To increase its user base, Latin American open finance company Syncfy has raised $10 million.
The money, a seed round headed by Point72 Ventures, comes at a time when digital payments are becoming increasingly popular in Latin America.
In a press release, Gerardo Trevio, co-founder and CEO of Syncfy, said, “The positive response we’ve received from our customers in Latin America so far has been overwhelming. The funding we are announcing today will enable Syncfy to meet the demand and bring financial automation to even more partners across the region.
Through a single API, the Syncfy platform provides access to financial data from more than 125 banks, digital wallets, tax agencies, utility suppliers, cryptocurrency exchanges, and blockchains located in more than 15 Latin American nations as well as other countries worldwide.
Large banks, enterprise software providers like BBVA and Intuit, as well as startups like FinTech unicorn Clara, are some of its clients.
The business claims that it would utilize the cash to provide “payment initiation solutions in important regions, providing interoperable access to financial data as well as the smooth transfer of funds through API” and to grow its clientele in Argentina, Brazil, and Colombia.
According to a recent article, the usage of digital payments is expanding swiftly throughout Latin America and is on track to overtake cash as the primary means of payment there.
According to one estimate, the number of mobile bank accounts in Latin America is expected to grow by 67% in 2020, and QR code payments are also expected to grow rapidly.
In its first ten months, the central bank of Brazil’s Pix system attracted 60% of the country’s population, while since its launch in 2018, Argentina’s Mercado Pago has handled more than 8.5 million QR code payments.
