Galileo Financial Technologies, a subsidiary of SoFi Technologies, Inc. (NASDAQ: SOFI), and Mastercard have announced the formation of a multi-year strategic alliance focused on accelerating digital transformation and improve access to financial opportunities for unbanked and underserved segments in Latin America and the Caribbean.
The most innovative companies in Latin American markets are developing solutions that address the unmet needs of consumers, but many are currently encountering friction in the process. Galileo and Mastercard together will enable Latin American fintechs and issuers to build and launch digital financial services using their combined capabilities and infrastructure. The companies will distribute various Mastercard products and services to support their customers.
As part of the expanded partnership, Galileo becomes a preferred technology partner and fast issuer processor within the Mastercard Partner Network, Mastercard Engage, in Latin America and the Caribbean. Combining Mastercard’s developer-first approach with Galileo’s platform and both companies’ set of APIs enabling issuers, banks, eCommerce providers and fintech developers to create and launch innovative solutions across the region at a fast pace.
Latin America is, and will continue to be, one of the most dynamic regions for financial innovation for both fintech and traditional players. Internet and smartphone penetration in the region has reached nearly 70 per cent as of early 2021 and continues to grow, according to the GSMA.
“Financial inclusion, at its core, is based on digital inclusion. With high levels of digital adoption, Latin American consumers are largely poised to adopt solutions that reduce their reliance on cash,” says Tory Jackson, director of development and strategy commercial for Latin America of Galileo. “Our alliance with Mastercard reinforces our strategic commitment to provide innovative, world-class digital financial services and modernise payment solutions for consumers in Latin America.”
With more than 20 years of experience, Galileo has reinvented the fintech ecosystem, achieving approximately 100 million end-user accounts. Galileo serves customers who offer digital financial services, ranging from debit, credit, and business-to-business (B2B) payments to remittances, BNPL (buy now, pay later), cryptocurrencies, and other emerging payment methods.
Small and medium-sized enterprises (SMEs) are also critical to the evolution of the digital payments ecosystem in the Latin American region. Galileo and Mastercard will actively support the creation of viable alternatives for the modernisation of payment services. Both companies, in collaboration, aim to foster the evolution of the digital ecosystem, empowering SMEs of all kinds to achieve their digital transformation.
“Through the Mastercard Developers portfolio, Mastercard is helping more than 2,000 fintech innovators in the region achieve scale, and the addition of Galileo as a preferred technology partner will help further expand access to financial services to more people,” said Thiago Dias, vice president of fintech and enablers, Mastercard Latin America and the Caribbean. “Mastercard has passed the milestone of 100 million digital cards derived from its alliances with 100 fintech companies in Latin America and the Caribbean.”
