Latin America FinTechs Expand Despite Regional Volatility

Latin America has captured an outsized share of global attention in recent weeks as geopolitics, elections and monetary pressures sharpen focus on emerging markets.

Despite the volatility in the region, however, Latin America’s FinTech ecosystem remains defined by steady financial innovation, backed by renewed funding flows into the region, especially via venture capital.

Digital wallets, account-to-account transfers and real-time payment systems are displacing cash, modernizing commerce and expanding access to formal financial services, according to the PYMNTS Intelligence report “Digital Developments: Charting Digital Payment Growth in Latin America.”

The shift is structural rather than cyclical. The report found that experts predict that by 2030, digital payments will account for roughly two-thirds of eCommerce transaction value and nearly half of point-of-sale value across the region, reflecting sustained changes in consumer behavior rather than short-term substitution.

Venezuela Highlights Volatility and the Search for Alternatives

As for the volatility, recent developments in Venezuela underscore the political and economic uncertainty that still shapes parts of the region.

A Saturday (Jan. 3) Zero Hedge report pointed to claims that the country may be tied to tens of billions of dollars in bitcoin reserves, illustrating how digital assets are increasingly discussed alongside sovereign finance in countries facing capital controls and currency instability. And as noted here,

Meanwhile, JPMorgan Chase last month reportedly froze accounts used by stablecoin startups BlindPay and Kontigo because they did business in Venezuela and other places subject to sanctions or other restrictions.

Digital Commerce’s Tailwind Across Latin America

The overall trend toward digitization in the region is up and to the right, if it were to be laid out on a graph. PYMNTS Intelligence data showed that digital commerce continues to benefit from a strong and persistent tailwind. Headed into 2025, digital payments accounted for 48% of eCommerce transaction value and 30% of in-store value across Latin America, while cash’s share of in-store transactions had fallen to 25% and continues to decline.

Mobile wallets, A2A transfers and buy now, pay later (BNPL) offerings are central to this transition, underpinning growth into the current year, particularly in markets where smartphone penetration exceeds 70%. These tools are not only replacing cash but also enabling first-time access to digital payments for consumers previously excluded from traditional banking channels.

Brazil Sets the Pace

Brazil remains the region’s clearest beacon for digital payments at scale. The PYMNTS Intelligence report “Global Digital Shopping Index: Brazil Edition” found that 61% of Brazilian shoppers used a mobile phone for retail purchases, the highest rate among surveyed markets.

That consumer behavior is reinforced by infrastructure. Pix, Brazil’s government-backed real-time payment system, processed 64 billion transactions in 2024 alone, surpassing combined debit and credit card volumes and cementing its role as a national payments backbone.

Mexico Emerges as a Parallel Growth Engine

Mexico is increasingly asserting itself as an additional engine of FinTech growth alongside Brazil, driven by mobile adoption, fast payments and maturing regulatory frameworks.

PYMNTS Intelligence data showed that real-time payment systems such as CoDi are gaining traction as mobile internet access expands, supporting wider adoption of digital wallets and A2A transfers.

Analysis by the World Bank placed Mexico among the Latin American countries where fast payments have moved beyond the pilot phase, contributing to a 130-fold increase in instant payment transactions across the region since 2017 and helping fast payments surpass card volumes for the first time as recently as 2024.

On the commercial side, Mexico City-based Kapital’s rise to a $1.3 billion valuation underscores how small business-focused digital banking, credit and payments platforms are attracting sustained investor confidence as businesses shift toward real-time, data-driven financial operations.

Capital Continues to Follow Infrastructure

These developments are not isolated. Capital continues to flow toward FinTechs building infrastructure rather than point solutions. In Brazil, Cumbuca has positioned itself as an on-ramp for global FinTechs seeking faster access to Pix and open finance, highlighting ongoing demand for platforms that simplify regulatory complexity while preserving operational control.

Latin America’s FinTech funding has shown signs of recovery and growing investor confidence, with total venture capital for startups in the region rising in 2025. In the third quarter alone, Latin American startups collectively raised about $1 billion across seed to late-stage rounds, according to data from Crunchbase, marking a 21% year-over-year increase and an uptick in late-stage and growth financing as investors focus on scaling businesses.

This broadened capital flow has been driven by strong performance in markets like Brazil and Mexico, where digital finance platforms continue to attract local and international investment, suggesting sustained momentum this year.

Global Networks Lean Into Agentic Commerce

Large payment networks are also doubling down on the region’s digital readiness. Mastercard announced in December plans to introduce its Agent Pay capabilities in Latin America, citing mobile-first shopping behavior, tokenization readiness and the scale of real-time payments adoption across the region.

The move reflects a broader shift toward embedded, automated payments that operate seamlessly across browsing, buying and settlement, a model increasingly aligned with Latin America’s mobile commerce habits.

Demographics continue to strengthen the long-term case. The World Economic Forum pointed to centralized regulation, mobile adoption and inclusive infrastructure as key drivers of Latin America’s FinTech growth.

Political volatility will continue to shape headlines across Latin America. However, the data shows that the region’s FinTech ecosystem will increasingly be anchored in real-time payments, mobile commerce and embedded financial models that prove resilient and scalable.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.