Fintech- Whatsapp Makes the Entry, not Surprisingly from Brazil

WhatsApp launched in-chat digital payments in Brazil on 15th June.

This is great news for Fintech as a whole! Also, it is not surprising that the WhatsApp digital payments launch was done in Brazil.

The Latin America market in general and Brazil in particular is ripe for Fintech innovation. Despite progress in the financial sector, many countries in the region lag behind other emerging and developing countries in terms of financial products.

The region saw an exodus of foreign banks after the global financial crisis and many which stayed reduced their exposure in the region. One thing is for sure, no new global banks have entered.

There is a huge potential for Fintech to:

1) Reduce transaction and services costs and foster financial inclusion and development

2) Enhance financial sector competition and improve intermediation.

3) Support growth and reduce poverty in the region by strengthening financial inclusion, development, and intermediation

However, a few things needs to be thought through 1)cybersecurity, 2) financial integrity, 3) stability risks, 4) regulatory responses, and 5) considerations for central bank digital currencies.