Banking-as-a-service provider Galileo Financial Technologies recently announced an expansion into new regional markets, driven by an alliance with Mastercard that will allow it to offer new digital banking services in five South American economies.
The company, which operates extensively in the Mexican market, expanded into Colombia last year as part of a broader strategy in Latin America. Now, it said it is also providing services in Argentina, Brazil, Chile, Perú and Uruguay due to this new partnership with Mastercard.
The company targets issuers, financial institutions and fintechs as clients, marketing open APIs that enable payment processing capabilities such as virtual and physical credit and debit cards.
Rising demand
“As the demand for digital payment solutions in Latin America continues to grow, Mastercard’s rigorous certification process promises to deliver short and long-term benefits to local customers,” Kiki del Valle, Mastercard’s Vice President for Market Development in Latin America and the Caribbean, said in a press release. “We are proud to engrain Galileo further into the Latin American ecosystem to make it easier and more convenient for financial institutions, fintechs and non-financial brands to build, launch and grow their innovations.”
The region has experienced sharp growth in digital payments in the past few years as part of a post-COVID secular trend in Latin America of digitization. Millions have turned to online banking for the first time since, leading to fintechs and gaining critical ground in the region.
As a result, companies that offer banking capabilities have been in high demand in recent years. Both neobanks, fintechs and non-financial companies have been eager to grow a solid digital banking arm.
Galileo and APIs
For Tory Jackson, Galileo’s LatAm Strategy and Development Director, a one-stop-shop offer is critical for driving adoption. SoFi Technologies, an American personal finance company and online bank based in San Francisco, owns the firm.
“Existing players and new entrants are looking for a single suite of APIs that enable a single integration to enable payments,” he was quoted as saying in the press release. “With this certification, businesses across these five new markets will receive the support for modernizing payment services with flexible, faster and frictionless development times.”