The Latin America fintech as a service industry size is estimated to reach US$ 26,946.1 million in 2024. It is set to register a CAGR of 19.3% during the assessment period, totaling a valuation of US$ 1,58,672.2 million by 2034.
Demand is expected to remain high for payment processing services across Latin America. This is due to rising popularity of digital or cashless payments. The target segment is anticipated to grow at a healthy CAGR of 21.9% through 2034.
Latin America Fintech as a Service Industry Insights
| Attributes | Key Insights |
|---|---|
| Base Value (2023) | US$ 23,139.7 million |
| Estimated Latin America Fintech as a Service Industry Value (2024) | US$ 26,946.1 million |
| Projected Latin America Fintech as a Service Industry Revenue (2034) | US$ 1,58,672.2 million |
| Value CAGR (2024 to 2034) | 19.3% |
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FinTech as a service (FaaS) is gaining immense popularity across regions like Latin America. This is due to the ability of this model to provide financial technology (FinTech) functionalities and solutions in a comprehensive and scalable manner.
FaaS companies offer a collection of modular and adaptable FinTech tools, services, and infrastructure that seamlessly integrate into third-party applications or platforms. FinTech as a service enables businesses, including those outside the financial sector, to harness FinTech capabilities without the need to develop these services independently.
FaaS allows businesses to quickly adopt and implement cutting-edge FinTech innovations without the need for extensive in-house development. This enhances their agility and responsiveness to business demands.
Instead of investing heavily in building and maintaining complex FinTech infrastructure, businesses leverage FaaS to reduce costs. This pay-as-you-go model often proves more cost-effective than developing and maintaining these services independently.
Businesses concentrate on their core competencies while outsourcing specialized FinTech functionalities to FaaS providers. This allows them to enhance their offerings without diverting resources away from their primary business activities.
The FaaS model is designed to be scalable, allowing businesses to adapt to changes in demand easily. As their user base grows or their requirements evolve, they scale up or down with the services.
FaaS bridges the gap between the traditionally underserved and broader financial system. It is revolutionizing the digital wallet in Latin America. Growing demand for digital payments and expansion of e-commerce are expected to boost growth of the fintech as a service industry in Latin America.
Integration of financial services into non-financial platforms will likely propel demand for fintech services. Rising focus on data privacy is also anticipated to benefit the target industry.
Certain factors could also limit the growth of the Latin America fintech as a service industry. These include limited financial infrastructure and increasing number of cyberattacks.
From 2019 to 2023, the fintech as a service industry in Latin America experienced a CAGR of 16.2%, totaling a valuation of US$ 23,139.7 million in 2023. This period saw significant changes in financial technology as businesses and consumers sought increasingly innovative solutions to address traditional banking challenges.
Fintech as a service, with its agile-scale offerings, emerged as a key driver for financial institutions and businesses starting all capabilities. The region saw a growing appetite for FaaS solutions, driven by factors such as the rise of smartphones, a younger and more tech-savvy population, and digital transformation.
Future Forecast for Latin America Fintech as a Service Industry
Looking ahead, the Latin America fintech as a service industry is expected to rise at a CAGR of 19.3% from 2024 to 2034. Total valuation in the region is set to reach US$ 1,58,672.2 million by 2034.
Increasing digital transformation, especially in the banking sector and surging focus of leading players on lowering their operational costs are likely to push the industry. At the same time, surging use of smartphones and high demand for online banking services are projected to aid growth.
Principal Consultant
In this section, the Latin America FaaS industry is compared to the AI in fintech industry and the banking-as-a-service platform sector based on growth factors and key trends. This will help businesses to get a better understanding of the overall industry scenario.
