Prometeo raises $13M from PayPal, Samsung and more to bring open banking to Latin America

Prometeo raises $13M from PayPal, Samsung and more to bring open banking to Latin America

technology By Jan 12, 2024 No Comments

Prometeo Raises $13M from PayPal, Samsung and More to Bring Open banking to Latin America

Open banking, where traditional banks share data and build new services via APIs, is gaining traction in mature economies. The majority of consumers and businesses in these markets are familiar with digital transactions and open to embracing new approaches that save time and money.

Introduction to prometeo‘s Funding and Expansion

Prometeo, a startup based in Uruguay, is dedicated to enabling open banking across Latin America. The company has secured $13 million in funding from major players such as PayPal Ventures, Samsung Next, DN Capital, Cometa, and Magma Partners. This financial backing reflects a strong belief in the potential of open banking in the Latin American region.

Unconventional Growth and Market Approach

Despite being a relatively young company, prometeo has taken a unique path to growth. Instead of focusing on national rollouts, the startup is targeting Latin America as a single market, addressing the extensive fragmentation within the region. The company’s unified API has already activated 350 channels across 283 financial institutions in 10 countries.

Services and Market Expansion

Prometeo’s most popular services include account-to-account payments, account validation, and cash management for businesses. The startup has witnessed substantial revenue growth, with a tenfold increase over the last two years, indicating the demand for open banking solutions in Latin America. Additionally, Brazil and Mexico, the two largest fintech markets in the region, stand out as key target areas for Prometeo.

Challenges and Opportunities in the Latin American Market

Although Latin America lags behind mature markets in terms of financial services and digital banking adoption, it presents significant opportunities for open banking initiatives. The region’s lower bank account penetration and higher reliance on cash transactions create an untapped market for innovative financial solutions.

Investor Interest and Significance of Partnerships

Notable companies such as PayPal Ventures and Samsung Next have shown a keen interest in investing in Prometeo. Their support signifies the potential for open banking to reshape the landscape of financial services in Latin America. By engaging with key players in the region’s banking and tech industries, Prometeo is laying the foundation for impactful partnerships.

Implications for Major Players in Latin American Finance

This strategic funding round and the widespread interest in Prometeo from industry leaders like Citi, Santander, and J.P. Morgan highlight the startup’s potential influence on the local financial landscape. Antler Elevate, a firm deeply rooted in Asia Pacific, led the round, indicating a global perspective on the transformative power of open banking.

Conclusion: Empowering Businesses in Latin America

Prometeo’s single API approach provides banks and financial institutions with seamless access to payments and data across Latin America. By leveraging advanced technology and fostering strong partnerships, the company is poised to elevate businesses to new heights of success in the evolving financial ecosystem.

Source: techcrunch

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