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Financial Services

The company said its premium base will help it withstand a potential economic slowdown or other macroeconomic concerns

The deal, which also includes FIS’s purchase of Global Payment’s issuing business, redraws lines that had previously been blurring

This could help the bank strengthen its ties with SMB clients and boost customer acquisition.

Over a third of adults in the region don’t have a bank account. Only the Middle East and Africa has a larger proportion of unbanked consumers, per 2021 World Bank data analyzed by BCG. And the unbanked population is unevenly distributed: Just 59% of low-income consumers and 40% of rural inhabitants in Latin America have access to a banking account, per a January 2023 Mastercard and Americas Market Intelligence (AMI) survey.

Consumers’ relatively stable financial footing could be undercut by trade war volatility. Already-tight lending standards could lead to a double-whammy for issuers.

They’re already skeptical of big financial players and would rather keep their data under lock and key.

Most consumers aren’t using BNPL frequently enough to make it cost effective