Latin America Fintech as a Service Industry Analysis:
| Attributes | Latin America Fintech as a Service Industry Forecast |
|---|---|
| CAGR (2024 to 2034) | 19.3% |
| Growth Factor | Digital transformation in banking sector is expected to boost growth of the fintech as a service industry in Latin America. |
| Key Trends in Latin America Fintech as a Service Industry | Rising adoption of mobile payment technology is a key growth shaping trend. |
Global AI in Fintech Industry Analysis:
| Attributes | Global AI in Fintech Industry Outlook |
|---|---|
| CAGR (2024 to 2034) | 16.5% |
| Growth Factor | Rising digitalization of the BFSI industry is expected to boost revenue growth. |
| Global AI in Fintech Industry Trend | Growing popularity of cloud-based fintech solutions is a key growth shaping trend. |
Global Banking-as-a-service Platform Industry Analysis:
| Attributes | Global Banking-as-a-service Platform Demand Outlook |
|---|---|
| CAGR (2024 to 2034) | 16.2% |
| Growth Factor | Rapid penetration of digital technologies in the banking sector is set to foster growth of the banking-as-a-service industry. |
| Global Banking-as-a-service Platform Industry Trends | A key growth-shaping trend is the rise of embedded finance globally. |
The section below offers insights into leading countries and their growth projections across Latin America. Mexico and Brazil are emerging as highly lucrative pockets for fintech as a service companies across Latin America.
| Country | Value-based CAGR (2024 to 2034) |
|---|---|
| Mexico | 21.7% |
| Brazil | 20.4% |
Mexico’s fintech as a service industry value is expected to total US$ 43,829.7 million by 2034, expanding at a CAGR of 21.7%. It will emerge as a highly remunerative pocket for fintech as a service vendors across Latin America.
Mexico stands out as the leader in the fintech as a service (FaaS) industry in Latin America. A growing middle class is contributing to the growing demand for flexible financial solutions in the country.
The supportive regulatory frameworks, such as the implementation of the Mexican fintech law in 2018, provide a good ecosystem for FaaS providers. Similarly, rise in strategic collaboration between traditional financial institutions and fintech startups in Mexico accelerates FaaS integration, contributing to industry growth.
The fintech as a service industry in Brazil is poised to register a robust CAGR of 20.4% throughout the forecast period. Total valuation in the country will likely reach US$ 59,505.1 million by 2034.
Brazil is witnessing high demand for fintech as a service (FaaS) due to multiple factors. These include expanding fintech ecosystem, rise of open banking and API, favorable government initiatives, and ongoing digital transformation in the financial services industry.
The rise of smartphones and internet connectivity is also accelerating the adoption of fintech services in Brazil. Similarly, Brazil’s central bank’s initiatives to promote open banking and fintech innovation have improved the environment for the growth of FaaS industry.
Brazil’s fintech sector also thrives on collaborative efforts between traditional financial institutions and innovative startups. Strategic partnerships and investments from established players have led to the development of FaaS solutions for integration across financial services.
The country’s vibrant startup ecosystem, coupled with a growing entrepreneurial spirit, has led to a plethora of fintechs offering a range of services. This, in turn, is further solidifying Brazil’s position as a key player in fintech-as-services industry.
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The table section offers deeper insights into leading segments in the Latin America fintech as a service industry. This information will likely help fintech as a service vendors to frame invest in popular technologies and offer demanding services.
Growth Outlook by Service Type
| Service Type | Value CAGR |
|---|---|
| Banking-as-a-Service | 19.9% |
| Payment Processing | 21.8% |
| Wealth Management and Investment Services | 14.0% |
| Insurance Technology (Insurtech) | 15.9% |
| Financial Analytics | 16.6% |
| Lending Platforms | 20.6% |
| Robo-advisory Services | 12.4% |
| Risk Assessment and Fraud Prevention | 18.5% |
| Others Service Type | 10.8% |
As per the latest analysis, demand for payment processing services is set to grow at a staggering CAGR of 21.8% during the forecast period. This can be attributed to growing popularity of digital payments across Latin America.
Payment processing stands out as a key driver for the growth of the fintech as a service (FaaS) industry. Payment processing as a service is becoming popular due to increasing demand for advanced and efficient payment processing solutions in Latin America.
Fintech companies are key to facilitating secure, seamless, and real-time transactions to meet the evolving needs of industry and customers. Further, the trend toward financial inclusion has driven the adoption of digital payment solutions, especially in emerging regions.
Providers focused on fintech payment processing as a service are taking advantage of this trend by providing solutions to cater to the unbanked and underbanked population. The versatility and scalability of payment processing solutions are also attractive to all sizes of businesses, from small start-ups to large enterprises.
The e-commerce boom in Latin America is creating high demand for seamless and secure gateways. This is prompting FaaS providers to provide integrated payment solutions, thereby contributing to segment growth.
