Open banking has gained significant traction in mature economies, where consumers and businesses are familiar with digital transactions and open to new approaches that can save time and money. However, the adoption of open banking remains slow, even in advanced markets. Some believe that the real potential for these new services lies in developing economies.
Key Takeaway
Prometeo, a startup focused on open banking in Latin America, has secured
3 million in funding from major investors such as PayPal, Samsung, and more. The company’s approach to tackling the region as a single market and using a single API has garnered significant interest and partnerships, indicating the potential for open banking services in the region.
Prometeo’s Funding and Growth
Uruguayan startup Prometeo, which focuses on enabling open banking across Latin America, has raised $13 million in funding to expand its business. The company, founded in 2018, has seen substantial growth with relatively lean funding. Prior to this round, it had raised approximately $6 million. Prometeo’s approach to growth is untraditional, as it is tackling Latin America as a single market and using a single API to do so.
Expansion and Challenges
Under its single API, Prometeo has activated 350 channels across 283 financial institutions in 10 countries, with Brazil and Mexico being its biggest markets. The company’s most popular services include account-to-account payments, account validation, and cash management for businesses. While the company plans to bring on more users, add more services, and expand to further geographies, it faces significant challenges in a region where financial services are still behind more mature markets.
Investors and Partnerships
The recent funding round for Prometeo was led by Antler Elevate, with participation from PayPal Ventures, Samsung Next, DN Capital, Cometa, and Magma Partners. While PayPal and Samsung Next are not currently working with Prometeo on services, their investment signals their intentions and interests in the region. Prometeo has also garnered interest from major players in banking in the region, including partners such as Citi, Santander, J.P. Morgan, and Vtex.
