Fintech is growing in Nicaragua amid an economy dependent on…

Bloomberg linea – nicaragua’s tech corporate community is still in its infancy that international standards such as Global startup ecosystem index (GSEI) not yet determined.

By 2021, There were more than 11,000 registered fintech companies in the world; Out of this grand total, a study by the Inter-American Development Bank (IDB), IDB Invest and Finnovista revealed that 2,500 Latin Americans and 120 work in Central America, but only 3 are registered in Nicaragua.

By December 2022, this number has increased to 15 fintechsAccording to the portal “Plata con Plática”.

In the midst of the complex context that Nicaragua is going through, These companies pave the way for innovation in a country with Huge potential for sectors that need easy, fast and very secure cash transfers, but mainly in the family remittance sector.

last year, Nicaragua recorded a new record of $3,224.9 million in remittances, 50.2% more than in 2021resulting in these remittances contributing nearly 20% of GDP, according to the World Bank.

In the first two months of 2023, Nicaraguans received $647.6 million in family remittances63.2% more than in the same period in 2022, according to the Central Bank of Nicaragua (BCN).

Remittances from the US have recorded a 92.5% annual growth and the costs of sending that money back to your home country remain significant.

“Central Americans who send money home to support their families face exorbitant fees for each transfer,” he said. Andreas Carlos Freund, Tomoni Co-Foundera startup that basically acts as a bank account in the US to allow you to send money to Central America for free.

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According to Nicaraguans who grew up in San Francisco, California, This startup hopes to serve the “80% of Central Americans who do not have access to banking services And 50% of Central American immigrants in the US do not have access to banking solutions,” he explained in a post on the networks.

Fintech is licensed in Nicaragua

The Nicaraguan authorities have also established legal mechanisms for Regulating financial technology providers of payment services and virtual assets.

The Central Bank of Nicaragua has approved six fintech licenses. Two of the licenses are from Credomatic and Ficohsa banks, while The remaining four are non-banking companies (fintech) that is allowed to operate as a Payment Service Provider (PSP).

Most of the BCN licensed fintechs are dedicated to payment and transfer services:

CashPakAs a non-banking financial institution, the company provides financial products and services based on electronic money, including sending and paying remittances, paying services, and others.

This company, which is part of the trading company Grupo Coen, is the first electronic money institution in Nicaragua with a presence in the rest of Central America and Mexico.

Center Its authorized services are digital wallet, electronic money, buying and selling of currencies and exchange them electronically and money transfer.

In February, fintech signed a collaborative alliance with Korean company DAWIN to launch the first Blockchain Academy in the Central America region.

Global point of sale devices Provides a service that allows you to accept payments in person remotely.

dLocala company born in Uruguay with an international presence providing online payment gateway services in Nicaragua.

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An application that seeks to simplify logistics

TIZO is also operating in Nicaragua, an app founded by Adriana González, which aims to Changing the way of buying and sellingwhich also centralizes the logistics offering available to offer flexible rates and times according to the necessity of delivery.

mobile application It allows companies, entrepreneurs and individuals to find shipping companies in Nicaragua in one placegiving the user the ability to choose the best option according to his needs.

According to the executivesThis startup is more than just a web portal for quoting, comparing and making shipmentsbut to speed up sales and purchases throughout the national territory, which also provides users and companies to monitor their product journey in real time.

We want people to have the power to choose what they buy“How much to pay for it, when to deliver your package, and most importantly how to pay for it,” Gonzalez said.

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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