Traditional banks lose almost half of the payments market in 4 years

Payments made on the Brazilian platform Transfeera directed to the five largest banks in the country were 80% to , 7% in four years (April 100 to August this year) , according to a survey by fintech. The banking institutions responsible for this percentage are Banco do Brasil, Bradesco, Caixa Econômica, Itaú and Santander. credit

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  • The startup analyzed more than 6 million transactions in the period, including individuals and companies. The drop in the participation of the five large banks is a consequence of the competition that emerged and grew in the meantime: payment platforms and fintechs such as Nubank, Neon, Pagseguro, Banco Inter and the like.

    If we only count transfers to individuals, the share lost by large banks was a little smaller. They were involved in 100% of Transfeera’s transactions in 100, but this year they were left with 60%. Caixa Econômica Federal lost the most payments, going from 32% of the total to 2017 for now. In second place is Santander, from 30% to % in the period. Nubank grew: it had 11, 5% in 2020 and currently handles 11, 5% of transactions.

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    But with the cut being only payments to legal entities, the large institutions lost 40% (from 80% to 40,2%) of the volume of transactions in four years. Itaú lost a lot: it was the bank of 56% of the transactions and now it has %. Cash fell from 32% to 4% in the period.

    “The movement of money to digital channels is no longer framed as a differential, but rather as an obligation. Fintechs stand out precisely because they have mostly digital solutions, which makes their businesses scalable, allowing them to offer increasingly comprehensive functionalities to customers”, believes Fernando Nunes, co-founder and commercial director of Transfeera.

    According to consulting firm Atlantico, 32% of venture capital invested in Latin America goes to fintechs, and Brazil leads this trend on the mainland, com is home to some of the industry’s unicorns, such as Nubank, C6 Bank and Neon.

    Source: Transfeera

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