SEPTEMBER’ 19 ISSUE #1 The drivers of real change Rappi, UseGiraffe, Microsoft, Ubisoft and Carrefour: What do these companies have in common? Meet Latin America’s Trailblazers, players that are taking the region to a whole new level INTERVIEW OPINION INFOGRAPHIC Fernando Teles: Amazon fires: The explosion of The enemy is cash. from Borges’ Paradise venture capital investment Believe it or not to Dante’s Inferno in Latin America EDITORIAL The real enemy is cash FERNANDO TELES, DIRECTOR OF VISA IN BRAZIL TALKS ABOUT The time for THEIR STRONGEST WEAPON TO WIN THE CASH WAR: INNOVATION Latin America LABS is a content platform The drivers of real change is now about Latin America, focused on economics, business, READ THE STORIES OF LATIN AMERICA’S TRAILBLAZERS: technology and society. By COMPANIES THAT ARE SHAKING THINGS UP IN THE REGION providing deep and accurate content about the economic and technological landscape luricultural, diverse and expan- 10 Rappi PUSHING LATAM INTO A DIGITAL SHIFT of Latin America, both in sive, Latin America is home to P Portuguese and English, we help not only 500 million people, but entrepreneurs and the general 14 UseGiraffe MAKING CHINESE E-COMMERCE IN A BRAZILIAN WAY also to a wide number of new ventures. public understand the region’s The digital transformation has been tak- particularities. 18 Microsoft USING TECHNOLOGY TO EMPOWER PEOPLE AND BUSINESSES ing the region by storm, and these huge Masthead shifts are attracting the eyes of many sav- LABS Editorial Board 22 Ubisoft BETTING ON LATAM WITH A FRENCH DNA vy players. But it’s certainly no easy task [email protected] to understand the plural Latin America. Thiago Romariz 26 Carrefour BRINGING INNOVATION TO A TRADITIONAL SECTOR Head of PR and Content at LABS LABS - Latin America Business Stories [email protected] - is a specialized hub that makes tailored content from Latam to the world, and Fabiane Ziolla Menezes Amazon fires Editor-in-Chief of LABS tells the best stories about the region’s LABS COLUMNIST GABRIELA ANTUNES NARRATES THE DEVASTATION [email protected] businesses, economy, society and tech. DURING HER JOURNEY IN THE RAINFOREST From market to culture, this edition Anna Lima unveils the idiosyncrasies of a region full Content strategist focused on LatAm at EBANX of opportunities–yet little understood. [email protected] Culture and society Enjoy reading! Livia Perretto on the spotlight LABS TEAM Content strategist focused on LatAm at EBANX BRAZILIAN CULTURE WITH THE LATEST MOVIES AND SHOWS [email protected] Design by Leticia Mulinari. The wave of Venture Capital Cover Illustration by Felipe Mayerle. AMERICAS MARKET INTELLIGENCE SHOWS THE RISING INJECTION OF VENTURE CAPITAL IN LATAM Powered by 2 LABS COLLECTIONS LATIN AMERICA TRAILBLAZERS LABS COLLECTIONS LATIN AMERICA TRAILBLAZERS 3 LABS You already said that the evolu- lenders (B2C), payments from consumer tion of payments would not eliminate, accounts to businesses (C2B) and transfer- so soon, the card machines and, much ence of funds between businesses (B2B). less, the debit card. This also, looking The transfer can be completed any day at Latin America and Brazil, in a context of the week and at any time of the week, of unbanked individuals, informality, including weekends and holidays. Visa in and also in the optimization of existing collaboration with Cielo and the Bank of physical payment methods. Thinking Brazil have already made available such INTERVIEW of that, what will be the next payment technology through Visa Direct. solution to be adopted by Brazilians? The case of debit online is an excellent TELES According to ABECS [Brazilian ally in digital inclusion for Brazilians. With The enemy is cash. Association of Card and Services the update of our authentication protocol, Companies], the payments completed with called 3DS 2.0, the utilization of debit on a Believe it or not. credit, debit, and pre-pay cards should large scale, without a card machine, direct- grow about 16% in 2019, reaching the level ly via the app, without the need to re-in- Visa’s director in Brazil, Fernando Teles, explains how a bet on innovation of BRL 1.8 trillion. Purchases with cards troduce the password in each operation, is making the company victorious against its biggest opponent should register, in the fourth quarter of became a reality. Currently, debit went on 2019, a record participation of 40% con- to occupy an important space between cerning the volume of consumption new businesses, such as mobility, stream- BY FABIANE ZIOLLA MENEZES of Brazilian families. ing, delivery services, among others. This strong increase follows a process of digitization of payments, in which LABS What is the adherence of the N or Mastercard, nor fintechs. of payment methods follows several paths, more and more consumers from all over Brazilian public to payment