Introduction of novel payment technologies, such as contactless payments and mobile wallets, will further boost the target segment. Hence, a robust CAGR has been predicted for the payment processing service category.
Growth Outlook by Deployment
| Deployment | Value CAGR |
|---|---|
| Public Cloud | 20.2% |
| Private Cloud | 16.9% |
| Hybrid Cloud | 19.0% |
Based on deployment, the public cloud segment is estimated to record a higher CAGR of 20.2% during the assessment period. It will likely total a valuation of US$ 16,413.5 million in 2024, holding an industry share of 60.9%.
Multiple factors are behind the rise of public cloud segment in Latin America. These include the scalability and cost-effectiveness of public cloud.
Fintech companies are turning to public cloud services due to their flexibility and cost. The inherent advantages of matching the evolving needs of the financial sector contribute to the growing popularity of public cloud segment.
Public cloud enables FaaS providers to scale their infrastructure to respond to changing business and customer demands. It ensures efficient resource utilization without investing heavily in hardware or maintenance infrastructure. This scalability is especially important in fintech industry.
The public cloud provides a stable and secure environment for processing sensitive financial data. Leading cloud service providers are investing in advanced security measures, compliance certificates, and data encryption protocols to address the complex regulations that financial services must abide by.
The public cloud's accessibility and ease of integration with other technologies foster innovation and collaboration within the fintech ecosystem. FaaS companies can leverage a wide range of cloud-based services, such as artificial intelligence, machine learning, and data analytics, to enhance their offerings and deliver sophisticated solutions to financial institutions and other end users.
Growth Outlook by Technology
| Technology | Value CAGR |
|---|---|
| AI/ML for Fintech | 22.4% |
| Blockchain Technology | 21.2% |
| BI for Fintech | 16.5% |
| APIs for Financial Data | 19.5% |
| Robotic Process Automation (RPA) | 18.3% |
| Finance Cloud Technology | 15.7% |
| Other Technology | 13.8% |
With adoption of advanced technologies picking up pace, the AI/ML for fintech segment is set to exhibit a CAGR of 22.4% over the forecast period. This is attributable to multiple advantages of using these novel technologies in the financial sectors and other industries.
The transformational impact of Artificial Intelligence (AI) and Machine Learning (ML) technologies in financial services is growing rapidly. Fintech companies are increasingly using AI/ML to improve decision-making processes, automate routine transactions, and provide more personalized and predictive financial services.
AI/ML technology enables data analytics as it goes deeper. It allows FaaS providers to gain valuable insights from more financial data and improve risk analytics, fraud detection, and more accurate customer profiling.
AI/ML technology plays an important role in providing innovative and transformative financial solutions. Providing AI/ML as a service enables fintech companies to develop and deploy sophisticated algorithms that learn and constantly change, adapting to changing conditions and consumer behavior. These changes are especially important in the fast-paced dynamics of the financial industry.
The demand for AI-powered financial solutions is increasing as financial institutions seek to streamline operations, reduce costs, and enhance customer experience. AI/ML for fintech is used in a variety of areas, including credit scoring , robo-advisors, chatbots, and fraud solutions, among others.
As the financial industry embraces digital transformation and data-driven decision making, the AI/ML segment of fintechs is well positioned to maintain its rapid growth trajectory. It will play a key role in boosting overall performance of the target industry.
Growth Outlook by End-user
| End-user | Value CAGR |
|---|---|
| Banks and Financial Institutions | 20.2% |
| Insurance Companies | 17.1% |
| Investment Firms | 18.9% |
| Regulatory Agencies | 15.7% |
| Enterprises | 21.2% |
As per the latest report, banks and financial institutions are expected to remain leading end users of fintech services during the forecast period. The target segment will likely register a CAGR of 20.2%, generating revenue worth US$ 57,508 million by 2034.
Banks and financial institutions (FIs) dominate the fintech as a service (FaaS) industry due to several key factors associated with their unique position in the financial system. As these institutions have a large customer base, establishing trust and enabling more financial information will enhance their digital capabilities, streamline operations, and deliver innovative financial solutions to clients.
The stringent compliance requirements in the financial sector make it difficult for new entrants, leaving established banks with the resources and experience to navigate complex regulatory frameworks. As a result, banks and financial institutions have a growing demand for fintech services.
