Revolutionizing the way merchants process payments and focusing on security and innovation has allowed Lyra to conquer key markets. Join us to discover how Fernando’s vision and his team are shaping the future of payments in Latin America!
Fernando Luna Guzmán’s journey in the payments industry
The founder and CEO of Lyra Network for Chile, Argentina, and Peru began his career in the land of poets, where he participated in the development of a POS network that captured payments with non-bank credit cards. At a time when private label cards were not branded with Visa or Mastercard, Fernando led a project that simplified payment infrastructure for merchants.
His experience in various companies gave him a global perspective of the market. At DineroMail (now PayU), he played a key role in the company’s expansion in the region, positioning the platform as a digital wallet and an online payment gateway. After nearly eight years with the company, a new challenge emerged: leading Lyra Network’s expansion in Latin America.
Fernando Luna,“Thanks to our plug-and-play approach, a business integrating in Chile, for example, can quickly expand to the rest of Latin America by simply changing the country code and currency.”
Co-founder and CEO of Lyra Network for Chile, Argentina, and Peru.
What Is Lyra Network and how has it evolved over 25 years?
This French fintech has been in the global market for over a quarter of a century. Initially, it specialized in transmitting financial data from ATMs and POS terminals, ensuring secure and efficient connections for the banking and retail industries.
“Basically, we used to buy communication solutions from telcos and add layers of added value. That is, we optimized the network and implemented all necessary front-end solutions to prevent data leaks when financial information is transmitted,” explained the executive.
Over time, Lyra developed a new business vertical and became a payment gateway, providing advanced technological solutions for e-commerce. This allows merchants to integrate seamlessly and process online payments securely and efficiently.
Lyra network’s expansion in Latin America
The company’s regional expansion began in Brazil, a challenging market due to its regulations and competition. However, its growth potential encouraged Lyra to expand into countries such as Chile, Argentina, and Peru, reaching a presence in 14 Latin American countries.
One of the main challenges during this process has been adapting to the particularities of each market. Differences in regulations, financial infrastructure, and consumer behavior require a tailored strategic approach. However, the company has already positioned itself as a key player in the region.
Innovative solutions for e-commerce
One of Lyra Network’s standout features is its commitment to security and efficiency in online payments. The company has developed an easy-to-integrate API, enabling merchants to process payments without significant investments in technological infrastructure.
Additionally, the fintech has embraced recurring payments and tokenization solutions, facilitating subscription-based payments and reducing friction in recurring transactions. This way, users’ cards are securely stored and automatically updated, preventing customer loss.
Lyra network’s impact and growth
Today, the company processes approximately 15 million transactions per month globally, with Latin America accounting for 35% of that volume. Lyra’s business model is based on a fixed transactional cost per operation, making it an attractive option for companies across various sectors, including telecommunications, insurance, streaming platforms, and education.
Lyra also developed white-label solutions for banks and financial institutions, allowing these entities to offer payment services under their own brand while Lyra manages the infrastructure and technical support. “We love this model because it gives us reach and accelerates our growth,” said Fernando.
Criteria for expanding into new markets
Lyra’s growth continues. When deciding on new markets to enter, the company considers three key factors: market size, digital payment maturity, and the regulatory framework. Brazil was one of its first bets due to its high transaction volume, but markets like Chile, Peru, and Argentina have shown rapid advancements in financial digitalization, making them attractive options.
This fintech also aims to serve merchants with regional operations, offering a seamless integration that allows them to operate in multiple countries with minimal technical adjustments. Thanks to its plug-and-play approach, “a business integrating in Chile, for example, can quickly expand to the rest of Latin America by simply changing the country code and currency,” our guest explained.
The regulatory challenge in fintech payments
The regulatory diversity across countries demands a careful and collaborative approach. That’s why the CEO and co-founder emphasized that fintech companies must actively participate in regulatory discussions with local authorities. Furthermore, “regulating a payment processing fintech is not the same as regulating one that handles and distributes funds,” he pointed out.
A prime example of regulated digitalization is India’s UPI (Unified Payments Interface) system, which is promoting financial inclusion. By replicating this model in Latin America, the goal is to integrate unbanked or underbanked users into the digital economy.
QR payment interoperability: A challenge overcome
One of the main innovations in digital payments is the use of QR codes. However, one of the biggest challenges has been the lack of interoperability between different QR standards in the region.
💡 Fernando Luna said…
“The key is to balance security with a seamless payment experience for the user.”
Many companies struggle to integrate multiple standards while maintaining a seamless payment experience for users. Today, collaborative efforts with regulatory entities have helped standardize their use, facilitating adoption across different regional markets.
Payment security: Reducing friction and preventing fraud
Ensuring payment security is a critical aspect of the process. The implementation of 3D Secure (3DS) adds an extra layer of authentication during transactions to prevent fraud. However, “the key is to balance security with a seamless payment experience for the user,” Fernando noted.
The company’s innovation lies in its frictionless approach, which guarantees that transactions are processed quickly and securely without unnecessary steps (such as forms, redirections, or additional gateways). “The user experience should feel like: I’m paying in the store,” he explained.
In cases where risk is detected, a “challenge” mechanism is activated, requesting additional validation from the user to ensure the transaction’s legitimacy. This combination of security and usability reduces fraud risk while maintaining a high-conversion and smooth shopping experience.
The future of financial inclusion in Latin America
At this point, our CMO, Juanjo Gómez, highlighted that financial inclusion remains one of the biggest challenges in Latin America. “With over 30% of the population in countries like Mexico lacking full access to banking services, fintech companies play a crucial role in developing solutions that digitalize these citizens”, he said.
Fernando responded that projects like UPI help integrate unbanked individuals and bridge the financial gap. He also emphasized that its development must go hand in hand with regulation, which should define responsibilities in data management. According to the CEO, the implementation of Open Banking will create a more interconnected and accessible ecosystem.
Emerging trends in the payments industry
Juanjo was curious about the evolution of the payments industry and the trends Lyra Network is exploring. The entrepreneur replied that one of the most important is “point-of-sale financing, embedded finance that allows consumers to finance their purchases directly through the payment platform.”
Artificial intelligence (AI) is also playing an increasingly significant role in user authentication and Know Your Customer (KYC) processes. “Automating these processes with AI can greatly enhance user experience by increasing security and reducing wait times,” he stated.
Blockchain is another trend to watch, as it provides an additional layer of security for handling digital assets, which is essential to shield global transactions. The executive believes adopting these technologies will enable greater connectivity and flexibility in international payments.
Lyra is preparing to leverage these trends and expand its presence in the region. The company is also positioned to innovate in the public transportation sector and other industries, with projects already making a significant impact on transaction volume.
With the adoption of new technologies and the expansion of its solutions in key markets, Lyra is transforming the payments landscape in Latin America.
Thanks to Fernando Luna and our audience for this fantastic conversation!
