Brazilian fintechs are preparing for a year of adjustment in 2026 after the Central Bank rolled out a set of regulatory changes in 2025, with smaller firms expected to feel the impact more than established players, according to executives and market participants.

The main shift is higher minimum capital and net worth requirements, now calculated according to business activity rather than licence type, Valor reported.

A transition phase starts in July and runs through the end of 2027. Payment Transaction Initiators, previously subject to the lowest threshold, must now hold at least BRL9.2mn ($1.74mn) in capital, compared with BRL1mn before.

Net worth must match that level and reflects balance sheet items, including profits or losses, increasing the burden for loss-making firms.

“If a company works with the minimum [capital], it will be operating right at the limit. Any unexpected loss would require new capital injections,” said Jonatas Giovinazzo, head of the Association of Payment Transaction Initiators. “In the end, this raises the barrier to entry.”

Wagner Moraes, chief executive of A&S Partners, said the regulator wants to keep “adventurers” out of the market. He estimates Brazil had about 2,100 active fintechs by mid-2025, potentially rising to 3,200 by 2028.

Diego Perez, president of ABFintechs, said operating costs are set to increase, encouraging consolidation. “Smaller fintechs focused on niche segments or offering just one product may face difficulties,” he said.

Tax changes may add pressure. A law approved in December raised the CSLL (Social Contribution on Net Profit) tax for financial firms.

“Of course, tax changes have an impact,” said Eduardo Lopes, president of Zetta. “They may squeeze short-term margins, especially for startups in the scaling phase.” Perez added: “This will hit smaller fintechs the hardest, they don’t have the same profit margins.”