To compete in a rapidly growing economic environment, banks and financial institutions are increasingly adopting fintech solutions. Similarly, rising popularity of digital banking and cashless transactions is prompting banks and financial institutions to opt for fintech services
Key fintech as a service providers are constantly evolving and adapting to the dynamic industry landscape by employing various strategies to remain competitive and meet the evolving needs of their clients.
Key Developments in the Latin America Fintech as a Service Industry
The Latin America industry value is set to total US$ 26,946.1 million in 2024.
Demand in Latin America is expected to rise at 19.3% CAGR through 2034.
The Latin America industry size is projected to reach US$ 1,58,672.2 million by 2034.
AI/ML for fintech segment held a dominant value share of 21.5% in 2023.
Exhibiting a 20.2% CAGR, banks & financial institutions remain leading end-users.
Mastercard, Visa, PayPal, Block Inc. (Square), and PayClip Inc.
Rise of digital banking is a key trend in Latin America.
There are thousands of fintech companies in Latin America.
1. Executive Summary
1.1. Industry Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Analysis and Recommendations
2. Industry Overview
2.1. Industry Coverage / Taxonomy
2.2. Industry Definition / Scope / Limitations
3. Type of Pricing Model
3.1. Subscription-based Pricing
3.2. Tier-based Pricing
4. Industry Background
4.1. Macro-Economic Factors
4.2. Forecast Factors - Relevance & Impact
4.3. Value Chain
4.4. COVID-19 Crisis – Impact Assessment
4.4.1. Current Statistics
4.4.2. Short-Mid-Long Term Outlook
4.4.3. Likely Rebound
4.5. Industry Dynamics
4.5.1. Drivers
4.5.2. Restraints
4.5.3. Opportunity Analysis
5. Industry Demand (in Value or Size in US$ million) Analysis 2019 to 2023 and Forecast, 2024 to 2034
5.1. Historical Industry Value (US$ million) Analysis, 2019 to 2023
5.2. Current and Future Industry Value (US$ million) Projections, 2024 to 2034
5.2.1. Y-o-Y Growth Trend Analysis
5.2.2. Absolute $ Opportunity Analysis
6. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Service Type
6.1. Introduction / Key Findings
6.2. Historical Industry Size (US$ million) Analysis By Service Type, 2019 to 2023
6.3. Current and Future Industry Size (US$ million) Analysis and Forecast By Service Type, 2024 to 2034
6.3.1. Banking-as-a-Service
6.3.2. Payment Processing
6.3.3. Wealth Management and Investment Services
6.3.4. Insurance Technology (Insurtech)
6.3.5. Financial Analytics
6.3.6. Lending Platforms
6.3.7. Robo-advisory Services
6.3.8. Risk Assessment and Fraud Prevention
6.3.9. Others
6.4. Industry Attractiveness Analysis By Service Type
7. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by Deployment
7.1. Introduction / Key Findings
7.2. Historical Industry Size (US$ million) Analysis By Deployment, 2019 to 2023
7.3. Current and Future Industry Size (US$ million) Analysis and Forecast By Deployment, 2024 to 2034
7.3.1. Public Cloud
7.3.2. Private Cloud
7.3.3. Hybrid Cloud
7.4. Industry Attractiveness Analysis By Deployment
8. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Technology
8.1. Introduction / Key Findings
8.2. Historical Industry Size (US$ million) Analysis By Technology, 2019 to 2023
8.3. Current and Future Industry Size (US$ million) Analysis and Forecast By Technology, 2024 to 2034
8.3.1. AI/ML for Fintech
8.3.2. Blockchain Technology
8.3.3. BI for Fintech
8.3.4. APIs for Financial Data
8.3.5. Robotic Process Automation (RPA)
8.3.6. Finance Cloud Technology
8.3.7. Others
8.4. Industry Attractiveness Analysis By Technology
9. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By End User
9.1. Introduction / Key Findings
9.2. Historical Industry Size (US$ million) Analysis By End User, 2019 to 2023
9.3. Current and Future Industry Size (US$ million) Analysis and Forecast By End User, 2024 to 2034
9.3.1. Banks and Financial Institutions
9.3.2. Insurance Companies
9.3.3. Investment Firms
9.3.4. Regulatory Agencies
9.3.5. Enterprises
9.3.6. Others
9.4. Industry Attractiveness Analysis By End User
10. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by Country
10.1. Introduction
10.2. Historical Industry Size (US$ million) Analysis By Country, 2019 to 2023
10.3. Current and Future Industry Size (US$ million) Analysis and Forecast By Country, 2024 to 2034
