This week, Brazil announced a new instant payment systems PIX. Uber immediately responded by partnering with EBANX in an effort to integrate the platform for their Brazilian customers. The Inter-American Development Bank's (IDB) president also stressed the importance of job creation for Latin American economic development, while Rakuten Mobile and Telefónica partner to transform cellular technology. For the full details and weekly updates delivered to your inbox subscribe to our newsletter, LATAM Weekly.
Brazil Upgrades Real-Time Payments Rails, Goes Live With PIX
Real-time payments continue to gain traction around the world. In Brazil, the country’s banking system is giving an upgrade to its instant payments system. A new instant payment network overseen by the Central Bank of Brazil, called PIX, began full operations this Monday (Nov. 16) and is already processing 10 million transactions a day.
The new system is an upgrade to the current system known as SITRAF, which is similar to wire transfer systems used in the U.S.
Joaquim Kiyoshi Kavakama, CEO of Brazil’s Interbank Payment Chamber (known as “CIP”), noted that the two systems- PIX and SITRAF- will work together as Brazil’s payments-ecosystem continues to evolve.
“We are looking to bring many value-added additions to the PIX experience so we will be part of this ecosystem,” Kavakama said.
Uber Teams With EBANX On PIX Payments In Brazil
Rideshare giant Uber is partnering with Brazilian FinTech EBANX to be the exclusive payments processor for PIX, the country’s new instant payment network.
Claudia Woods, General Manager for Uber Brazil, said the Brazilian market is pivotal for Uber. With PIX, Uber can deliver “a new payment experience to our millions of users that is aligned with the objective to always provide and think of ways to make life easier through technology” (PYMTNS).
The relationship between Uber and EBANX adds to their existing partnership for Uber Cash that began last year. The new collaboration further gives Uber users in Brazil a way to get Uber Cash and pay for orders directly on UberEats.
Job Creation is Key to Latin American Economic Development, According to Top Officials
Mauricio Claver-Carone, who became the Inter-American Development Bank's (IDB) president in October, sees job creation and growth of the middle class in Latin America and the Caribbean as the key to both regional economic development, and a boon for U.S. policy in the region.
Carone, the first IDB President from the U.S., told The Hill that he sees job creation as the IDB's top goal.
He explained that he sees the bank's future as prioritizing small and medium-sized businesses, with a focus on women-owned firms (over the mega-projects most Latin Americans associate with the bank).
Rakuten Mobile and Telefónica Join Forces to Transform Cellular Tech
Madrid-based Telefónica and Japan’s Rakuten Mobile have announced they will work together to advance OpenRAN (radio access network) technology, 5G core networks, and operations support systems (OSS).
With expansive operations across Europe and Latin America, Telefónica plans to run pilots of OpenRAN technology during 2020 and 2021, as a predecessor to “a massive deployment in one of [our] main cities, our main operations” in the first quarter of 2022 (Rakuten).
The ability to run the radio network software in data centers at the edge of the network (rather than in a proprietary hardware in a base station) creates enormous opportunities to improve the software, and could provide the foundations telecoms networks will need “to become fully autonomous,” Tareq Amin, Representative Director, EVP and CTO of Rakuten Mobile, explained.
Podcast: Manuel Silva of Mouro Capital Discusses Fintech in Latin America
In Lend Academy’s recent podcast, Manuel Silva, General Partner of Mouro Capital (formerly Santander InnoVentures), talks fintech in Latin America and why it is still such a vibrant region for fintech.
He explains why Latin America remains one of the hottest regions in the world when it comes to fintech. The large yet undeveloped market offers more opportunities in comparison to other parts of the world, andis home to Nubank: the largest fintech company in the world (outside of China).
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