Fintechs in Latin America 2025: Growth and Challenges

Vero Wiedemann05 June

Ever wondered why fintech is changing the way people access money in Latin America? In this article, we break down how this movement began, what’s driving it, and which startups are really making a difference. At Boomit, we know firsthand that financial transformation is no longer a trend – it’s a daily-growing reality.

With over 3,000 active startups in the region, according to data from the IDB and Finnovista, the fintech sector has become an innovation engine that’s not only reshaping financial services but also social realities. And here at Boomit, where we work side by side with fintechs from their early rounds to regional expansion, we’re witnessing it firsthand.

The Current Landscape of Fintech in Latin America

The rise of fintech in the region is no coincidence. For years, millions of individuals and small businesses were left out of traditional financial systems. From Boomit’s perspective, there’s a clear pattern: those who first address these unmet needs tend to build lasting relationships with their users.

Today, countries like Brazil, Mexico, Argentina, and Colombia lead the fintech adoption in the region, offering solutions from digital wallets to investment platforms, crypto services, and cross-border payments.

Key Fintech Segments and Their Growth in the Region

The most relevant fintech segments in Latin America are responding to real-world daily needs:

• Payments and Remittances: One of the most dynamic sectors. Platforms like Mercado Pago, Clip, Ualá, and dLocal make it possible for thousands of businesses to accept digital payments, fostering formalization and access to new markets.

• Lending: Fast credit, with no paperwork or banking history, is no longer a luxury. Startups like Creditas and Kueski offer faster alternatives than traditional banks.

• Personal Finance Management and Education: Apps like Fintual or Flink allow users to save, invest, and educate themselves along the way. At Boomit, we see how content marketing in fintech can boost conversion rates.

• B2B Solutions: Digital onboarding, identity verification, and fraud prevention technologies help banks, wallets, and platforms operate confidently.

• Crypto and Blockchain: More and more users in the region are choosing crypto for savings or remittances, especially in countries dealing with inflation or banking restrictions.

The Impact of Fintech on Financial Inclusion

Before fintech arrived, millions lived without access to basic financial services: no bank accounts, loans, or credit cards. The traditional banking system, with its strict requirements and limited branches, left a large portion of the population off the map.

Fintech changed that. With mobile solutions, digital onboarding, and products tailored to diverse realities, they brought millions into the financial fold. Companies like Nubank and Ualá were pioneers in this transformation, allowing people to open accounts in minutes directly from their phones – and at no cost.

The result: Over 22 million people in Brazil accessed financial services for the first time thanks to Nubank. In Argentina, Ualá did the same, giving young people and informal workers the chance to save or take out loans for the first time.

And this is just the beginning. According to the IDB, 40% of fintechs in Latin America were founded with a clear focus on underserved populations.

Regulatory Challenges and Opportunities for Fintech Startups

Fintechs face a challenging landscape. The legal framework varies across countries: Mexico leads with a strong fintech law, but other markets still have ambiguous or non-existent regulations.

This creates real hurdles: legal uncertainty, scaling barriers, and difficulties attracting investment. But there are also concrete opportunities:

• Participate in building fairer regulations.

• Stand out through transparency and financial education.

• Partner with traditional banks and players to scale faster.

At Boomit, we believe that this context demands creativity, clear communication, and a strategic outlook. We’ve helped many startups position themselves with regulators, users, and investors with solid, trustworthy narratives. Our take: those who navigate this space well could lead the next big growth surge.

The Most Relevant Fintechs in Latin America

These companies aren’t just scaling; they’re changing the financial game in LATAM:

• Nubank (Brazil): Started by offering a no-fee credit card and now has over 114 million customers. It’s listed on the New York Stock Exchange, operating in Brazil, Mexico, and Colombia, and expanding with accounts, loans, and insurance.

• Ualá (Argentina): Launched in 2017, it allows users to access a prepaid account and card in minutes directly from their phone. Now present in Argentina, Mexico, and Colombia, it has over 8 million users. Its focus on user experience was key to its mass adoption.

• dLocal (Uruguay): Founded in 2016 as a cross-border payment solution for global companies looking to sell in emerging markets. Today, it connects over 400 international merchants across 25 countries in LATAM, Africa, and Asia, offering local collections without the need for its own bank entity.

• Mercado Pago (Argentina): Launched in 2004 as Mercado Libre’s fintech arm, it started enabling online payments for the marketplace. Now, it’s a financial superapp with over 80 million active users in Latin America, offering digital wallets, SME loans, and payments in physical stores.

• Clip (Mexico): Founded in 2012, it began offering POS terminals connected to smartphones without fixed contracts for card acceptance. Today, it has over 400,000 devices deployed in Mexico, allowing small businesses to digitalize their sales and reduce operational costs.

• RappiPay (Colombia): Launched in 2021 as Rappi’s fintech arm, it started offering digital accounts and prepaid cards integrated within the delivery app. Now, it has over 2 million users in Colombia, expanding to Mexico and Brazil, enabling instant payments, money transfers, and loyalty rewards.

We also want to mention some fintechs that, although not Latin American, have served as inspiration and role models for the largest fintechs in LATAM:

• Stripe (USA): Today, many e-commerce and apps in Latin America accept online payments thanks to tools like Stripe. Its regional expansion has helped thousands of companies digitize payments with security and scalability.

• Revolut (UK): Initially a currency exchange app, it now offers everything from crypto to insurance. Its entry into Mexico and Colombia marks the interest of major players in conquering the Latin market.

• Chime (USA): A pioneer in offering salary advances and no-fee accounts. Although its operations are based in the U.S., many LATAM fintechs have replicated its model, showing the power of user-centered innovation.

• Mercury (USA): Focused on startups, it allows businesses to open U.S. accounts fully digitally. Many Latin American companies choose it to expand internationally without bureaucratic hurdles.

• Shopify (Canada): While focused on e-commerce, Shopify has been key to financial inclusion for entrepreneurs. With its integrated payment solution and digital sales tools, it helps monetize projects that previously had no access to financial tools.

Future Trends in Latin American Fintech

From Boomit’s experience, here are some trends that are already shaping the future:

• Open Finance: Sharing data between institutions boosts competition and personalization. Imagine offering loans with rates tailored to a user’s habits and real-life profile.

• AI in Decision-Making: Predictive analytics not only improves credit scoring but also helps prevent fraud and personalize the experience. If you run a fintech, imagine how much more you could anticipate your users’ needs with AI.

• Embedded Finance: Integrating financial services into platforms like e-commerce or delivery apps extends reach without friction. The next fintech won’t necessarily be a financial app.

• Sustainability: Green fintechs are gaining ground. Funds that invest with ESG criteria, loans for sustainable projects, and users looking for impact are all part of the new paradigm.

A Region in Constant Evolution

The fintech ecosystem in Latin America still has plenty of room to grow. Opportunities are there, talent is growing, and more users are ready to try new solutions.

At Boomit, we’re excited to partner with the fintechs making a positive impact. If you want to learn how we can help you position your value proposition and accelerate growth, contact us.