Zimpler, which claims to be a leading fintech company born in Sweden, announced that it will expand its operations to Latin America.
The company has “established its LatAm headquarters in São Paulo, catering to the growing local and regional markets.” Zimpler plans “to introduce their instant payments solution in the country later this year and are already planning their next market expansion.”
The company – which currently operates in eight European countries with offices in Sweden and Malta – “expands beyond Europe for the first time.” A recent study conducted by Zimpler showed “that nearly half of all online consumers (47%) in Brazil reported giving up on an online purchase, due to issues with the e-commerce payment processes.” This is “a gap in the Brazilian market that Zimpler fills, thanks to their seamless and secure account-to-account payments.”
Zimpler’s instant payment solution for the Brazilian market “will be based on the Brazilian central bank’s PIX technology.” The amalgamation of PIX and Zimpler’s solutions “will radically streamline the transaction chain by optimizing the end-user journey.” Zimpler will enable instant settlement “towards the retailers, thus reducing the reliance on cards and associated transaction fees.”
Johan Strand, CEO of Zimpler, said:
“Zimpler’s ambition is to shape Open Banking in Latin America, and I am glad to finally be able to announce that we’re taking the first step towards that by establishing our LatAm headquarters in São Paulo. I believe that with our products – and the advantages they have over the current solutions available – we can start transforming the market.
“Our study shows that in the first half of 2022, the cost of failed online transactions in Brazil was R$1.3 billion – potentially more. However, the real cost for retailers is individuals who are less likely to return to e-commerce sites following a bad experience. Any friction in online payments systems not only adds to retailers’ costs but also reduces their revenues.”
Raoul Mehta, General Manager Latin America at Zimpler, said:
“The pace of e-commerce adoption has been rapid in Latin America, particularly in Brazil, thanks to the Brazilian central bank’s digital PIX initiative. However, there were lingering issues around security, accuracy and speed that Zimpler’s technology has solved, providing consumers and retailers confidence when transacting online. We’re looking forward to collaborating with local merchants and industry players as we continue to grow, helping them solve payments-related issues.”
The survey was “conducted by Toluna lnsights polling a nationally representative sample of 513 Brazilian adults between 3 November and 4 November 2022.” The question “asked during the survey was: What was the value of the purchase you abandoned this year due to payment issues?”
47% of the sample “had abandoned a purchase.” Researchers calculated this “as 47% of the total 6.2 million Brazilians who bought online this year.” From this, they were “able to estimate the total value of losses in the first half of this year.”
As covered, Zimpler is a Swedish next-generation fintech company, “providing faster, easier and more secure transactions – without the need for cards.”
With offices in Sweden, Malta and Brazil, Zimpler “specialises in account-to-account payments and their products are currently live in eight countries.” With transaction volumes vastly increasing every year, “they’re rapidly expanding across Europe, through Latin America and with the sight set on the global stage.” Zimpler is on “a mission to be the universal way to pay and get paid.”