Payment systems are 22% of the solutions proposed by Brazilian startups. FinTech firms also show interest in Artificial Intelligence (AI) and automatic learning.
According to a report in the financial publication Valor Investe, Brazilian financial technology (FinTech) companies have a great interest in artificial intelligence (AI), machine learning and blockchain technologies, which are the platforms used for issuing cryptocurrencies such as Bitcoin (BTC).
The study indicates that these companies are focused on improving payment systems, a feature included in cryptocurrencies as part of their promising technology. For that reason, the meeting of these two sectors seems to be the most natural thing.
It should be noted that the goal of most emerging FinTech companies is to provide people with financing more easily. Therefore, one of the opportunities for the sector lies in the fact that Brazil has a large unbanked population. In other words, a large number of people do not have access to the traditional banking system.
FinTech Companies Interested in Blockchains
FinTech companies are those financial services that provide technology-based solutions. According to Valor Investe, about 500 FinTech companies are currently operating in Brazil. Of these, 57% would be in São Paulo, where the largest volume of innovations in the sector is concentrated.
As payment systems are 22% of the solutions proposed by these Brazilian startups, among the main technologies that interest them are blockchains. The study shows that more than 44% of the interviewees want to innovate with the technology underlying cryptocurrencies. This means that blockchains are among the three most desired innovations, besides AI and machine learning, by Brazilian FinTech firms.
Business Innovation in 2019
For crypto developer Jimmy Song, Bitcoin is a major financial innovation greater than startups. Enthusiasts consider that the main digital cryptocurrency alone would be a complete financial solution for people. As a result, the crypto market has seen a huge growth in solutions designed to facilitate the adoption of cryptocurrencies within the business sector.
In recent days, Cielo (CIEL3), which is known as Brazil’s largest operator of credit and debit card payment systems, partnered with Bitfy to accept Bitcoin on its cashpoint machines. This partnership would allow the businesses that accept BTC to receive payments in Brazilian reals, to the currency conversion made by Bitfy.
Natura, a Brazilian company that markets and manufactures beauty and personal care products, said that there is room for blockchain within its operations. Also, Valid, a technology provider in Brazil, acquired a FinTech company to strengthen its operations with a blockchain.
BlueBenx is another company that arrives in Brazil with a financial solution involving cryptocurrencies. Starting in 2020, customers will be able to have a BlueBenx account that will allow making transfers and trading cryptocurrencies in a single solution.
In summary, cryptocurrencies and blockchains are increasingly merging with Brazilian FinTech and traditional companies, which is an important move for the South American country to grow and innovate, mainly in a market where banks still have sovereignty.
To conclude, most Brazilian FinTech companies stated that they do not see banks as enemies but as partners. Besides, 63% of them already have international operations. Brazil already has 11 unicorns in the FinTech sector, which are worth more than USD 1 million, having Nubank as one of the most prominent.
By Willmen Blanco