In the US, most people gloss over payment processing because almost everyone has a credit card, Paypal account, or another simple way to pay. Developers use Stripe and can process in seconds. For consumers, Amazon even created one-click purchasing for some customers and physical buttons that automatically reorder your favorite products.
In China, paying is even easier; almost everyone uses Wechat or Alipay to scan QR codes and pay for everything automatically without ever taking out their wallet.
Startups have filled almost every niche in the payments industry, providing solutions for any vendor. Need to pay someone for something you bought in an online shop? PayPal can help. Setting up online payments for your business? Try Stripe. Want to compensate your roommate for your half of the gas bill? Venmo can help you do that.
We tend to take these solutions, as well as more traditional payment systems such as credit cards, for granted in the US. Only 6.5% of households in the US don’t have a bank account, although 18.7% of households are considered underbanked. If someone in the US wants to sign up for a Netflix account or buy a t-shirt online, they enter their credit or debit card information, and that’s it.
In Latin America, completing an online transaction is not so simple.
Continue reading “An Overview of Payment Solutions in Latin America”
Since we closed our second fund in January to invest in fintech/insurancetech companies in Latin America and US companies with Latin American tech and sales teams, the entrepreneurs we support have been busy. And so have we. Here’s a roundup of some of the most interesting things that have happened in the first half of 2018.
We’ve invested in 8 companies out of Magma II since January. Here are three that are public. We’ll be announcing more of our investments in the next month.
CryptoMarket – CryptoMarket is a Chilean fintech company that operates cryptocurrency exchanges in Chile, Brazil, Argentina and Europe, with plans to open Mexico and Colombia this year. Magma coinvested with Consensys, the fund created by the cofounder of Ethereum in a $600k round.
BrainHi – Puerto Rico based Brainhi helps doctors and dentists book more appointments using chat bots. They’re the first Puerto Rican company to be accepted into YCombinator. I met them during a visit to Parallel18 in Q1.
Workep – Medellin and San Francisco based Workep is a project management tool built onto of G-Suite. I’ve know Carlos Eduardo Alvarez since meeting him at a BBQ in 2015 in Medellin and have been following since then. We reconnected at Parallel18 this year and invested recently.
Continue reading “Magma Partners First Half 2018 Update”