His story is that of a tireless entrepreneur who, after his experience in the business world, managed to build a solution that is now transforming the way companies handle payments and refunds in Latin America.
Our CMO began the conversation by congratulating Franco on his appointment as one of LatAm’s top innovators under 35. The list, compiled by MIT Technology Review, annually recognizes and rewards the most innovative young minds in the international technology landscape. Let’s take a look at his journey to achieving this remarkable milestone!
Franco Zurita,“We have a great relationship with banks. Today, several major financial institutions in Latin America use us as a pilot to launch their solutions to the market.”
CCO and Co-founder of Monnet Payments.
The beginnings of Monnet: From entrepreneur to Fintech
Franco always knew he wanted to be an entrepreneur. From selling products at school to launching his first startup in university, his entrepreneurial spirit led him to develop asfutbol.com, a social network for football players in Peru. Although this project did not become the “Facebook of football” he had imagined, it allowed him to learn about the digital ecosystem and opened doors to new opportunities.
Later, he decided to explore the corporate world and joined a payments company in the commercial area. His talent and determination led him to be promoted and transferred to Chile, where he identified a pressing issue in the region: the lack of efficiency in massive payments and refunds. Along with his partner, Eduardo Luna, they proposed a solution within the company they worked for. However, internally it was not being prioritized, which led them to make the decision to branch out and create what would become Monnet Payments.
Juanjo commented that it is sometimes paradoxical to see how fintechs emerge and recalled the story told by Natalia Jiménez, CEO of Lulo X, about how this new business line was born as a “spin-off” of Lulo Bank. In her case, it was indeed an internal entrepreneurship, and they received strong backing from the parent company.
The innovative solution of Monnet Payments
Returning to the interview, Franco explained that when a person wanted to return an online purchase made with a debit card or bank transfer, the process took more than 21 days. Monnet Payments revolutionized this process, reducing that time to 30 minutes and, in many cases, to seconds. This innovation has benefited consumers and businesses in sectors such as e-commerce, retail, and ride-hailing, facilitating payment flows and increasing end-user satisfaction.
In addition to its payouts service, which allows companies to make massive payments instantly, Monnet developed a collection solution to facilitate payment reception in different countries. Thanks to its connections with the main payment methods in each market, companies can operate across multiple geographies with a single integration. The ease with which Monnet connects multiple payment methods significantly reduces friction in transactional processes and provides greater flexibility to clients.
Franco Zurita said…
“We were pioneers and, thanks to that, we now serve companies of all sizes and industries. Digital payment companies also use our services. We prefer to view them as partners, not competitors.”
Growth and expansion of Monnet Payments Solution
Since its founding in 2020, in the midst of the pandemic, Monnet Payments has grown rapidly. With a presence in eight countries and upcoming expansions to Brazil and other regions, the fintech has demonstrated its ability to scale quickly in emerging markets. Currently, the team consists of 250 people… and counting!
Monnet’s growth has been driven by its philosophy of only entering new markets when there is a concrete business need and ensuring that each operation is self-sustainable within a maximum period of six months. This strategy has allowed Monnet to establish itself in key markets such as Peru, Chile, Ecuador, Mexico, Colombia, Guatemala, Honduras, and Argentina, with plans to expand to other countries in the region.
One of the key elements of its success has been its flexible and adaptable business model, allowing it to serve clients from different sectors and respond quickly to changing market needs. Additionally, the company has capitalized on the rise of digital commerce and growing consumer expectations for speed and security in payments.
Monnet’s main clients
Its initial strategy focused on clients who needed to make massive payments and refunds, as there was no existing solution for them at the time. After the retail sector, they saw a great opportunity in industries such as tourism and transportation, which need to pay commissions and process refunds.
Today, they offer services to travel agencies, airlines, cruise lines, hotels, and many more. The financial industry also benefits from their solutions, as they need to advance salaries, process payrolls, create wallets, approve loans, etc. Franco also mentioned that they work with payment service providers (PSPs) that focus on pay-in services but lack payout solutions.
Challenges and opportunities in digital payment systems
The journey has not been without challenges. From overcoming bureaucratic barriers to opening bank accounts in different countries to developing robust technology without initially having a fully technical team, Monnet has faced numerous obstacles. However, its focus on problem-solving and a growth mindset has enabled it not only to overcome these challenges but also to position itself as a regional leader.
One of fintech’s major achievements has been securing direct connections with banks, which are responsible for executing payments. Whether via API, host-to-host, or batch processing, most ensure real-time payments. Additionally, they have expanded their services to include payments to digital wallets and physical locations, opening new opportunities to enhance financial inclusion in Latin America.
The adoption of digital wallets and instant payments has been key to their strategy, as these methods are gaining increasing relevance in the region. In some countries, digital payments are beginning to replace cash usage, and Monnet has positioned itself as a facilitator of this transition.
The future of Monnet Payments and the payouts industry
Monnet’s goal is clear: to become Peru’s first fintech unicorn and expand globally. With a vision of sustainable growth and a well-defined strategy, Franco and his team are focused on continuing to develop technologies that facilitate payments in Latin America and beyond.
“We keep opening channels and are not satisfied with merely reducing the user’s waiting time to minutes or seconds; we want them to receive their money in real-time,” said our guest. Their goal is for people to get the most out of the latest technological innovations.
In the next five years, Monnet aims to establish itself as a key player in the digital payments industry, which means working alongside major global players. Their expansion plan includes increasing investment in technology, continuing to establish strategic partnerships with banks and financial institutions, and seeking new solutions to enhance the customer experience.
The story of Monnet Payments is a testament to the importance of effort and vision in transforming the industry. Juanjo thanked Franco and our audience for their time and signed off until the next episode of The Fintech Podcast.
Thank you for being there!
