Will LatAm’s payment startups feel the ‘PIX-effect’?

Investing in Latin America’s payment fintechs is having a moment – but will the region’s central banks kill off their revenue model by adopting their own version of Brazil’s PIX?

There has been an increase in investment in fintech payment startups in Latin America this year, according to data from the Association of Private Capital Investment (Lavca).

Fund managers invested $391 million across 22 payment startups in the first half of 2024, which was more than the entire volume of 2023 ($387 million).

According to Emanuel Hernandez, director of research at Lavca, the attractiveness of payment startups drove the fintech sector to “attract the majority of venture capital dollars invested in Latin America – with 41% of all VC capital deployed in the region since 2019”.

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