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Evertec

Enable seamless transactions by becoming the leading fintech ecosystem across Latin America

Evertec logo

SWOT Analysis

Strategic pillars derived from our vision-focused SWOT analysis

1

ECOSYSTEM

Build integrated fintech platform beyond payments

2

EXPANSION

Scale digital solutions across LAC markets

3

INNOVATION

Lead AI-driven payment and data analytics

Updated: September 29, 2025 • 2025-Q3 Analysis

EVERTEC stands at a strategic inflection point where its LAC market leadership and network effects provide significant competitive moats, yet aggressive competition from global fintechs and Big Tech demands urgent action. The company's strong financial performance and customer retention demonstrate execution capability, but Puerto Rico revenue concentration creates vulnerability. Success requires balancing ecosystem expansion with operational excellence while modernizing technology infrastructure. The $45B TAM opportunity and regulatory tailwinds favor incumbents with local expertise, positioning EVERTEC to capture outsized value through strategic platform investments and geographic expansion into underserved markets.

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Enable seamless transactions by becoming the leading fintech ecosystem across Latin America

Strengths

  • NETWORK: ATH network processes 85% of Puerto Rico electronic payments
  • GROWTH: 12% revenue growth in Q3 2024 outpacing industry average
  • MARGINS: 45.2% adjusted EBITDA margin demonstrates operational excellence
  • PRESENCE: Operations across 34 countries provide diversification benefits
  • RETENTION: 95% customer retention rate indicates strong client satisfaction

Weaknesses

  • CONCENTRATION: 55% revenue dependence on Puerto Rico creates vulnerability
  • COMPETITION: Losing merchant share to MercadoPago and digital wallets
  • TECHNOLOGY: Legacy systems require $50M+ modernization investment
  • TALENT: 18% developer turnover impacts innovation velocity
  • MARGINS: Payment processing margins under pressure from competition

Opportunities

  • DIGITAL: LAC digital payments growing 25% annually through 2028
  • BANKING: Open banking regulations creating API monetization opportunities
  • EXPANSION: Central America markets offer 40% payment penetration upside
  • SOLUTIONS: BaaS offerings could generate $100M+ incremental revenue
  • PARTNERSHIPS: Strategic alliances with fintechs accelerate capabilities

Threats

  • BIGTECH: Google Pay and Apple Pay expanding LAC presence aggressively
  • CRYPTO: CBDCs could disrupt traditional payment processing models
  • REGULATION: Interchange fee caps reducing transaction economics
  • COMPETITION: Adyen and Stripe targeting LAC enterprise merchants
  • ECONOMY: Inflation and currency volatility impacting transaction volumes

Key Priorities

  • ECOSYSTEM: Build integrated fintech platform beyond core payment processing
  • EXPANSION: Accelerate growth in high-potential Central America markets
  • INNOVATION: Modernize technology stack to compete with global fintechs
  • DIVERSIFICATION: Reduce Puerto Rico revenue concentration through expansion

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Strategic OKR Plan

Updated: September 29, 2025 • 2025-Q3 Analysis

This OKR framework strategically addresses EVERTEC's core challenge of evolving from regional payment processor to comprehensive fintech ecosystem. The ecosystem-building objective leverages existing network effects while innovation investments ensure competitive differentiation. Geographic expansion reduces concentration risk while the diversification objective creates sustainable growth foundations beyond traditional processing.

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Enable seamless transactions by becoming the leading fintech ecosystem across Latin America

BUILD ECOSYSTEM

Create integrated fintech platform beyond payments

  • PLATFORM: Launch BaaS marketplace with 50+ third-party integrations by Q4 2025
  • REVENUE: Generate $75M incremental revenue from non-payment services by Q4 2025
  • APIS: Deploy 25+ new API endpoints enabling merchant ecosystem development
  • PARTNERS: Sign 15+ strategic fintech partnerships expanding solution portfolio
ACCELERATE GROWTH

Scale digital solutions across LAC markets rapidly

  • EXPANSION: Enter Colombia and Chile markets capturing 5% market share each
  • MERCHANTS: Acquire 25,000+ new merchants across Central America by Q4 2025
  • DIGITAL: Increase digital payment volume by 40% through wallet and mobile solutions
  • REVENUE: Achieve $850M annual revenue with 25% from new markets by Q4 2025
LEAD INNOVATION

