Strategy Note /
BrazilPayments fintechs: The costs and benefits of diversifying into lending
Payments fintechs have been growing rapidly and building large customer bases, but are often barely profitable
Diversification into lending activities can substantially lift revenue margins but also opens up fintechs to credit risk
Brazil’s StoneCo provides a salutary lesson; high financing costs and delinquencies overshadowing strong revenue growth
Rohit Kumar
Global Financials/Thematics @ Tellimer Research
Rahul Shah
Head of Corporate & Thematic Research @ Tellimer Research
31 August 2022
Published byTellimer Research
