International Tech Hubs 3rd ed. - Digital Magazine plugd:in

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INTERNATIONAL TECH HUBS THIRD EDITION | BDO LLP

BRAZIL

With expert input from Dario Lima, a Partner based in our São Paulo office who heads up the Department of Professional Practice and Risk Management and the Capital Markets Group for BDO Brazil. Dario has worked extensively in the technology, media and telecommunications industries with a focus on capital markets and industry growth in Latin America.

INDEED, BRAZIL HAS THE FIFTH BIGGEST CONSUMER LANDSCAPE FOR MOBILE PHONE USAGE WORLDWIDE, WITH EVEN THOSE IN LOWER- INCOME GROUPS OFTEN OWNING TWO CELL PHONES .

The size of the country, spread along the south of the Americas, provides a wealth of opportunities for businesses to expand their tech offerings. This is especially so in the fintech space, which is already beginning to revolutionise payment and banking technology in response to a move by the Brazilian Central Bank (BCB) to open the payment processing market to include non-traditional players (“Pix”, a new instant payment technology by BCB, now enables people and businesses to transfer money and make or receive payments in less than 10 seconds, using only mobile apps). The uptake of technology services has of course been further accelerated by the coronavirus pandemic, with an increasing number of individuals and businesses now requiring access to remote technologies and data protection services. The implementation of the Brazilian General Data Protection Law in 2020 has already increased public consciousness about the need to protect personal data, with Brazil being a known centre of data theft. 2020 saw a record number of digital data theft attempts, no doubt because of the pandemic.

OVERVIEW When it comes to opportunities for growth and global expansion, recent and upcoming developments in Brazil’s technology landscape speak to the region’s significant potential. In the wake of the pandemic, astute investors will be looking to ride Brazil’s technological revolution as the region establishes its position as a growing global influence with direct links to the rest of Latin America (LatAm) and the USA. THE TECH LANDSCAPE Brazilians are among the biggest users of technology in the LatAm region, which offers great opportunities for foreign investment. Indeed, Brazil has the fifth biggest consumer landscape for mobile phone usage worldwide, with even those in lower-income groups often owning two cell phones. Brazilians are also big international travellers, exposing both consumers and investors to up and coming technologies from UK, Europe and the US that they cannot access back home.

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