technolo- The biggest enemy of Visa in Latin which vary from country to country. the country uses cards and other digital gies by approximation and wearables America is cash. In Brazil, from 2008 to The fact is that this potential is enor- means, be it in person or through the like? 2018, the value exchanges via credit card mous in Latin America. It is only necessary Internet or applications, in their pur- TELES Payment by approximation has been purchases in the country went from BRL to look at the number of countries such as chases. And more and more stores and defining the way in which Brazilians com- 335.67 billion to BRL 1.5 trillion, according the United States or South Korea, where service lenders are accepting this kind of plete their purchases, by the convenience to data from the Brazilian Association of the use of credit cards reaches 45% and transaction. of being more practical and fast, and by Card and Services Companies, the ABECS. 70% of family spending, respectively. In other words, there is still quite a bit the security of the user not having to pass Credit card payments account for 40% of If in China the mobile payment and/or of space for growth. I would say that there their card from hand to hand, so that the family spending in Brazil—a level that is instantaneous has already exceeded the is no silver bullet, a single solution that we payment might be concluded. also due to the gradual opening of the cash alternative via credit cards and the bet on, and the person that decides is the Public transport is one of the sectors segment by regulating institutions since margins of the regulated market bloomed, consumer, that is sufficiently empowered that has been helping to popularize the 2010, and the subsequent entry of new this will not happen in Brazil, where there to choose that which offers the most con- technology. In May of this year, Visa players in the chain as a whole. Until 2022, is a fixed park of card machines and in full venience in their day to day. announced the pay- the goal of brands, such as Visa and development. “I would say that there is no Beyond payments by approximation, ment by approxima- Mastercard, lenders and acquirers, will be silver bullet, a single solution on which I also believe that the upcoming solu- tion for credit cards There is no silver bullet, to make the card and electronic payment we bet on, and the person that decides is tions that will be more broadly adopt- in collaboration with methods correspond to 60% of family the consumer, that is sufficiently empow- ed by Brazilians will be instantaneous MetrôRio. Cariocas a single solution that spending in Brazil. ered to choose that which offers the most transfers from person to person and/or and tourists already we bet on, and the Challenges behind this goal are not only convenience in their day to day,” evalu- between companies; and the acceptance adhered to the pay- a question of technology, but rather of ates the general director of Visa in Brazil, of online debit, be it in e-commerce or in ment by approxima- person that decides is culture and of how the payment methods, Fernando Teles. applications. tion technology in the consumer, that is together with the popularization of smart- In an interview with LABS, he spoke of In the case of instantaneous transfers, it the subway of Rio de phones, have the power to contribute to the the future of payments and also of how a will be possible to make direct payments Janeiro. According sufficiently empowered to formalization of relations of production, true transformation, in the past three years, between peers (P2P), payments of com- to data from choose that which offers and also to the social inclusion of the pop- with a focus on innovation opened new panies to individuals, such as insurance VisaNet, from the ulation. This means that the development horizons for Visa operations in the country. compensations and payments to service launch of the new the most convenience in their day to day. FERNANDO TELES, GENERAL DIRECTOR OF VISA BRAZIL 4 LABS COLLECTIONS LATIN AMERICA TRAILBLAZERS LABS COLLECTIONS LATIN AMERICA TRAILBLAZERS 5 Visa does not have a team responsible for innovation. LABS Some surveys show that Brazilians All our employees participate are more open to new technologies than individuals from other places. in developing solutions. Why does that happen? FERNANDO TELES, TELES We are a strategic country, since GENERAL DIRECTOR OF VISA BRAZIL we have a gigantic acceptance park and a people thirsty for experimenting with new technologies. Brazilians are early adopters payment option at the end of April to July, and like to try out new things. And because the number of transactions by approxima- they are favorable to implementing new tion completed in the 41 stations of the Rio technologies, they became assiduous users de Janeiro subway grew 58%.