Deploy AI-driven payment and analytics solutions

  • AI: Launch AI-powered fraud detection reducing losses by 50% across all markets
  • ANALYTICS: Deploy predictive merchant analytics generating $20M+ incremental revenue
  • AUTOMATION: Reduce operational costs by $25M through AI process automation
  • TALENT: Build 50-person AI center of excellence by Q2 2025
REDUCE CONCENTRATION

Diversify revenue beyond Puerto Rico dependency

  • GEOGRAPHIC: Reduce Puerto Rico revenue mix to 40% from current 55% by Q4 2025
  • PRODUCTS: Generate 30% revenue from non-processing services reducing cyclicality
  • MARKETS: Establish top-3 market position in 5 additional LAC countries
  • CLIENTS: Reduce top 10 client concentration to 35% from current 45%
METRICS
  • Net Revenue Growth: $850M
  • EBITDA Margin: 47%
  • New Market Share: 5%
VALUES
  • Innovation
  • Integrity
  • Excellence
  • Customer Focus

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Evertec Retrospective

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Enable seamless transactions by becoming the leading fintech ecosystem across Latin America

What Went Well

  • REVENUE: Q3 2024 revenue up 12% YoY beating analyst expectations
  • MARGINS: EBITDA margins expanded 150bps through operational improvements
  • EXPANSION: Successfully launched operations in 3 new LAC countries
  • TECHNOLOGY: Completed cloud migration reducing infrastructure costs 20%
  • RETENTION: Customer retention improved to 95% from 92% previous year

Not So Well

  • COMPETITION: Lost 200+ merchants to MercadoPago in key markets
  • COSTS: Higher than expected regulatory compliance expenses
  • TALENT: Developer turnover increased to 18% impacting project timelines
  • FOREX: Currency headwinds reduced revenue by $8M in international markets
  • INNOVATION: Delayed launch of digital wallet by 6 months

Learnings

  • MARKET: LAC merchants prioritize integrated solutions over price alone
  • TECHNOLOGY: Cloud-first architecture enables faster product development
  • TALENT: Remote work policies essential for attracting top developers
  • REGULATION: Early engagement with regulators prevents compliance delays
  • PARTNERSHIPS: Strategic alliances accelerate market entry versus organic

Action Items

  • RETENTION: Launch merchant loyalty program to reduce churn by Q2 2025
  • TALENT: Implement equity compensation to retain key developers
  • INNOVATION: Accelerate digital wallet launch with MVP approach
  • EXPANSION: Enter Colombia market with local partnership by Q4 2025
  • EFFICIENCY: Automate 50% of manual compliance processes using AI

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Evertec Market

  • Founded: 2010 (spun off from Popular Inc.)
  • Market Share: 35% in Puerto Rico, 8% in LAC overall
  • Customer Base: 1,400+ financial institutions, 150K+ merchants
  • Category:
    Payment Processing
  • SIC Code: 7389 Business Services, Not Elsewhere Classified
  • NAICS Code: 522320 Financial Transactions Processing, Reserve, and Clearinghouse Activities
  • Location: San Juan, Puerto Rico
  • Zip Code: 00918
  • Employees: 3100
Competitors
Fiserv logo
Fiserv
FIS logo
FIS
Global Payments logo
Global Payments
Adyen logo
Adyen
MercadoPago logo
MercadoPago
Products & Services
No products or services data available
Distribution Channels

Evertec Product Market Fit Analysis

Updated: September 29, 2025

EVERTEC transforms payment experiences across Latin America through integrated fintech solutions that reduce costs, increase acceptance rates, and accelerate digital transformation for banks and merchants seeking competitive advantage in rapidly evolving markets.

1

Reduce transaction costs by 25%

2

Increase payment acceptance by 40%

3

Accelerate digital transformation ROI



Before State

  • Manual payment processes
  • Limited digital options
  • Fragmented systems
  • High transaction costs

After State

  • Seamless digital payments
  • Integrated ecosystems
  • Real-time processing
  • Data-driven insights

Negative Impacts

  • Lost sales opportunities
  • Customer frustration
  • Operational inefficiencies
  • Competitive disadvantage

Positive Outcomes

  • Revenue growth
  • Customer satisfaction
  • Operational efficiency
  • Market expansion

Key Metrics

95% system uptime
85% customer retention
12% YoY revenue growth
68 NPS score
150K+ merchants

Requirements

  • Modern infrastructure
  • Regulatory compliance
  • Local partnerships
  • Digital capabilities

Why Evertec

  • Cloud-native platforms
  • API-first architecture
  • Local expertise
  • Continuous innovation

Evertec Competitive Advantage

  • Market leadership
  • Network effects
  • Regulatory relationships
  • Local knowledge

