Zimpler expands its operations to Latin America

Thursday 17 November 2022 12:21 CET | News

Zimpler, a Sweden-based fintech, has announced that it will expand its operations to Latin America.

The company has established its Latin America headquarters in São Paulo, catering to the growing local and regional markets. Zimpler plans to introduce their instant payments solution in the country later in 2022 and are already planning their next market expansion.

The company – which currently operates in eight European countries with offices in Sweden and Malta – expands beyond Europe for the first time. A recent study conducted by Zimpler showed that nearly half of all online consumers (47%) in Brazil reported giving up on an online purchase, due to issues with the ecommerce payment processes. This is a gap in the Brazilian market that Zimpler fills, thanks to their account-to-account payments.

Zimpler’s instant payment solution for the Brazilian market will be based on the Brazilian central bank’s PIX technology. The amalgamation of PIX and Zimpler’s solutions will simplify the transaction chain by optimising the end-user journey. Zimpler will enable instant settlement towards the retailers, thus reducing the reliance on cards and associated transaction fees.

Fintechs in Latin America

The fintech ecosystem in Latin America and the Caribbean has experienced rapid growth and established itself as a key actor to meet the demands and needs of financial consumers in the region. The number of fintech platforms reached 2,482 in 2021, a growth of 112% from 2018 to 2021. Nearly a quarter of fintech platforms globally are Latin American and Caribbean.

Zimpler, a Sweden-based fintech, has announced that it will expand its operations to Latin America.

Poor financial services, huge unbanked population, and high mobile app usage create the perfect environment for fintech adoption. Many new financial services users in Latin America are fintech natives. Teens and young adults represent 52% of the entire population, who are being rapidly onboarded onto fintech platforms, many having never used traditional banking.

Recent trends highlight how the Latin American ecosystem is expanding its role in the broader innovation economy. The region still faces the typical challenges of an emerging market economy, such as higher political, operational, logistical and security risks. But with abundant capital, growing interest from international investors, proven scale with newly minted unicorns and recent successes, the future is bright for the Latin American venture ecosystem.

Zimpler in other news

In March 2022, Zimpler has secured equity funding from Nordstjernan Growth, enabling the fintech to further drive its growth journey and boost its customer base. The startup has also announced, at that time, that funding will be invested in developing new customer verticals and expanding its geographical network, both in Scandinavia and worldwide.

A few months later, in July 2022, Zimpler has expanded to Norway. Following Sweden, Finland, Germany, Estonia, The Netherlands, Latvia, and Lithuania, Norway was becoming the eighth market to offer Zimpler’s account-to-account payments solutions.

The first merchant in Norway to go live using Zimpler was Scandinavian Travel Group, which is currently integrated with Zimpler in Sweden and Finland, through Vitec Travelize. Following this launch, Zimpler will continue to focus its efforts on expanding in the Norwegian market, especially in segments such as travel, ecommerce, and financial service. Zimpler offers wide bank coverage in Norway, and customers will be identified through their own verification system called BankID.

To find out more about Zimpler, check their profile in our company database.

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Keywords: fintech, expansion, instant payments, ecommerce, account-to-account payment
Categories: Banking & Fintech
Companies: Zimpler
Countries: Latin America
This article is part of category

Banking & Fintech


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