FinTech in Latin American

2016 Multicaja S.A.

2014-2016 Ms. In Computer Science

2015 Internship in Shanghai Jiao Tong University

2014 Internship in IACS Missing Data

2013 Taruca Lab Part-time Web Developer2014

WDR 2014 Wordlwide Bank

WDR 2014 Wordlwide Bank

Traditional context

Payment transactions in LATAM by instrument in USD billions (2009-2014)

Tecnocom Report Tendencias en medios de pago 2015

+ 0.1%

-13.9%

+ 1.8%

+11.8%

Number of payments transaction in LATAM in millions (2009-2014)

Tecnocom Report Tendencias en medios de pago 2015

• Cards are used for small transactions

• Big transactions made with Chequeswere replaced by Credit transfers

Number of debit and credits cards every 1000 habitants

Tecnocom Report Tendencias en medios de pago 2015

Number of debit and credits cards every 1000 habitants

Tecnocom Report Tendencias en medios de pago 2015

• Debit cards are almost twice than credit cards in BR,CL,PE,DOM (4.7 times in MX)• Credit card access is restricted

Average annual spending with debit and credits cards in USD

Tecnocom Report Tendencias en medios de pago 2015

Preferences of payment methods (2014)

Tecnocom Report Tendencias en medios de pago 2014

I usually prefer to pay in cash everything. I dislike cards

I always pay with card big expenses and with cash small ones

It does not matter to me use cash or cards

I always prefer cards, even for small expenses. I avoid cash.

Retail

Principal payment methods accepted in retail (2015)

Credit Card

Debit Card

Cheque

Credit Transfer

• Debits are credits are the main options

Many retails do not accept cards

Reasons of non acceptance (2015)

The cost of maintenance is greater than the profit

I do not want to pay fees

Lector Type availability in POS (2015)

• Contactless technologies are almost not available• PE and MX have a gap in chip lectors

Band Magnetic Lector Chip Lector Contactless Lector

Other payment methods in retail (2015)

Prepaid Cards

Mobile Pay

Pay on delivery

Ecommerce

Ecommerce size in LATAM by country in USD millions

Internet use in retail (2015)

The commerce has a web

The commerce sales online

Reasons to do not have an online sales service in retail (2015)

We do not have the resources

We do not have the expertice

Accepted payment methods for online sales (2015)

Credit Card

Debit Card

Credit Transfer

Paypal

Categories bought by internet frequently

Electronic Devices

Trips, hotels

Event Tickets

Fashion

Books, Music, Movies

Home Equipment and appliances

Medicines

Bank Products

Insurance

Beauty Products

MultiCaja

• Store credit cards network• 700 USD millions authorized (500 USD millions paid)• Cobrand with Paypal• Partnership with multiple local commerces including Groupon,

Falabella and others.

• Looking for new payment methods that will change the way we pay• Partnership with virtual prepaid cards issuer

Opportunities

• Payment methods for people outside the traditional bank system• Payment methods that allow international purchases without credit card• Enhance trust in electronic payment methods through anti fraud solutions

and better guaranties• Reduce costs and commissions of POS for retail • Offer new services in selected ecommerce categories• Financial Education

FinTech startups in LATAM

Some: http://www.nxtplabs.com/es/programa-fintech-2016/

Personal Investments

FinTech startups in LATAM

Some: http://www.nxtplabs.com/es/programa-fintech-2016/

Personal FinancesPersonal Investments

FinTech startups in LATAM

Some: http://www.nxtplabs.com/es/programa-fintech-2016/

Personal FinancesPersonal Investments

FinTech startups in LATAM

Payments

Some: http://www.nxtplabs.com/es/programa-fintech-2016/

Fraud Detection

Personal FinancesPersonal Investments

FinTech startups in LATAM

Payments

Some: http://www.nxtplabs.com/es/programa-fintech-2016/

Bitcoin TradersFraud Detection

Personal FinancesPersonal Investments

FinTech startups in LATAM

Payments

Some: http://www.nxtplabs.com/es/programa-fintech-2016/

Bitcoin TradersFraud Detection

Personal FinancesPersonal Investments

FinTech startups in LATAM

Payments

P2P Loans

How easy is starting a business?

How easy is starting a business?

Source http://www.doingbusiness.org/rankings

#62

How easy is starting a business?

Source http://www.doingbusiness.org/rankings

#62

#65

How easy is starting a business?

Source http://www.doingbusiness.org/rankings

#62

#65

#84

How easy is starting a business?

Source http://www.doingbusiness.org/rankings

#62

#65

#84

#97

How easy is starting a business?

Source http://www.doingbusiness.org/rankings

#62

#65

#84

#97

#174

Final idea

Talk with locals

ContactAugusto Sandoval

augustocsandoval@gmail.comFelix Halcartegarayfelixh@incubauc.cl

Appendix

Fintech News Octubre 2014Zuum extiende sus servicios de pagos móviles a todas las operadoras de Brasil. La joint venture entre MasterCard y el operador móvil brasileño Vivo amplió el servicio a todos los operadores de telefonía móvil en el Brasil, que suponen más de 70 millones de smartphones activos en ese país. Hasta ahora, sólo los clientes de Telefónica Vivo tenían acceso a la cuenta de cheques en el teléfono. La Cuenta Zuum permite la realización de pagos de facturas y transferencias de dinero a través de los teléfonos móviles y el uso de una tarjeta de prepago Mastercard para compras y retiros. Noviembre 2014La Asociación Brasileña de Empresas de Tarjetas de Crédito y Servicios (ABECS) trabaja en la unificación de las redes de pagos dado el alto y creciente porcentaje de transacciones realizadas por medio de tarjetas, con el propósito de que las tarjetas sean aceptadas en cualquier POS sin importar que la red de pagos sea Visa, Mastercard, American Express o las brasileñas Cielo y Elo. El Banco Santander adquiere un 5% de la plataforma de banca móvil Monitise por 41,6 millones de euros a través de Santander Innoventures, fondo de innovación en servicios financieros que se presentó en julio de 2014 y que busca facilitar el crecimiento de una oferta digital global del banco. Otros socios estratégicos de Monitise son Mastercard y Telefónica.Diciembre 2014Banco de Chile lanza la app Mi Pago para realizar transferencias de dinero entre clientes del banco a través de la generación de un código QR asociado a una cuenta, reduciendo los pasos y tiempo de tus transacciones sin necesidad de digitar los datos de la cuenta de destino. LINE Pay ofrece servicios de pago en colaboración con las tarjetas de crédito internacionales. De momento está limitado a compras dentro de la aplicación de mensajería pero próximamente se podrán

Cash in circulation in LATAM as percentage of PIB (2009-2014)

Tecnocom Report Tendencias en medios de pago 2015

• BR and CL lowered the available cash• Governments have incentives to support cards in order to reduce the

informal economy

Retails against incorporation of cards payments for next year (2015)

Many retails do not accept cards