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The strategy of regional expansion was also expected to drive the trend of mergers and acquisitions over the medium term in Latin America .
Firms are seeking to strengthen their presence through regional expansion in the Latin American market
The unbanked and underbanked customer demographic continues to present a strong growth opportunity for prepaid payment instrument providers . Overall , ResearchAndMarkets . com maintains a positive growth outlook for the prepaid card industry over the next three to four years .
Across Latin America , the demand for digital wallets and prepaid cards is poised to grow at a rapid rate over the medium term . To tap into the growing demand , fintech firms and digital banks are expanding their regional presence . This trend is projected to gain further momentum throughout 2024 .
Itau , which has a strong presence in the banking sector in Chile , is also targeting digital customers in Chile through its neo-banking arm Iti .
Prex , a Uruguay-based fintech firm , is planning to have 5 million users for its virtual wallet over the next two years . As a result , it seeks to strengthen its position in existing markets like Argentina , Peru , and Uruguay , while also expanding in other regional markets like Chile and Paraguay . The firm , as of November 2023 , has 2.2 million users in its existing three countries .
64 INTELLIGENTCIO LATAM www . intelligentcio . com