Categories: Business

A new fintech arises: Nuvemshop invests BRL 150 million in payment method for SMEs

  • The new payment method will be made available to e-commerces gradually by the end of the year;
  • With the launch, Nuvemshop enters the payments market and hopes to complement the platform with more financial services.

The e-commerce platform Nuvemshop (or Tiendanube, as it is called in other Latin American countries) announced on Tuesday that it is entering the payments market with Nuvem Pago, a proprietary payment solution for small and medium shopkeepers in Brazil.

After receiving three fundraising rounds that amounted to more than BRL 3.2 billion in ten months and becoming a unicorn, Nuvemshop invested BRL 150 million to develop its proprietary payment method that will be made available gradually by the end of the year, based on the request of shopkeepers.

“We are entering this fintechs market with our payment method focused on small and medium-sized businesses,” said Santiago Sosa, CEO, and co-founder of Nuvemshop, in a press release. “Even with this launch, we will maintain our open platform DNA, integrating various companies – from payments and other categories – so entrepreneurs can choose the best option for their business, according to each of their e-commerce needs.”

READ ALSO: Nuvemshop buys logistics startup Mandaê

According to Rodrigo Rivera, Vice President of Strategy at Nuvemshop and responsible for the Payments and Logistics business in Latin America, payment method and logistics are the biggest pains of small and medium-sized e-commerces. “Understanding this challenge, we have invested in a new solution, made from the close contact we have with shopkeepers and the deep knowledge of the day-to-day management of e-commerce, to offer a better experience to shopkeepers and their consumers.”

READ ALSO: LatAm’s answer to Shopify, Nuvemshop is valued at $3.1 bln after Series E round

According to a recent survey conducted by the company, 80% of
consumers who cannot find the payment method they want in e-commerce will not complete an order. “Since our last contribution, we have been investing in technology for e-commerce and plan to offer even more resources, either in-house or through our ecosystem, for brands of all sizes to connect directly with their consumers. We have just announced the acquisition of the logistics company Mandaê and now we are taking the first step in the payments sector for SME e-commerces,” said Rivera.

He says that soon Nuvem Pago will add financial products ranging from loans, POS, and insurance for shopkeepers. The expansion of the payment method to Latin America will come “in the coming years,” according to Rivera.

READ ALSO: Investments made by Argentina’s NXTP Ventures, a pioneer in LatAm venture capital, start to pay off

The payment solution integrated with the online shop accepts the main credit card brands, Brazil’s payment slip boleto and Brazil’s real-time payments system PIX. There is no activation fee or monthly fee to use Nuvem Pago. All payments made are transacted automatically by the tool and, if the shopkeeper wishes to offer other payment options in e-commerce, they remain available.

Nuvemshop said it will exempt the fee per sale for all customers who opt for this new payment method.

This post was last modified on October 26, 2021 1:43 pm

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