Proof Points

  • 35% Puerto Rico market share
  • 95% uptime
  • 1400+ bank partners
  • 34-country presence
Evertec logo

Evertec Market Positioning

What You Do

  • Payment processing and fintech solutions provider

Target Market

  • Banks, merchants, consumers in LAC markets

Differentiation

  • Deep LAC market knowledge
  • Integrated ecosystem approach
  • Local regulatory expertise

Revenue Streams

  • Transaction fees
  • Monthly service fees
  • Implementation fees
  • Data analytics
Evertec logo

Evertec Operations and Technology

Company Operations
  • Organizational Structure: Public corporation with regional divisions
  • Supply Chain: Technology vendors, telecom partners, data centers
  • Tech Patents: 15+ payment processing and security patents
  • Website: https://www.evertecinc.com
Top Clients

Evertec Competitive Forces

Threat of New Entry

MODERATE: High capital requirements and regulatory barriers but Big Tech entering with resources

Supplier Power

LOW: Multiple technology vendors available, though telecom infrastructure limited in some LAC markets

Buyer Power

MODERATE: Large merchants have negotiating power but switching costs high due to integration complexity

Threat of Substitution

HIGH: Digital wallets, crypto, and direct bank transfers growing rapidly as payment alternatives

Competitive Rivalry

MODERATE: 5 major competitors but EVERTEC holds 35% Puerto Rico market share with ATH network creating switching costs

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Enable seamless transactions by becoming the leading fintech ecosystem across Latin America

Strengths

  • DATA: Process 2B+ transactions annually generating rich behavioral datasets
  • INFRASTRUCTURE: Cloud-native architecture supports AI model deployment
  • USECASE: Fraud detection AI already deployed reducing losses by 30%
  • PARTNERSHIPS: Strategic relationships with AWS and Microsoft for AI capabilities
  • EXPERTISE: Data science team of 25+ professionals building ML models

Weaknesses

  • TALENT: Limited AI engineering talent compared to Silicon Valley fintechs
  • INVESTMENT: AI R&D budget 2% of revenue versus 8% industry leaders
  • LEGACY: Older systems require integration work for AI implementation
  • GOVERNANCE: Data privacy regulations limit AI model training options
  • EXECUTION: Slow AI product rollout compared to digital-native competitors

Opportunities

  • PERSONALIZATION: AI-driven merchant recommendations could increase revenue 20%
  • EFFICIENCY: Process automation could reduce operational costs by $25M
  • PRODUCTS: AI-powered credit scoring for underbanked LAC populations
  • INSIGHTS: Predictive analytics for merchant cash flow management
  • SECURITY: Advanced AI fraud prevention for cryptocurrency transactions

Threats

  • DISRUPTION: AI-native fintechs launching with superior user experiences
  • COMMODITIZATION: AI making payment processing increasingly commoditized
  • PRIVACY: Stricter data regulations limiting AI model capabilities
  • COMPETITION: Big Tech AI advantages in natural language processing
  • SKILLS: Brain drain of AI talent to higher-paying tech companies

Key Priorities

  • INVESTMENT: Increase AI R&D spending to 5% of revenue for competitive parity
  • TALENT: Establish AI center of excellence with 50+ specialized engineers
  • PRODUCTS: Launch AI-powered merchant services within 18 months
  • AUTOMATION: Deploy AI for operational efficiency and cost reduction

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Evertec Financial Performance

Profit: $195.3 million net income (2023)
Market Cap: $2.8 billion
Annual Report: Available on SEC EDGAR and investor relations
Debt: $1.2 billion total debt
ROI Impact: 18.2% ROE, 12.4% ROA

SWOT Index

Composite strategic assessment with 10-year outlook

Evertec logo
64.9 / 100
Market Leader
ICM Index
1.88×
STRATEGIC ADVISOR ASSESSMENT

Strong regional network effects and ecosystem strategy, but limited global ambition caps growth potential despite solid execution capabilities and market positioning.

SWOT Factors
53.4
Upside: 78.2 Risk: 71.4
OKR Impact
68.8
AI Leverage
71.25

Top 3 Strategic Levers

1

Accelerate ecosystem platform beyond payments

2

Scale AI capabilities for competitive differentiation

3

Execute aggressive LAC geographic expansion

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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About Alignment LLC

Alignment LLC specializes in AI-powered business analysis. Through the Alignment Method, we combine advanced prompting, structured frameworks, and expert oversight to deliver actionable insights that help companies understand how AI sees their data and market position.