integrating services like instant credit, payments, and insurance.
Example: Mercado Libre is expanding its embedded lending program for merchants, offering seamless financing at checkout.
2. Real-Time Payments Everywhere
What’s Changing: Instant payment systems like Brazil’s PIX are expanding their use cases, including installment payments and regional interoperability for cross-border transactions.
Example: Peru’s YAPE enabled seamless wallet-to-bank transactions, boosting inclusion in underserved areas. PIX 2.0 is set to expand functionality, including direct-to-merchant installment capabilities.
3. Generative AI Fuels Fintech Innovation
What’s Changing: In 2025, generative AI will move beyond chatbots, creating self-driving financial services experiences that automate everything from personalized credit to regulatory compliance.
Example: Nubank’s acquisition of Hyperplane positions the company to deliver hyper-personalized services, using AI to suggest loan repayment strategies, investment products, or savings plans in real-time.
4. BNPL Matures with Regulation
What’s Changing: As regulators step in, Buy Now, Pay Later services are adapting by focusing on transparency, credit risk management, and compliance, making them more sustainable for consumers and providers.
Example: Argentina’s Naranja X launched a BNPL product with capped interest rates to align with emerging regulations while gaining customer trust.
5. Open Finance Goes Beyond Payments
What’s Changing: Open Finance is evolving to include insurance, investments, and mortgages, broadening the scope of APIs and enabling a unified financial ecosystem.
Example: Mexico's Open Finance framework now allows startups to aggregate savings accounts and insurance offerings, letting consumers manage multiple products through a single app.
6. Cybersecurity as a Competitive Advantage
What’s Changing: With digital transactions skyrocketing, fintechs must invest heavily in fraud detection, biometric authentication, and real-time risk assessments to build trust.
Example: Brazil’s Koin invested R$30M in cutting-edge fraud detection systems to ensure secure transactions for merchants and consumers.
7. DeFi Gets Institutional
What’s Changing: Decentralized finance is maturing, with fintechs blending traditional models with blockchain solutions to provide secure and regulated options.
Example: El Salvador’s Ditobanx launched a $300M tokenized bond offering, targeting institutional buyers while complying with financial regulations.
8. Cross-Border Payments Disrupt B2B
What’s Changing: While consumer remittances have been a fintech mainstay, B2B cross-border payments are now poised for disruption. Startups are streamlining these transactions to reduce costs and settlement times.
Example: Brazil’s Vixtra and Mexico’s Mundi are leading the charge in B2B cross-border payments, simplifying exports and trade financing for SMBs in LatAm.
Artificial Intelligence Enhances Fraud Detection
What’s Changing: AI is playing a crucial role in personalizing payment experiences and enhancing fraud detection capabilities.
Example: Deep learning algorithms analyzing transaction patterns to identify potential risks in real time.
10. The Rise of Financial SuperApps - A battle for share of wallet
What’s Changing: Fintechs are moving beyond single services to create comprehensive ecosystems, integrating payments, travel, and loyalty programs into all-in-one platforms. Lifestyle and retailers platforms are moving into financial products.
Financial services players are expanding into lifestyle offerings (e.g., travel, protection, e-commerce).
Lifestyle platforms are embedding financial products (e.g., payments, credit, BNPL) to deepen engagement and capture daily spending flows
The competition for day-to-day wallet share is heating up, and the winners will be the platforms that create frictionless experiences, integrate seamlessly into customer habits, and add real value beyond basic transactions.
Final Thoughts
In 2025, embedded finance, hyper-personalization, and B2B cross-border payments will redefine the fintech landscape in Latin America. Leaders like Nubank and Mercado Libre are setting the pace, while advancements in AI, DeFi, and Open Finance will pave the way for a more inclusive and dynamic financial ecosystem.
Stay tuned as these trends unfold throughout the year. What are your bets for 2025?
🌎 LatAm Fintech News and Insights: January 2025
As we enter 2025, the Latin American fintech scene is already moving and evolving. Here's a breakdown of the key trends shaping the industry:
💸 Equity & VC Updates: A Focus on Credit, Financial Inclusion, and Market Expansion
Key Trend: B2B Credit and Fintech Offerings Are Still Dominating VC Interest
The fintech sector continues to attract significant investment, with a particular focus on credit and digital financial services. Both B2B credit solutions and platforms aiming to bridge gaps in financial inclusion are hot spots for funding.
Highlight: Brazil Finance Group (Brazil) raised $2.8M to boost credit offerings for SMBs.
🛠️ Mergers, Acquisitions, and Strategic Partnerships: Regional Consolidation and Expansion
Strategic Mergers and Acquisitions to Strengthen Regional Presence
Large institutions and fintech startups alike are focusing on acquisitions and strategic partnerships to strengthen their regional presence and enhance their service offerings.
Highlights:
Binance (Brazil): Acquired Sim;Paul, a Brazilian brokerage, to enhance its compliance and operations in the country.
Banco Itaú (Uruguay): Acquired Plexo, a payment solutions company, to expand its fintech presence.
Prosus (Regional): Acquired Decolar, the leading travel platform, signaling deeper integration into LatAm's fintech ecosystem.
🚀 Product Launches and Innovations: Accelerating Financial Access and Digital Payments
Expanding Payment Solutions and Blockchain Integration
There is a clear push towards improving accessibility to financial services through innovations in digital payments, crypto, and tokenized assets. Partnerships between fintechs and traditional institutions are becoming more common.
