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, over two thirds of Brazilians have started to use these newly available financial services. The fintech adoption rate saw a 60% increase between 2017 and 2019. 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, 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.
Ebanx, Nubank, GuiaBolso and PagSeguro are some of the leading fintech companies in Brazil as of 2019 in terms of number of customers. PagSeguro and Nubank, for example, are among the Brazilian startups that have been valued at more than one billion U.S. dollars, being labelled as "unicorn" companies. In the case of PagSeguro, 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 11.4 billion Brazilian reals. On the other hand, Nubank owns total assets for nearly 10.5 billion Brazilian reals and has been able to attract the largest volume of investments in comparison to other startups in the first half of 2019.