A number of months after consolidating its enterprise in Chile, UPago, the Chilean recurring funds fintech, just lately expanded its operations to 2 key international locations on this monetary phase: Mexico and Colombia.
In line with the corporate, this growth goals to consolidate the fintech as one of many main gamers in LatAm, serving to small companies cut back fee prices by bettering their monetary administration.
The Chilean fintech emerged in 2019 to simplify the administration of those corporations’ fee and assortment platforms. It permits companies to manage their revenue and accounts payable, enhance their money assortment, safe their revenues, and cut back their prices.
In its residence nation, UPago has shoppers in automotive loans, monetary retail, schooling establishments, and actual property, amongst others.
A multi-process monetary platform
UPago ensures the automation and personalization of fee wallets amongst its major companies. It controls and supplies full fee and financial institution reconciliation traceability, preventive and delinquent assortment administration, and ultimate efficient assortment.
In a current interview, UPago’s normal supervisor, Felipe Pastenes, said that “we guarantee assortment from the second a group doc is issued, even when it turns into delinquent, eliminating guide processes, decreasing prices, bettering restoration instances, and bettering funds.”
Fintechs’ growth to underserved LatAm international locations
Within the final two years, a number of fintechs have sought to broaden their operations to the Mexican and Colombian markets, representing vital alternatives for the sector in LatAm.
That is primarily as a result of each markets share economies much like these of nations akin to Brazil and Chile and include markets virtually 5 instances bigger than these of different international locations.
In Mexico, for instance, Enterprise Capital funding is extra up-to-date with what is going on within the U.S. market, attracting many buyers keen to wager on disruptive corporations in LatAm.
However, along with that, one other important issue for these international locations to be so enticing for fintechs is the extent of bankarization and the next room for development of monetary companies startups like UPago.
In a rustic of virtually 130 million individuals, akin to Mexico, for instance, solely 40% of persons are affiliated with a monetary establishment — a pattern that’s the reverse of what occurs in Chile, which has greater than 90% of its inhabitants banked.
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Jorge C. Carrasco is a Contributing Reporter at Fintech Nexus. He reviews on fintech, financial system, banking, startups, and expertise, overlaying probably the most impactful tales from a Latin American perspective.
He has contributed to a number of worldwide publications, akin to Overseas Coverage, The Spectator Australia, Estadão, Época, Washington Examiner, and Quillette. Initially from Havana, Cuba, he’s now primarily based in Brazil.