Region/Countries: Central and South America and the Caribbean, Peru Industry: Other Date: August 2019

Why this is important to Wisconsin businesses: The sector is seeing strong growth in companies that buy and sell dollars without the risk of theft.

Peru is witnessing growth in its financial technology (fintech) sector, with up to 30 players in the market, most of them focused on buying and selling of dollars online (such as Rextie, Kambista, Billex and others). Companies in this segment are experiencing strong growth because they handle the buying and selling of dollars without the risk of theft. Fintech companies are regulated by the Superintendence of Banking and Insurance of Peru (SBS), which reports on companies that have acted poorly in the interest of their clients. Still, fintech is a relatively new industry in the country; currently there are more than 130 fintech companies operating in Peru, and the number is expected to double by 2021. New players from abroad are also entering the market, especially in the lending sector, which is expected to grow with an estimated $903 billion financing gap for small and midsize enterprises (SMEs) in Latin America. This is a promising market for companies that offer SMEs more competitive rates and repayment terms than incumbent lenders, and more tie-ups are expected on the horizon. For example, BBVA Peru recently teamed up with YellowPepper, a Miami-based fintech company, to target business-to-business, peer-to-peer and shopping payments.