The state of São Paulo concentrates more than half of all Brazilian fintech startups. Following this trend, over 70% of all fintech startups in Brazil originated in this state's capital, the city of São Paulo, while less than ten percent are based in the city of Rio de Janeiro. Brazilian fintechs also have clear inclinations when it comes to their business segments. The two largest fintech sectors in Brazil are "payments and remittances" as well as "enterprise financial management". Both of these segments form almost 50% of all fintech startups in Brazil.
Not surprisingly, seeing the considerable growth of the fintech sector in the country, 40% of Brazilians have started to use these newly available financial services. The fintech adoption rate is expected to almost double in the future. Nevertheless, as a developing nation, the financial industry in Brazil still faces difficulties: for instance, it was estimated that less than two thirds of Brazilians had access to a bank account in 2017, and even fewer had access to a mobile money account. Fortunately so, the share of people with bank accounts has been on a climb since 2011.
PagSeguro is one of the largest fintech companies in Brazil as of 2018 in terms of number of customers, with about two and a half million users. The company's client base has allowed it to grow since 2006, year in which it started to operate, recently reaching a total assets value of over four billion Brazilian reals. Likewise, this company's profits have risen exponentially in recent years, rising up to almost 500 million Brazilian reals in 2017 from just around 130 million Brazilian reals a year earlier. Most of PagSeguro's net revenue comes from transaction activities and other services, while sales accounts for the other major part of their income.