Before the Pandemic, the forecast was that Brazil would end the year 2020 as the ninth economy in the world. Brazil is the main economic power of Latin America, with a Gross Domestic Product of roughly US$ 2 trillion. The power scenario also highlights another characteristic not so positive in the country: inequality. This inequality is ALSO evident, but not exclusively, in the problem of access to credit by the needy population. A tendency to try to transform this scenario is precisely from the fintech market that has as a principle to make it easier to access the financial transactions and products that were previously banking.
In 2018, BACEN (Central Bank of Brazil) and the National Monetary Council created a new regulation to increase the number of payments by electronic means, encouraging the growth of alternative services to the customer.
The need for accessibility services
Before the Pandemic, Brazil had 45 million unbanked people. This number dropped to 25 million people with the payment of emergency aid through the banking system, but the number is still quite significant.
A survey conducted, in 2019, by TIC Domicílios, shows that 70% of Brazilians (almost 127 million people) access the Internet regularly, including purchasing and requesting services. Therefore, nothing is more plausible than to link the Brazilian demand for inclusion alternatives to the operation of fintech. The reduction in the number of unbanked people demonstrates that there is the possibility of bringing more people into the digital world of financial services.
As important as the real safety of transactions is the sense of security, usability, and trust that a brand or application generates in the customer. The service simplicity and accessibility of these companies increase customer's confidence in the product and, consequently, further increase its use.
The Brazilian distinction in the fintech market
With the expansion of the Brazilian fintech market and the regulator itself, BACEN (Brazilian Central Bank), which itself has developed an instant payment system that should work 24 hours a day, seven days a week, called PIX, further boosts the financial contribution around here. Venture capital companies receive high investments while developing and seeking innovative solutions.
As reported by Estadão (brazilian news website), Nubank and Banco Inter alone attracted more than US$800 million in investments. This raised Brazil to the level of the fifth-largest investment recipient in 2019. Including the remaining national fintech, the country received an inflow of US$ 1.6 billion. We are only behind the U.S. (US$26.1 billion), the United Kingdom (US$6.3 billion), India (US$3.7 billion), and China (US$1.9 billion). These numbers are encouraging and drive the development of more fintech in Brazil, looking at investment possibilities.
However, the answer to success is not so simple. With the same profile as startups, many fintech companies usually have difficulties in obtaining investments due to the modern branding of most fintech not being enough to ensure the survival of these companies in the market.
So, what is needed?
That's the golden question, and it's in the answer that WePayOut structures itself. You have to stand out. The great need of the market is to have, in fintech, new opportunities, new services and to plan for the future.
WePayOut is a third-party payment processing fintech that manages much more than just processing bank transfers. We propose to offer a complete solution for payments to third parties, offering a wide range of options from prepayment qualifications to diversified ways to pay the final beneficiary, in a single dashboard and API.
The solutions above are offered to the global market, allowing cross-border transactions and remittance in different currencies to Brazil, serving mainly GIG economy, remittances, outsourced, or payroll payments.
In a growing environment, our strength is to deliver services that are efficient, diverse, safe, and convenient for you and your business.
Would you like to know more about us? We recommend learning about our product for bank account validation.
Also, if you are interested in learning more about our history, check out the mistakes and achievements that led our experts to design solutions at WePayOut.