Business

Brazil's Magazine Luiza acquires payments fintech Hub Prepaid for BRL 290 million

Magazine Luiza is expanding the offer of financial products to customers of its platform

Photo: REUTERS/Paulo Whitaker
  • The company said Hub developed the entire banking structure for offering financial products via its digital account;
  • The retail chain stated that its platform customers will now have a prepaid card.

Brazilian retailer Magazine Luiza announced on Monday the acquisition of Hub Prepaid, a payments fintech, for BRL 290 million, expanding the offer of financial products to customers of its platform.

The company said Hub developed the entire banking structure for offering financial products via its digital account (which has 4 million accounts), in addition to prepaid cards, assets that moved BRL 6.6 billion in the last 12 months. This flow of transactions generated unaudited gross revenue of BRL 159 million.

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The retail chain stated that its platform customers will now have a prepaid card that will reflect their digital account balance, while also allowing transactions in the brick-and-mortar world.

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Hub is regulated by the Brazilian Central Bank as a payment institution, in addition to being integrated into the PIX, the instant payment system recently launched by Brazil’s Central Bank.

(Translated by LABS)

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