10.3.1. Mexico
10.3.2. Brazil
10.3.3. Argentina
10.3.4. Chile
10.3.5. Peru
10.3.6. Colombia
10.3.7. Venezuela
10.3.8. Rest of
10.4. Industry Attractiveness Analysis By Country
11. Mexico Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
11.1. Introduction
11.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
11.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
11.3.1. By Service Type
11.3.2. By Deployment
11.3.3. By Technology
11.3.4. By End User
11.4. Industry Attractiveness Analysis
11.4.1. By Service Type
11.4.2. By Deployment
11.4.3. By Technology
11.4.4. By End User
12. Brazil Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
12.1. Introduction
12.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
12.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
12.3.1. By Service Type
12.3.2. By Deployment
12.3.3. By Technology
12.3.4. By End User
12.4. Industry Attractiveness Analysis
12.4.1. By Service Type
12.4.2. By Deployment
12.4.3. By Technology
12.4.4. By End User
13. Argentina Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
13.1. Introduction
13.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
13.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
13.3.1. By Service Type
13.3.2. By Deployment
13.3.3. By Technology
13.3.4. By End User
13.4. Industry Attractiveness Analysis
13.4.1. By Service Type
13.4.2. By Deployment
13.4.3. By Technology
13.4.4. By End User
14. Chile Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
14.1. Introduction
14.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
14.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
14.3.1. By Service Type
14.3.2. By Deployment
14.3.3. By Technology
14.3.4. By End User
14.4. Industry Attractiveness Analysis
14.4.1. By Service Type
14.4.2. By Deployment
14.4.3. By Technology
14.4.4. By End User
15. Peru Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
15.1. Introduction
15.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
15.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
15.3.1. By Service Type
15.3.2. By Deployment
15.3.3. By Technology
15.3.4. By End User
15.4. Industry Attractiveness Analysis
15.4.1. By Service Type
15.4.2. By Deployment
15.4.3. By Technology
15.4.4. By End User
16. Colombia Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
16.1. Introduction
16.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
16.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
16.3.1. By Service Type
16.3.2. By Deployment
16.3.3. By Technology
16.3.4. By End User
16.4. Industry Attractiveness Analysis
16.4.1. By Service Type
16.4.2. By Deployment
16.4.3. By Technology
16.4.4. By End User
17. Venezuela Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
17.1. Introduction
17.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
17.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
17.3.1. By Service Type
17.3.2. By Deployment
17.3.3. By Technology
17.3.4. By End User
17.4. Industry Attractiveness Analysis
17.4.1. By Service Type
17.4.2. By Deployment
17.4.3. By Technology
17.4.4. By End User
18. Rest of Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
18.1. Introduction
18.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
18.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
18.3.1. By Service Type
18.3.2. By Deployment
18.3.3. By Technology
18.3.4. By End User
18.4. Industry Attractiveness Analysis
18.4.1. By Service Type
18.4.2. By Deployment
18.4.3. By Technology
18.4.4. By End User
19. Industry Structure Analysis
19.1. Industry Analysis by Tier of Companies
19.2. Industry Share Analysis by Players
20. Competition Analysis
20.1. Competition Dashboard
20.2. Competition Deep Dive
20.2.1. Business Overview
20.2.2. Offering
20.2.3. Key Financials
20.2.4. Major Clients Footprint
20.2.5. Go-to-Industry Approach & Strategies
20.2.6. Recent Developments (Partnerships, Alliances, etc.)
20.3. Major Vendors
20.3.1. Mastercard
20.3.2. Visa
20.3.3. PayPal
20.3.4. Block Inc. (Square)
20.3.5. PayClip Inc.
20.3.6. Nubank
20.3.7. Moneta
20.3.8. Belvo
20.3.9. Adyen
20.3.10. RecargaPay
20.3.11. Creditas
20.3.12. Rapyd
20.3.13. Rextie
20.3.14. SlightPay
21. Assumptions and Acronyms Used
22. Research Methodology
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Fintech as a Service Industry Analysis in Latin America