Highlights:
Satoshi Tango & Depay (Regional): Partnered for crypto payments, enabling interoperable QR code payments across multiple countries.
Bybit (Brazil): Launched a physical crypto card for users to make payments with USDT, BTC, and ETH.
Ditobanx & Tokeny (El Salvador): Set to issue $300M in tokenized assets, opening the door to regulated blockchain-based finance.
💳 LatAm Banking, Financial Services, and Consumer Insights: Trends in Consumer Preferences and Economic Shifts
Shift Towards Digital Banks and Subscription-Based Payments maintains growth
The demand for digital banking and seamless online payment experiences continues to grow in LatAm, with consumers showing a clear preference for digital banking solutions over traditional institutions. The rise of recurring payments and subscription-based models is also evident.
Examples:
48% of Brazilians prefer cards issued by digital banks over traditional ones, reflecting trust in fintech solutions.
Nubank (Brazil): Surpasses Itaú in growth metrics, showcasing the dominance of digital-first banking solutions.
Recurring Payments: Grew by 89% over two years, underscoring the rise of subscription-based payment methods.
🌟 LatAm Fintech News and Insights
💸 Equity & VC Updates
🇧🇷 Trinus Raises $7M for Real Estate and Capital Markets Platform: Secured $7M in Series B extension to connect real estate developers with capital markets.
🇲🇽 Cofers Secures $1M for Digital Treasury Solutions: Raised $1M in a round led by Cracks Fund to expand digital treasury offerings.
🇧🇷 Conta Comigo Digital Raises $525K for Payment Services Expansion: Gained seed funding to enhance digital financial services in Brazil.
🇧🇷 Brazil Finance Group (Lara, Qred) Secures $2.8M to Boost SMB Lending
🇨🇴 Plurall Gains Support from BBVA Spark and FNG: Funded to scale AI-driven credit evaluation in underserved communities.
🇨🇴 Ruta N Launches Medellín Venture Capital Program: Aimed at fostering entrepreneurial capital in the Medellín region.
🌎 BID Invest Injects $50M Into Fintech Venture Fund: $50M allocated to foster financial inclusion and fintech innovation across LatAm.
🛠️ Mergers, Acquisitions, and Strategic Partnerships
🇨🇴 Davivienda and Scotiabank Forge Regional Alliance: Strengthening digital banking and operational efficiency across Colombia, Panama, and Costa Rica.
🇧🇷 Binance Acquires Sim;Paul to Bolster Brazilian Operations: Strengthening Binance’s compliance and operations in Brazil.
🇨🇴 Bold Acquires Tuily for SME Financial Tools: Expands financial management services for Colombian SMEs.
🇺🇾 Banco Itaú Acquires Plexo to Enhance Payment Solutions: A move to expand Itaú's fintech presence in the region.
🇦🇷 Prosus Acquires Decolar for $1.7B: A strategic acquisition expanding Prosus’s LatAm fintech footprint.
🚀 Product Launches and Innovations
💡 Brazilian Pilotin Introduces Credit Management Solutions: Offering tools to help businesses and consumers improve credit management.
💵 Banco Inter Launches Dollar Credit Card for Retail Customers, previously exclusive to private banking customers.
🌎 Satoshi Tango and Depay Partner for Crypto Payments: Enabling crypto payments via interoperable QR codes across multiple LatAm countries.
🇲🇽 Nu Partners with Yastás for Cash Services in Mexico: Cash deposits and withdrawals are now available at 5,000 locations across Mexico.
🇵🇪 Kuady Launches Prepaid Mastercard in Peru: Offering secure and flexible payments with wallet balances.
🌎 Bybit Rolls Out Physical Crypto Card in Brazil: Supports payments in crypto with cashback and integration with digital wallets.
🌎 Zinli and Zoom Team Up for Seamless Shopping in Venezuela: Simplifying international shopping with prepaid cards and locker systems.
🛡️ Koin Invests R$30 Million in Anti-Fraud Measures: Enhancing security across Brazil and LatAm operations.
💳 LatAm Banking, Financial Services, and Consumer Insights
💳 48% of Brazilians Prefer Cards from Digital Banks: Survey reveals growing trust in digital banks for credit services.
🏢 JPMorgan Mandates 5-Day Office Work Week Starting March
🔄 Recurring Payments Grow 89% Over Two Years: Significant rise in subscription-based payment models.
💸 Binance Achieves $100 Trillion in Accumulated Volume Over 7 Years: A major milestone for Binance and digital asset trading.
⚡ Fast and Secure Transactions Lead Payment Trends for 2025: Focus on improving speed and security in transactions.
💳 Average Credit Card Debt Reaches R$4,300 Among Delinquent Accounts: Ongoing challenges with consumer debt in Brazil.
🔄 PagBank Undergoes Restructuring, Lays Off Hundreds: Strategic workforce reductions to adapt to market demands.
📊 Nubank Surpasses Itaú in Growth Metrics: Digital bank Nubank continues to outperform traditional banks in LatAm.
That’s a wrap! ✌🏼
Thank you for reading this edition of my newsletter. If you enjoyed it, feel free to subscribe and share it with your friends, colleagues, or anyone passionate about fintech and innovation. See you next time!