Welcome to Fintech Pulse, your daily dose of analysis and opinion on the most impactful happenings in financial technology. Today—May 7, 2025—we dive into five pivotal stories: the cashless revolution in Latin America; AvidXchange’s pending acquisition by TPG and Corpay; the launch of Zar, a new stablecoin platform from former SadaPay CEO Brandon Timinsky; insights from FinTech LIVE London by David Palmer of Pairpoint; and WEX’s upcoming presentation at Barclays’ Emerging Payments & Fintech Forum.
1. Cashless Wave Sweeps Latin America
Latin America’s digital payments market is surging. In just ten years, in-store cash usage has plunged from 67% to 25%, while eCommerce digital payments grew from 14% to 48% of online purchase value in 2024—and are forecast to hit 66% by 2030.
This tectonic shift is driven by:
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Mobile wallets & real-time rails: Brazil’s Pix processed 64 billion instant transactions in 2024 alone—a 53% year-over-year jump—and is on track to eclipse credit cards in eCommerce by year’s end.
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Regulatory support: Central banks across Argentina, Colombia, and Mexico are fostering interoperability and innovation, giving non-bank players room to build full ecosystems.
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Bank response: Incumbents are scrambling to launch their own instant-pay apps or forge partnerships, but face margin erosion as account-to-account and QR-based transactions eat into interchange fees.
Op-Ed Insight: Latin America has leapfrogged traditional banking infrastructure, illustrating that a supportive regulatory palette plus high mobile penetration can override legacy systems. For global issuers and processors, the lesson is clear: real-time, mobile-first payments are table stakes in emerging markets.
Source: PYMNTS
2. AvidXchange to Go Private in $2.2 B Deal
Charlotte-based accounts-payable automation leader AvidXchange (NASDAQ: AVDX) agreed to be acquired by private equity firm TPG alongside corporate-payments specialist Corpay for $2.2 billion, at $10 per share in cash—a 22% premium over its May 6 closing price.
Highlights:
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Strategic rationale: AvidXchange automates AP workflows for 8,500+ mid-market firms, processing millions in invoices and payments annually. TPG’s capital and Corpay’s payments network aim to fuel further growth.
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Financials: The deal values AvidXchange at a 16% premium to its 90-day VWAP, underscoring investor appetite for B2B fintech consolidation.
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Timeline: Subject to stockholder and regulatory approvals, the transaction is expected to close in Q4 2025, after which AvidXchange will operate privately to accelerate product innovation.
Op-Ed Insight: This transaction underlines a broader trend: AP automation platforms are becoming must-have for enterprises seeking efficiency gains. With strategic backers, AvidXchange can now leverage Corpay’s global card and cross-border rail capabilities to weave deeper into corporate finance stacks.
Source: GlobeNewswire
3. Ex-Sadapay CEO Launches Stablecoin Platform “Zar”
Brandon Timinsky, founder and former CEO of Pakistan’s digital wallet giant SadaPay, unveiled Zar, a stablecoin platform designed for high-inflation markets, with $7 million in seed funding from Dragonfly Capital, VanEck, Andreessen Horowitz, and Coinbase Ventures.
Key points:
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Mission: Zar aims to “accelerate stablecoin access for over a billion people” where inflation erodes purchasing power, leveraging 28 million mobile-money agents handling $638 billion in OTC cash transactions worldwide.
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Structure: By tokenizing fiat, Zar promises low-fee, instant settlements 24/7—crucial for remittances and retail in emerging economies.
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Outlook: With regulatory clarity improving, Zar’s play is to partner with local payment networks and wallets, potentially displacing expensive money-transfer corridors.
Op-Ed Insight: Stablecoins are maturing beyond speculation into genuine utility in frontier markets. Timinsky’s agent-network approach cleverly bridges digital rails with cash-centric populations, offering a template for stablecoin adoption at scale.
Source: FinTech Futures
4. “Next-Gen AI Adoption Needs Regulation,” Says Pairpoint’s David Palmer
At FinTech LIVE London 2024, David Palmer, CPO of Pairpoint by Vodafone, emphasized that the real acceleration of AI in finance hinges on robust regulatory frameworks and data-enablement strategies.
His top takeaways:
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Regulator-industry sandboxing: The UK’s FCA AI Lab model shows how safe test environments can fast-track innovation while protecting market integrity.
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API agility vs. infrastructure might: Challenger banks excel in modular API integrations, but incumbent banks’ scale and compliance infrastructure may give them the edge in large-scale AI deployments.
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Data quality as currency: “Clean, accessible data” is the foundation for any AI model—firms investing in reference-data management are best poised to extract AI’s value.
Op-Ed Insight: Palmer’s view spotlights a pivotal fintech paradox: true innovation demands both nimbleness and trust. Those who can marry agile tech stacks with enterprise-grade controls will lead the next wave of AI-powered services.
Source: FinTech Magazine (via LinkedIn)
5. WEX Preps for Barclays Emerging Payments & Fintech Forum
Global commerce platform WEX (NYSE: WEX) announced CFO Jagtar Narula will present at the Barclays 15th Annual Emerging Payments & Fintech Forum on May 20, 2025 at 12:40 p.m.
What to expect:
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Ecosystem focus: WEX will showcase its embedded, data-driven solutions simplifying corporate payments, benefits, and mobility.
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Strategic themes: How specialized payments networks can unlock efficiencies in fleet management, employee spend, and healthcare consumer payments.
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Investor appeal: With diversified revenue streams—from public-charging EV payments to cross-border remittance rails—WEX aims to highlight resilience amid market fluctuations.
Op-Ed Insight: As payments become increasingly specialized, WEX’s forum presence signals that verticalized financial rails—tailored for mobility, healthcare, or corporate travel—are where growth and investor interest converge.
Source: Business Wire
